Select your state

Creditor / Debtor

lawsuit to collect debt

Lawsuits to collect debts are usually filed in state courts—and may be filed in small claims courts, depending on the amount of the debt and the small claims court’s jurisdictional limits (the maximum amount of a claim that can be filed in the court).

In New York, lawsuits to collect debts are typically filed in the civil courts, with the court venue depending on the amount of the debt. For smaller debts, creditors may file a case in small claims court, which is designed to be a simpler and faster process for resolving disputes involving smaller amounts of money. As of the knowledge cutoff in 2023, the jurisdictional limit for small claims courts in New York City is up to $10,000, while outside of New York City the limit is generally $5,000. Claims exceeding these amounts would need to be filed in the appropriate civil court, such as the City Court, District Court, or the Supreme Court, depending on the amount of the debt and other factors. It's important for debtors to respond to such lawsuits to avoid default judgments, which can lead to wage garnishment, bank levies, and other collection actions.

Legal Articles

State Statutes

Individual & Family Legal Plan

As a LegalFix member, you'll get expert legal services from a local law firm that treats you like an important client. Don't wait—be prepared for life's inevitable legal challenges starting today. And ask your employer, credit union, or membership group about preferred pricing opportunities.

Creditor / Debtor

lawsuit to collect debt

Individual & Family Legal Plan

Articles

New-York State Code

New-York State Code

Creditor / Debtor

lawsuit to collect debt

Articles