Default Judgment Collection Attorney in New York

Winning a lawsuit is only half the battle. When a defendant fails to respond to a properly served complaint, a New York court may enter a default judgment in your favor. But a judgment on paper does not put money in your pocket. Collecting on that judgment requires a strategic, persistent, and legally precise approach. Our New York default judgment collection attorneys help creditors, businesses, and individuals turn unpaid judgments into recovered funds.

If you are holding a default judgment that a debtor refuses to pay, you have powerful legal tools at your disposal under New York law. This page explains how default judgments work, the enforcement mechanisms available, the deadlines you must observe, and how experienced counsel can maximize your recovery.

What Is a Default Judgment in New York?

A default judgment is a court ruling entered against a defendant who fails to appear or respond to a lawsuit within the time permitted. Under the New York Civil Practice Law and Rules (CPLR) Article 32, when a defendant does not answer a complaint or otherwise defend the action, the plaintiff may apply for judgment by default.

Under CPLR 3215, a plaintiff must seek a default judgment within one year of the defendant's default. If you wait longer than one year without taking action, the court may consider the case abandoned and dismiss it. This makes prompt action essential.

To obtain a default judgment, a creditor generally must demonstrate:

Proof of valid service of the summons and complaint on the defendant
Proof of the facts constituting the claim
Proof of the defendant's default in answering or appearing
The amount due, supported by affidavit or documentary evidence

Once entered, a default judgment carries the same legal weight as a judgment obtained after a full trial. It can be enforced through every collection remedy New York law provides.

Why Collecting a Default Judgment Is Challenging

Many creditors mistakenly believe that once a court issues a judgment, payment will follow. In reality, the court does not collect the money for you. The burden of enforcement falls entirely on the judgment creditor. Debtors who failed to respond to the lawsuit in the first place are often unlikely to pay voluntarily afterward.

Common obstacles include:

Debtors who hide or transfer assets to avoid collection
Difficulty locating bank accounts, wages, or property
Debtors who relocate or become difficult to find
Competing creditors seeking the same limited assets
Statutory exemptions that protect certain debtor property

An experienced default judgment collection attorney knows how to investigate a debtor's finances, identify recoverable assets, and deploy the right enforcement tools in the correct legal sequence.

Enforcement Tools Available Under New York Law

New York provides judgment creditors with a robust set of remedies under CPLR Article 52. The right strategy depends on the debtor's circumstances, the type and location of assets, and the amount of the judgment. Below are the primary collection mechanisms.

Information Subpoenas and Debtor Examinations

Before you can collect, you need to know where the debtor's assets are located. Under CPLR 5223 and 5224, a judgment creditor may serve an information subpoena requiring the debtor — or third parties such as banks and employers — to disclose information about the debtor's income, accounts, and property.

You may also compel a debtor examination, where the judgment debtor must appear and answer questions under oath about their financial situation. These discovery tools are foundational to a successful collection effort because they reveal the targets for subsequent enforcement.

Property Executions and Asset Seizure

Under CPLR 5230, a judgment creditor may issue an execution to a sheriff or city marshal directing them to seize and sell the debtor's non-exempt property to satisfy the judgment. This can include vehicles, equipment, inventory, and other tangible assets. The proceeds of the sale are applied to the outstanding judgment.

Bank Account Restraints and Levies

One of the most effective remedies is restraining and levying a debtor's bank accounts. A restraining notice under CPLR 5222 prohibits the debtor or a bank from transferring funds up to twice the amount of the judgment. Once an account is identified, the creditor can direct a marshal or sheriff to levy the account and collect the available funds.

New York law protects certain funds from collection, including specified amounts of statutorily exempt income such as Social Security, public assistance, and certain wages. A knowledgeable attorney ensures the levy targets only collectable funds and complies with the Exempt Income Protection Act.

Wage Garnishment (Income Execution)

Under CPLR 5231, a creditor may obtain an income execution — commonly called wage garnishment — to collect a portion of the debtor's earnings directly from their employer. In New York, the amount that can be garnished is generally limited to the lesser of 10 percent of gross income or 25 percent of disposable earnings, subject to certain minimum income protections. Income execution is particularly effective against employed debtors with steady wages.

Judgment Liens on Real Property

When a default judgment is docketed with the county clerk in a county where the debtor owns real estate, it creates a lien on that property. This lien attaches to the debtor's real property and must generally be satisfied before the property can be sold or refinanced. In some cases, a creditor can force the sale of the property to satisfy the judgment, though homestead exemptions may protect a portion of the value.

Turnover Proceedings

If a third party holds property or money belonging to the debtor, a creditor may bring a turnover proceeding under CPLR 5225 or 5227 to compel that party to deliver the assets toward satisfaction of the judgment. This is a powerful tool for reaching assets that are not directly in the debtor's possession.

How Long Does a New York Judgment Last?

New York judgments are enforceable for a substantial period. Under CPLR 211(b), a money judgment is presumed paid and unenforceable after 20 years. A judgment lien against real property, under CPLR 5203, remains valid for 10 years and may be renewed for an additional 10 years.

In addition, judgments accrue statutory interest at the rate set by New York law, currently 9 percent per year for most money judgments. This means that even if a debtor delays payment, the amount owed continues to grow, and patient enforcement can yield significant recovery over time.

The Default Judgment Collection Process: Step by Step

Confirm and Docket the Judgment. Ensure the default judgment is properly entered and docketed with the appropriate county clerk to establish priority and create real property liens.
Locate the Debtor and Assets. Conduct asset investigations using information subpoenas, public records, and debtor examinations to identify bank accounts, employment, real estate, and other property.
Select the Right Enforcement Tools. Based on the asset profile, choose among bank levies, wage garnishment, property executions, real property liens, and turnover proceedings.
Execute Enforcement. Issue restraining notices, executions, and income executions through the appropriate sheriff or marshal, ensuring strict procedural compliance.
Monitor and Adjust. Track recovery, pursue additional assets if the initial efforts fall short, and renew liens or judgments as necessary.

Defending Against Motions to Vacate the Default

Debtors sometimes attempt to undo a default judgment by filing a motion to vacate under CPLR 5015 or CPLR 317. To succeed, a debtor generally must demonstrate both a reasonable excuse for the default and a potentially meritorious defense to the underlying claim. Common arguments include improper service, excusable neglect, or lack of notice.

If a debtor moves to vacate your judgment, swift and effective legal advocacy is critical. Our attorneys defend judgment creditors against vacatur motions by demonstrating proper service, the debtor's lack of a valid excuse, and the absence of a meritorious defense. Preserving the judgment is essential to continuing your collection efforts.

Collecting Against Businesses and Individuals

The collection strategy may differ depending on whether the judgment debtor is an individual or a business entity.

Individual Debtors

For individuals, wage garnishment and bank levies are often the most productive remedies. Locating employment and banking relationships is key. Real property liens may also be valuable if the debtor owns a home or other real estate.

Business Debtors

For corporations, limited liability companies, and partnerships, collection may target business bank accounts, accounts receivable, equipment, and inventory. In certain cases involving fraud or improper transfers, a creditor may pursue claims to reach assets that were diverted to avoid the judgment.

Fraudulent Transfers and Hidden Assets

Some debtors attempt to evade collection by transferring assets to relatives, business associates, or shell entities. New York's Uniform Voidable Transactions Act allows creditors to challenge transfers made with the intent to hinder, delay, or defraud creditors, or transfers made for less than reasonably equivalent value while the debtor was insolvent.

If we identify suspicious transfers, we can pursue legal action to void those transactions and recover the assets for the benefit of your judgment. Detecting and unwinding fraudulent transfers requires careful investigation and aggressive litigation.

Why Work With a Default Judgment Collection Attorney

Collection law in New York is procedurally complex. A single misstep — an improperly served restraining notice, a missed deadline, or a levy on exempt funds — can delay recovery, expose you to liability, or jeopardize your judgment. Working with a skilled attorney offers several advantages:

Asset Investigation Resources. We have the tools and experience to locate hidden bank accounts, employment, and property.
Procedural Precision. We ensure that every enforcement action complies with the CPLR and applicable exemption laws.
Strategic Sequencing. We deploy collection remedies in the most effective order to maximize and accelerate recovery.
Aggressive Advocacy. We defend your judgment against motions to vacate and pursue fraudulent transfer claims when necessary.
Persistence. Because New York judgments last for years and accrue interest, we maintain pressure on debtors until the judgment is satisfied.

Common Questions About Default Judgment Collection

How quickly can I begin collection after a default judgment is entered?

Generally, you can begin enforcement promptly once the judgment is entered and docketed. Acting quickly is important because debtors may dissipate assets if given time.

What if the debtor has no money or assets?

If a debtor currently has no collectable assets, the judgment remains enforceable for up to 20 years and continues to accrue interest. We can monitor the debtor's financial situation and renew enforcement efforts when assets become available.

Can I collect attorney's fees and costs?

In many cases, the costs of enforcement, statutory interest, and certain fees can be added to the amount owed. The recoverability of attorney's fees depends on the underlying contract or statute that supports the judgment.

What if the debtor files for bankruptcy?

A bankruptcy filing triggers an automatic stay that halts most collection activity. The treatment of your judgment will depend on the type of bankruptcy and whether the debt is dischargeable. We can advise you on protecting your interests in that scenario.

Take Action to Collect What You Are Owed

A default judgment is a valuable asset — but only if you enforce it. Every day that passes is an opportunity for a debtor to move money, transfer property, or become harder to find. With New York's one-year deadline to enter certain judgments and the substantial enforcement window that follows, timely and strategic action makes all the difference.

Our New York default judgment collection attorneys are committed to helping creditors recover what they are rightfully owed. We handle every stage of the process, from confirming and docketing the judgment to locating assets, executing levies and garnishments, and defending your judgment against challenges.

If you are holding an unpaid default judgment in New York, contact our office today to schedule a consultation. We will evaluate your judgment, assess the debtor's potential assets, and develop a tailored enforcement strategy designed to maximize your recovery under New York law.

You can contact us by phone at 212-233-1233 or by email at [email protected].