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Coronavirus Freezes Debt Collection Lawsuits in NYC

NY State Courts have nearly come to a halt amid the Covid-19 Coronavirus outbreak. Very few matters are currently being heard by the Courts and a moratorium on nearly every type of filing is currently in place, including debt collection lawsuits. Some exceptions to the moratorium for "essential matters" are stated below. For those that have a bank account frozen due to a judgment for which they have not been legally served, the courts are still allowing the filing of Orders to Show Cause to Vacate Judgments.

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Collection Lawsuits During Coronavirus Covid-19

While there is a standing order in place concerning the filing of new debt collection lawsuits, existing cases may proceed, although many hearings are being adjourned to later dates. Calls from debt collectors continue to take place and court appearances remain on the court calendar. Additionally, judgments currently in place against debtors continue to be enforced by Marshals and Sheriffs. In other words, if you have a judgment against you, your bank accounts remain exposed to seizure and your wages remain exposed to garnishment. There is not any safer harbor or provision currently in place protecting defendants of existing debt collection lawsuits amid the Covid-19 Coronavirus outbreak.

If you find yourself in one of these situations, contact our legal team for assistance. We have resolved many debts for clients who have not yet been sued, are currently being sued, or have judgments against them. Furthermore, we have resolved judgments for clients with wage garnishments or have a bank account frozen.

Additionally, once the freeze on the filing of debt collection lawsuits is lifted, a plethora of cases will most likely immediately be filed to make up for the time lost. If you find yourself as the recipient of one of these lawsuits, it's important that you take prompt action. A Defendant has a limited number of time to Answer and/or Appear once served with a summons.

Lastly, if you find yourself unable to contend with your debts, as of March 24, 2020, bankruptcy petitions are still permitted to be filed in the Federal Courts of New York. If you, or someone you know, is in need of this type of relief, please be advised that the attorneys at the Law Office of Simon Goldenberg PLLC are available to assist you. We are here to help the community through the instability caused by the Coronavirus Covid-19.

Call the Law Office of Simon Goldenberg, PLLC at (888) 301-0584 for a free phone evaluation.

Examples of Essential Matters:

  • Supreme Court: Mental hygiene applications, civil commitments and guardianships
  • Family Court: Child protection proceedings, juvenile delinquency proceedings, family offenses and emergency support orders
  • City Courts: Criminal arraignments, requests for orders of protection, and emergency applications.
  • All other matters (Civil, Landlord & Tenant, Traffic, parking) will be adjourned until further notice.

See: Administrative Order AO/78/20 - "Limited Filings"

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