It may have been almost 20 years since you sued and entered your New York debt collection judgment, but you haven’t collected any monies. Since the judgment is set to expire, can your New York judgment get an extension past the deadline?
New York State judgments are valid for 20 years. A judgment can act as a lien on real property for ten years which may be extended for an additional term if you to take affirmative action. Our prior article explaining how to extend your New York debt collection judgment lien details the steps needed to extend the lien period past the initial ten years afforded by the judgment.
But what happens when the judgment and lien expire?
The presumption in New York is the monies are paid, and judgment satisfied at the end of the 20-year period.
What if that’s not the case?
New York is generous in that state law provides two judgment extension options past 20 years.
Judgment Extension Option One
Using New York Civil Practice Law and Rules, section 211(b), you can seek an acknowledgment of the debt in writing by the named judgment debtor or payment towards the judgment — which may include property — either voluntarily paid by the judgment or by a representative of the debtor or by way of execution. Monies taken without the judgment debtor’s cooperation can go towards the indebtedness owed on account of the judgment.
What happens if the debtor has not acknowledged the debt in writing? Perhaps they have made themselves judgment-proof or you haven’t tried to collect the judgment. What happens then when the presumption is wrong and you haven’t been paid? Are you out of luck or can you extend the judgment?
Judgment Extension Option Two
You can bring a new action on the original judgment. It doesn’t matter whether or not payment occurred as long as the judgment debtor acknowledges it.
Proceeding under this section allows you to start a new case on the judgment provided the action occurs after the initial ten year lien period expires but before the 20-year judgment does.
If successful, the court will grant a “new” judgment based on the old judgment. You gain a new lien period of 10 years with the new judgment.
How Does This Apply in the Real World?
Take for example a creditor who sues a borrower. The borrower owns a home but does not have enough equity to sell it. The creditor sues the borrower in the state Supreme Court and obtains a judgment against the borrower, now a judgment debtor homeowner. The judgment debtor owns nothing other than his or her home.
Although the judgment creditor’s judgment became a lien for 10 years, they may have made an application (or not) to extend the lien for an additional 10 years.
Now that they are coming up on almost 20 years, the judgment creditor makes an application to renew the judgment based on option 2 above. The court grants the application and issues the judgment creditor a “new” judgment and a new lien period of 10 years. The lien attaches to the property. After 25 years — 20 years on the old judgment and five on the new one — the judgment debtor pays off their 25-year mortgage. The debtor now seeks to refinance or sell the property since they have equity.
At this point, the judgment appears in the title search as the debtor has to satisfy the lien on the property before they can sell or refinance. By extending the judgment, your judgment together with legal interest will be satisfied!
Have questions about a debt collection matter? Contact Frank, Frank, Goldstein and Nager for a consultation.
FAQs
How long is a Judgment Valid For? A judgment is valid for twenty (20) years and may be extended once for an additional period of ten (10) years. To extend a judgment for an extra ten (10) years, the Judgment Creditor must make written application to the City Court.
What is the statute of limitations on a money Judgement in NY? ›
A money judgment is presumed to be paid and satisfied after the expiration of twenty years from the time when the party recovering it was first entitled to enforce it.
Can a Judgement be renewed after it expires near New York NY? ›
Judgment Extension Option Two
Proceeding under this section allows you to start a new case on the judgment provided the action occurs after the initial ten year lien period expires but before the 20-year judgment does. If successful, the court will grant a “new” judgment based on the old judgment.
Do Judgements ever expire? ›
Money judgments automatically expire (run out) after 10 years. To prevent this from happening, you as the judgment creditor must file a request for renewal of the judgment with the court BEFORE the 10 years run out.
How long after judgment can you enforce? ›
Collecting the Judgment 30 days after the debtor was served you can obtain a Writ of Execution (EJ-130). If the debtor does not file a motion to vacate the judgment in those 30 days, then your California judgment is finalized and you can begin collecting.
Do Judgements expire in NY? ›
How long is a Judgment Valid For? A judgment is valid for twenty (20) years and may be extended once for an additional period of ten (10) years.
Do judgment liens expire in New York? ›
A judgment lien is valid for ten years. N.Y. C.P.L.R. § 5203.
What happens if a defendant does not pay a judgment in NY? ›
If the Judgment Debtor, the party who lost during the trial, does not pay you voluntarily, you may contact an enforcement officer. The enforcement officer will either be a Sheriff who works for the County or a City Marshal who is independent. For a list of enforcement officers visit the Resources page.
What is exempt from a Judgement in New York? ›
The following kinds of personal property are exempt from collection and cannot be seized by a Marshal: (1) household goods such as appliances, clothing, or furniture; (2) necessary medical equipment, like wheelchairs; (3) one each of a cell phone, radio, computer, and television; (4) personal items such as art or ...
How can a Judgement be removed in NY? ›
In a Nutshell
But you can have this judgment vacated or removed. To do so, you need to have a reasonable excuse for not appearing in court and a defense to the allegations against you. You also have grounds to vacate if the person suing you didn't properly serve the required documents.
The Lifespan of a Judgment
For instance, in California, commercial money judgments typically last for ten years, while in New York, they can last up to twenty years. This variance underscores the importance of being aware of state-specific laws. In California, consumer or retail judgments may only last five years.
What is a dormant judgment? ›
What is a Dormant Judgment? After the time frame defined in a jurisdiction, a judgment expires. After a judgment expires, it becomes dormant. This means the plaintiff or creditor has waited too long to take action to collect on the judgment.
What is a renewal of Judgement? ›
Money judgments automatically expire after 10 years. Once a judgment expires, it is no longer enforceable, and the judgment creditor is not able to collect any unpaid judgment amounts. To prevent this from happening, the judgment creditor must renew the judgment before the 10 years run out.
Can you settle with a debt collector after Judgement? ›
You may be able to negotiate a settlement with the debt collector to allow you to pay off the judgment under better terms. In Limited Civil cases (cases for $35,000 or less), if the other side will not agree to a payment plan, you can ask the judge to order a payment plan.
What is the rule 62 stay of proceedings to enforce a judgment? ›
(a) Automatic Stay. Except as provided in Rule 62(c) and (d), execution on a judgment and proceedings to enforce it are stayed for 30 days after its entry, unless the court orders otherwise. (b) Stay by Bond or Other Security.
Is it guaranteed that any Judgement will be enforceable? ›
The correct answer is b) False. The statement that any judgement will be enforceable is not guaranteed to be true. When a court issues a judgment, it does not automatically mean that the judgment will be enforced.
How long do you have to file a default Judgement in NY? ›
The defendant must submit to the clerk the necessary papers and the clerk enters a judgment for costs (CPLR 3215(a); see Plaintiff's Default During the Litigation: Necessary Papers). The defendant must apply to the clerk for a default judgment within one year of the plaintiff's default (CPLR 3215(a)).
Can you go to jail for not paying a Judgement in NY? ›
The only cases where someone goes to jail for debt issues is where they commit tax fraud; fail to respond to a court order or subpoena in a debt case; or fail to pay child support or court fines and restitution. If a debt collector is threatening you with jail, this may be against the law.
What personal property can be seized in a Judgement in New York? ›
In New York, a judgment lien can be attached to the debtor's real estate -- meaning a house, condo, land, or similar kind of property interest. In addition, New York allows judgment liens on the debtor's personal property -- things like jewelry, art, antiques, and other valuables.
What crimes don't have statute of limitations in NY? ›
No Statute of Limitations
- Class A felonies, including the following: Murder (first and second degree) Arson (first degree) Conspiracy (first degree) ...
- Rape (first degree)
- Aggravated Sexual Abuse (first degree)
- Course of Sexual Conduct Against a Child (first degree)
It may have been almost 20 years since you sued and entered your New York debt collection judgment, but you haven’t collected any monies. Since the judgment is set to expire, can your New York judgment get an extension past the deadline?