Sued for Debt in New York? Here’s What to Do.

Somebody filed a lawsuit against you in a New York court alleging that you owe money on a consumer debt — a credit card most often, sometimes a personal loan, occasionally a medical bill, an auto deficiency, or a charged-off installment loan. The packet in your hand is a Summons (the order to respond) plus a Complaint (the document explaining what they are suing you for, with attached exhibits).

New York runs four trial-level forums for consumer-debt cases. NYC Civil Court ($50,000 cap since January 2022) handles most NYC-based debt-buyer cases. Outside NYC, District Courts in Nassau and Suffolk and City Courts upstate handle similar tiers. Above $50,000, cases go to New York State Supreme Court — which is the trial-level court despite the name. Small Claims Parts inside Civil Court and the City Courts handle cases up to $10,000 with informal procedure under Civil Court Act § 1801 et seq. The first thing to identify on day one is which forum your case is in, because filing rules and deadline mechanics vary across them.

Most New York consumer-debt plaintiffs are debt buyers — companies that purchased the defaulted account in a bulk portfolio years after charge-off, paying pennies on the dollar. The 2021 Consumer Credit Fairness Act gave New York pro se defendants significant debt-defense tools: a three-year SOL on consumer credit transactions under CPLR § 214-i (effective April 7, 2022, reduced from the prior six-year limit under § 213(2)), pleading-specificity requirements under CPLR § 3016(j) (effective May 7, 2022) that operate at the complaint level, and the older 22 NYCRR Part 202.27-a affidavit-of-merit rule that operates concurrently. You have 20 days from personal service or 30 days from any other service method to file an Answer.

The deadline is set by CPLR § 320(a) and § 3012, and the rule has a 20-day-or-30-day split that catches more pro se defendants than any other single rule in New York. You have 20 days to file an Answer if you were served by personal in-hand delivery within New York State under CPLR § 308(1). You have 30 days for any other service method: substitute service on a person of suitable age and discretion at your residence under § 308(2), the affixing-and-mailing "nail and mail" method under § 308(4), service by mail under § 312-a, or any service outside New York. Most modern debt-buyer service in New York is § 308(2) suitable-age-and-discretion at your address, which gives you 30 days. Look at the affidavit of service in the court file — it specifies the CPLR § 308 subdivision used.

Calendar days, not business days. The clock runs from the date the proof of service is filed for § 308(2) and § 308(4) — not from the date of physical service. For § 308(1) personal service, the clock runs from the date of physical service. When in doubt, count from the earlier date.

What default judgment looks like in New York: judgment for the full amount claimed, plus statutory 9% interest under CPLR § 5004, plus costs. Once entered, the plaintiff can serve a wage execution under CPLR § 5231 (capped at the lesser of 10% of gross or the amount over 30× minimum wage — one of the most debtor-favorable wage rules in the country), serve a restraining notice under § 5222 (which freezes account funds, subject to the exempt-income procedure at § 5222-a protecting Social Security, public assistance, unemployment, child support, and other categories), and docket the judgment as a lien. Setting aside a default under CPLR § 5015(a)(1) requires a reasonable excuse and a meritorious defense — discretionary, often denied. Treat your effective deadline as Day 17 if you have 20 days, Day 27 if you have 30. Never the actual deadline.

New York runs four trial-level forums for consumer-debt cases. NYC Civil Court has jurisdiction up to $50,000 (raised from $25,000 effective January 2022) and is where most New York City consumer-debt cases land. Within NYC Civil Court, the Small Claims Part hears cases up to $10,000 under simplified procedure governed by Civil Court Act § 1801 et seq. New York State Supreme Court — the trial-level court despite the name — handles cases above $50,000 in NYC and is also available for any consumer-credit case the plaintiff chooses to file there. Outside NYC, District Courts in Nassau and Suffolk handle cases up to $15,000, City Courts upstate handle similar tiers, and Town and Village Justice Courts handle smaller caps.

NYSCEF (New York State Courts Electronic Filing) is mandatory for attorneys in Supreme Court and many other courts. Pro se defendants can register to e-file at nycourts.gov/efile, but practice varies — many NYC Civil Court branches still accept paper filings from pro se defendants without NYSCEF registration. Check your specific court's website before assuming one route or the other. The 22 NYCRR Part 202.27-a affidavit-of-merit rule (in force since 2014-2015) predates the CCFA and stacks on top of the CCFA pleading-specificity requirements at CPLR § 3016(j) — both rules apply concurrently to debt-buyer complaints.

A New York-specific resource for unrepresented litigants: CLARO (Civil Legal Advice and Resource Office) walk-in clinics provide free same-day legal advice to pro se defendants in consumer-debt cases. Volunteer attorneys staff CLARO clinics in Manhattan, Brooklyn, the Bronx, Queens, Staten Island, Westchester County, Nassau County, and several upstate counties. CLARO does not provide ongoing representation but is a meaningful resource for one-time consultation — the clinic will review your summons, help you understand your defenses, and review a draft Answer. The current schedule is on the New York City Civil Court website.

New York has a strong consumer-debt defense framework, and the reasons are recent and structural rather than ideological or historical. The 2021 Consumer Credit Fairness Act, with staged effective dates in 2022, created several important tools to review.

First, the CPLR § 214-i three-year SOL is one of the shortest consumer-credit limitations periods. When CCFA cut the SOL from six years to three years effective April 7, 2022, some debt-buyer portfolios that were timely under the old six-year regime became vulnerable to statute-of-limitations challenges. The effect depends on filing date, last-payment date, charge-off date, and claim type.

Second, the CPLR § 3016(j) pleading-specificity rule plus the older 22 NYCRR Part 202.27-a affidavit-of-merit rule operate at the pleading stage. A complaint with thin allegations, generic affidavits, missing chain-of-assignment specificity, no SOL non-expiration statement, or no charge-off itemization may support a CPLR § 3211(a)(3)/(7) challenge before discovery opens.

Third, the post-judgment collection regime has important debtor protections. CPLR § 5231 caps wage execution at the lesser of 10% of gross or the amount over 30× minimum wage. CPLR § 5222-a protects Social Security, public assistance, unemployment, child support, and other exempt income from bank-account restraint, with an automatic two-times-monthly-deposit protection that requires no claim form. These protections can affect collection economics and settlement posture.

Fourth, GBL § 349 may supply a counterclaim where the facts support deceptive or misleading conduct. Under CPLR § 3019, counterclaims in New York are permissive, so defendants may have flexibility about whether to plead them in the debt case or bring a separate action.

Days 1-2 — Read the summons and complaint carefully. Identify (a) the named plaintiff; (b) the alleged amount; (c) the court (NYC Civil Court for $50K and below, Supreme Court for above $50K, District Court / City Court / Town Justice Court outside NYC); (d) the index number; (e) the date you were served and the CPLR § 308 subdivision used per the affidavit of service. The § 308 subdivision determines your deadline — § 308(1) personal service gives 20 days, every other method gives 30. Calendar your deadline.

Days 3-4 — Do not ignore the lawsuit. Do not call the plaintiff. Do not pay anything — even a token partial payment can revive a stale debt under CPLR § 17. Identify which of the four main issues may apply: When was your last payment? More than three years ago? Preserve the § 214-i SOL issue after CCFA. Did the complaint plead the six § 3016(j) elements and attach the contract or charge-off statement? If not, § 3211(a)(7) motion to dismiss. Did the plaintiff file a 22 NYCRR Part 202.27-a affidavit signed by an affiant with actual knowledge? If not, affidavit-of-merit issue. Are there FDCPA or GBL § 349 violations? Then a counterclaim may be in play — and under § 3019 you can plead it here or save it for a separate action.

Days 5-10 — Gather records. Pull all three credit reports at AnnualCreditReport.com and find the original creditor name on the tradeline. Compare to the plaintiff named on the complaint — they are almost always different, and the gap is your standing issue. Save every collection letter and call log. Build a timeline of last payment, charge-off, and debt-buyer first contact.

Days 11-17 (or 11-27 if you have a 30-day deadline) — Draft your Verified Answer. Components: (a) caption matching the summons exactly with the index number; (b) admit-or-deny each numbered allegation, denying anything you cannot personally verify; (c) affirmative defenses (SOL under CPLR § 214-i; failure to plead the elements required by § 3016(j); failure to satisfy 22 NYCRR Part 202.27-a affidavit-of-merit requirements; lack of standing under Palisades Collection v. Kedik); (d) counterclaims if applicable — remember § 3019 makes counterclaims permissive, so you have flexibility about where to bring them.

Days 18-20 (or 28-30) — File your Answer. Two options: (a) take the Answer to the clerk of court for the court where the case is pending and file in person — the clerk will date-stamp your copy; or (b) register at nycourts.gov/efile to file via NYSCEF (mandatory in Supreme Court, optional in many Civil Courts for pro se). Mail or e-serve a copy on the plaintiff's attorney with an Affidavit of Service. Answered does not mail-file Answers in New York — you handle the filing yourself. Visit a CLARO walk-in clinic for same-day attorney review if you are in a covered county. File by Day 17 (or 27), never the actual deadline.