New York Debt Relief

New York State, with approximately twenty million residents, represents the fourth highest population in the United States, despite it being only the 27th largest state by size. Over 40% of that population resides in New York City, whose population continues to hit record highs that approached 8.6 million as of early 2017. New York State’s economy, driven by New York City’s status as the leading financial center of the world, boasts a gross state product of just under $1.5 trillion, a level that would place it among the twelve highest countries in the world. New York State’s median household income level of $60,850 also checks in at a level that is 9% higher than the national average median household income of $55,075.

More New York State Economic Statistics

According to the Bureau of Labor Statistics, the unemployment rate for New York State stood at 4.8% as of October 2017, notably higher than the national unemployment rate of 4.1%. New Yorkers also carry more credit card debt than do most citizens of other states, checking in at an average level of $7,122 in credit card debt, compared with the national average of $5,700

More New York State Economic Statistics

Unemployment Rate

1 %

Average Credit Card Debt

$ 1

Home Ownership Rate

1 %

Average FICO Score

Furthermore, home ownership within New York State is far less common than in the rest of the country, where 63% of all residents own a residence. However, New York State shows a home ownership rate of only 53% that is heavily weighed down by the abysmally low 31% home ownership rate of NY city residents. Given the state’s higher unemployment rate and credit card debt levels relative to the rest of the nation, it makes sense that the typical New Yorker’s credit profile is not quite as strong as that of the average United States citizen. Accordingly, despite a 2016 nationwide average FICO score of 699, the typical New Yorker’s FICO score came in a bit lower, at 680.

New York State Statute of Limitations on Debt Collection

Furthermore, when enough time passes in a situation in which consumer debts have gone unpaid, a debt collector can lose the legal right to sue for non-payment. In New York State, the statute of limitations for collecting on all debts is six years. This statute of limitations applies to all debts – written contracts, promissory notes, and open-ended accounts – including credit cards.

The clock on the six-year time period starts ticking from the “date of default,” which is typically thirty days after the last payment was actually made. However, it follows that if your unpaid debts remain unpaid and the full six years have yet to elapse, your creditors maintain legal right to sue you for non-payment and are permitted to engage debt collection agencies who can make persistent attempts at collection within the bounds of the New York State Debt Collection Procedures Law.

Debt Collection in New York State

If you’re a New York State resident and are feeling the pressure that comes with mounting debt levels, you have rights. Credit Card companies and other creditors are permitted to contact New York State residents directly regarding debts, particularly in a situation involving delinquent payments. However, creditors and debt collection agencies are required to comply with the New York State Debt Collection Procedures Law and are prohibited from taking certain actions.

These prohibited actions include informing employers about the debt or attempting to collect a fee in excess of any debt owed. Creditors and debt collection agencies are also prohibited from communicating in a manner that simulates a judicial process or gives the appearance of a governmental action, and they cannot threaten to take an action that they would not ordinarily undertake. Finally, creditors and debt collection agencies are prohibited from contacting debtors or debtor family members at unusual hours or with a frequency that may be reasonably construed under the law as harassment or abuse.

New York State Residents and Debt Settlement

If you are a resident of New York State and are currently burdened by high levels of unsecured debt – including credit card accounts, private student loans and unpaid medical bills – the process of pursuing debt settlement may make sense for you. Debt settlement occurs when a debtor successfully negotiates a payoff amount for less than the total balance owed on a debt. This lower amount is agreed to by the creditor or collection agency and is fully documented in writing. Ideally, this lower negotiated amount is paid off in one lump sum, but it can be paid off over time.

Though creditors are under no legal obligation to accept debt settlement offers, negotiating and paying lower amounts to settle debts is far more common than many people may realize. Decide whether you possess the background, wherewithal and fortitude to negotiate directly with creditors yourself, or whether engaging the services of an experienced and reputable debt settlement company will serve your needs best. Remember, the goal is to save the most money and time while minimizing any damage to your credit profile as best as possible.

A reputable debt settlement company will provide a realistic estimate and time frame for making offers to creditors that can ultimately result in settlements that save you significant amounts of money. At United Settlement, our experienced credit counselors possess relationships with the major credit card lenders, along with an understanding of the marketplace, that can help you navigate these waters effectively.

Debt Resources & Additional Reading

New York Debt Settlement FAQ

Does united settlement help with debt settlement in New York

Yes, if you are a New York resident and currently burdened by high levels of unsecured debt – including credit card accounts, personal loans, unpaid medical bills and private student loans, United Settlement can assist you with the process of pursuing debt settlement. Debt settlement occurs when a debtor successfully negotiates a payoff amount for less than the total balance owed on a debt. Contact us here at United Settlement, where our experienced credit counselors possess relationships with the major credit card lenders and a broad understanding of the debt marketplace. We can help you achieve the peace of mind that comes with living a debt-free lifestyle.

Does united settlement offer debt consolidation services in New York?

Yes, United Settlement offers debt consolidation services in the state of New York. The process of debt consolidation involves combining and paying off multiple debts with one single loan, typically resulting in a lower blended interest rate and monthly payment. Debt consolidation provides the dual benefits of streamlining the repayment process while simultaneously lowering interest expense and the total amount repaid over time.

Can debt collectors garnish your wages in New York

Debt collectors can garnish wages in the state of New York, but only after suing a delinquent debtor and successfully obtaining a court judgment that allows for wage garnishment within certain restrictions. In New York, a creditor can garnish 10% of gross wages or 25% of the amount of disposable income that exceeds 30% of minimum wage.

Am I responsible for my spouse's debts in New York?

The responsibility for spousal debt largely depends on where a couple has lived – whether the state is a “community property” state, or an “equitable distribution” state. Since New York is an equitable distribution state, debts incurred by one spouse remain that spouse’s debts alone – unless the debt relates to a family necessity – such as shelter, food, and tuition. Additionally, all accounts with both spouse’s signatures attached are jointly liable by both spouses for any accompanying debts.

Is an income execution order an estate debt in New York

An income execution order can be levied to resolve tax debt in the state of New York, and in the event of a decedent with outstanding tax debt, the personal representative of the estate will be responsible for seeing that an income execution order on the estate’s assets is met.