Jeffrey M. Rosenblum, P.C.
  • Home
  • Firm
  • Attorney
  • Bankruptcy And Debt Relief
    • Bankruptcy Before Or After Divorce
    • Business Bankruptcy
    • Chapter 7 Bankruptcy
    • Filing Chapter 7 Chapter 13 Bankruptcy
    • Garnishments Liens Creditor Harassment
    • Lien Stripping
    • Loan Modifications
    • Saving Your Home
    • Short Sales
    • Medical Debt Relief
    • Taxes And Bankruptcy
    • What You Need To Know About Bankruptcy
    • Which Chapter Is Right For Me?
  • Tax Law
    • Business Commercial Tax Matters
    • Estate Planning, Probate & Tax Planning
    • IRS Tax Disputes
    • State Local Tax Disputes
    • Tax Audit Representation
  • Medical Malpractice And Personal Injury
  • Blog
  • Contact
Select Page

New York State Court adopts tighter rules for debt collection

On behalf of Jeffrey M. Rosenblum, P.C. | Sep 18, 2014 | Debt Relief

“New York state court administrators said Tuesday they have finalized rules designed to ban the collection of debts that consumers did not incur, have already paid off or which have been extinguished by the passage of the six-year statute of limitations.

Chief Judge Jonathan Lippman said the new rules will reduce instances where abusive and aggressive collectors-often holding debts that have changed hands several times over several years-seek default judgments against consumers in court based on incomplete or erroneous documents.

“If you are entitled to a judgment, you should get it,” Lippman said in an interview Tuesday. “But don’t come into court without the requisite gravitas. You have to have the particulars of the debt you are trying to collect on. The courts are all about fairness and having a level playing field. These new rules are to ensure that level playing field.”

The debts largely concern unpaid charges run up on credit cards. Holders of the debts may go to court to seek payment through default judgments, including the garnishment of debtors’ paychecks or bank accounts.

Among the changes to the final rules prompted by the comments was giving holders of old debts an extra nine months, until July 1, 2015, to file for defaults by following the current rules, with limited exceptions.

The courts also agreed to alter the requirement that a copy of the initial debt agreement be included in the default filing-documentation that banks and the debt-collection industry said is sometimes not available electronically. Instead, the courts said a copy of the last statement on the account that was sent to the debtor/consumer by the original creditor would suffice to show the existence of the account.

The final rules would apply to default filings in Supreme Court and Civil Court or other forums where the rules applied.

The new rules will:
• Require creditors to submit affidavits containing detailed proof in support of default judgment applications;
• Require that default applications contain information about the debtor’s original credit agreement, a detailed accounting of each stop in the debt’s chain of ownership and documentation that identifies the target of the default judgment as the correct debtor;
• Require the creditor’s attorney to file an affirmation that the statute of limitations has not expired;
• Require a new form of verification that notification was of the efforts made to notify the debtor of the impending default action.

The requirements that each step in a debt’s chain of ownership be documented becomes effective on Oct. 1 for all debts purchased on or after that date. “

  • Facebook
  • Twitter
  • LinkedIn

Recent Posts

  • How to start a Chapter 11 bankruptcy case
  • How can bankruptcy help me protect my home?
  • What happens if I don’t pay my credit card bill?
  • Chapter 7 bankruptcy exemptions and how they protect filers
  • Misconceptions with a Chapter 11 bankruptcy filing

Archives

  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012

Categories

  • blog
  • Chapter 11
  • Chapter 13
  • Chapter 7
  • COVID-19
  • Debt Relief
  • Firm News
  • Foreclosure
  • IRS
  • Personal Bankruptcy
  • Tax Law
  • Uncategorized

RSS Feed

Subscribe To This Blog’s Feed

Want To Know About Your Options?

Office Locations

Great Neck Office
98 Cutter Mill Road
Suite 384N
Great Neck, NY 11021

Phone:  866-394-2661
Fax: 516-829-4734  * Not for legal service 

Map & Directions

Melville Office
445 Broadhollow Road
Suite 25
Melville, NY 11747

Phone:  866-394-2661

Map & Directions

Rockville Centre Office
371 Merrick Road
Suite 303
Rockville Centre, NY 11570

Phone:  866-394-2661
Fax: 516-536-2870 * Not for legal service 

Map & Directions

Brooklyn Office
8804 4th Avenue
Brooklyn, NY 11209

Phone:  866-394-2661

Map & Directions
Jeffrey M. Rosenblum P.C Expertise Badge

Armonk Office
80 Business Park Drive
Suite 207
Armonk, NY 10504

Phone:  866-394-2661
Fax: 914-603-8320 * Not for legal service 

Map & Directions

London Office
Carrington House
6 Hertford Street
London, UK W1J7RG

Phone: 07307155001

Map & Directions
  • Follow
  • Follow
Review Us

Attorney advertising 

© 2021 Jeffrey M. Rosenblum, P.C.. All Rights Reserved.

Disclaimer | Site Map | Privacy Policy | Business Development Solutions by FindLaw, part of Thomson Reuters