Practical analysis of New York litigation and enforcement — written for the businesses and property owners who live with the consequences.
Insights are general information, not legal advice, and do not create an attorney-client relationship. Every matter turns on its own facts — if yours is time-sensitive, contact the firm directly.
The 9% Problem: why time is on the creditor's side in New York.
Every unpaid New York judgment grows at nine percent a year — one of the highest statutory rates in the country. Debtors who stall are not saving money. They are compounding the bill.
Under CPLR 5004, a money judgment entered in New York accrues simple interest at nine percent per annum from the date of entry until the day it is paid. That rate is not negotiable, it does not track the market, and no court order is needed to trigger it. It runs automatically — weekends, holidays, and bankruptcies-that-never-get-filed included.
Interest often starts running before judgment. In contract and property-damage cases, CPLR 5001 awards pre-judgment interest from the date of the breach itself. A debtor who defaulted three years before trial owes three years of nine percent before the judgment is even entered.
What this means if you are owed money
The 9% rate converts a stalling debtor into a paying investment — but only if the judgment is ultimately collectable. Interest on a judgment against an empty shell is nine percent of nothing. That is why we assess collectability before the first filing: identify the debtor's accounts, property, and income streams, then let the statute do quiet work in the background while enforcement proceeds. A debtor who realizes the meter is running frequently returns to the table with a better number than the one they rejected a year earlier.
What this means if you owe
Ignoring a judgment is the single most expensive strategy available. Every quarter of delay adds real money, and enforcement tools — restraints, levies, income executions — arrive on the creditor's schedule, not yours. Negotiating early, while the number is smallest and before enforcement costs are added, is almost always the cheaper path.
One caveat: since 2022, judgments arising from consumer debt accrue interest at two percent, not nine. Commercial judgments — business debts, guaranties, unpaid invoices between merchants — remain at the full nine percent.
CPLR Article 52 in plain English: the creditor's toolbox.
Winning the case is half the job. Article 52 of New York's Civil Practice Law and Rules is the machinery that turns a judgment into money — and most of it works without ever going back before a judge.
The restraining notice — CPLR 5222
A one-page document, served by the attorney without court involvement, that freezes up to twice the judgment amount in the debtor's bank account. The bank must comply. It is usually the first — and often the decisive — enforcement move: a debtor whose operating account has stopped moving tends to call back quickly. Certain funds are exempt (Social Security, most wages already received, and a statutory cushion under CPLR 5222-a).
The information subpoena — CPLR 5224
You cannot levy on assets you cannot find. Information subpoenas compel banks, employers, business partners — and the debtor personally — to answer written questions about what the debtor owns and where it sits. Non-compliance is punishable as contempt. This is how a “we have no idea what he owns” case becomes a map of accounts, receivables, and property.
Execution and the sheriff's levy — CPLR 5230, 5232
Once assets are located, an execution directs the sheriff or marshal to seize them — bank balances, vehicles, equipment, even the contents of a cash register. Restrained funds are turned over; tangible property can be sold at auction. The creditor's attorney issues the execution; the sheriff does the collecting.
The income execution — CPLR 5231
For debtors with a paycheck rather than a bank balance, an income execution garnishes up to ten percent of gross wages, paid straight from the employer until the judgment — plus its nine percent interest — is satisfied. It is slow but relentless, and it survives job changes with re-service.
The turnover proceeding — CPLR 5225, 5227
When the debtor's property is in someone else's hands — a bank, a business partner, a relative holding transferred assets — a special proceeding compels that third party to turn it over directly to the creditor. This is also the vehicle for unwinding fraudulent transfers made to dodge the judgment.
The real-property lien — CPLR 5203
Docketing the judgment with the county clerk places a ten-year lien on any real estate the debtor owns in that county. The debtor cannot sell or refinance without paying you first — and the lien can be renewed. A New York money judgment itself is enforceable for twenty years.
The sequence matters more than any single tool: restrain first so nothing moves, subpoena to find what exists, then levy, garnish, or turn over what the discovery revealed. Full statutory text for each provision is in our Statutes Reference.
Common questions from creditors.
How long do I have to collect a New York judgment?+
Twenty years from entry. A lien on real property lasts ten years and can be extended. Old judgments are frequently still worth enforcing — with two decades of 9% interest attached.
Is it too late to sue on an old unpaid invoice?+
New York's statute of limitations on contract claims is six years from the breach. Partial payments or written acknowledgments of the debt can restart the clock. If you are near the line, act now — the deadline is unforgiving.
The debtor moved to New Jersey. Is my judgment worthless?+
No. A New York judgment can be domesticated in New Jersey (and vice versa) and enforced there with that state's tools. We are admitted in both states, so the handoff happens inside one firm.
The debtor's company closed. Can I still recover?+
Sometimes. Personal guaranties, successor entities running the same business under a new name, and assets transferred out before the shutdown can all be reached. Fraudulent-transfer law exists precisely for the debtor who empties the company and walks away.
What does enforcement cost me upfront?+
In most collection matters we work on contingency — the firm is paid from what it recovers, not from your pocket. Where a matter does not fit contingency, we say so at the free consultation, before you spend anything.
Can I recover my attorney's fees too?+
Only if your contract, guaranty, or a statute provides for it — New York follows the American rule otherwise. This is one reason we review your paperwork before filing: a fee clause changes the economics of the whole case.
What if the debtor files for bankruptcy?+
Enforcement pauses under the automatic stay, but the claim does not vanish — we file a proof of claim, monitor the case, and challenge discharge where fraud is involved. Many bankruptcy threats are bluffs; a debtor with assets rarely wants to put them in front of a trustee.
A commercial litigation and collections law firm in Cedarhurst, New York — serving Nassau County, Kings County, the Five Towns, New York City, and New Jersey.
© 2026 Aryeh Law Group PLLC. All rights reserved. Attorney Advertising. This website is for informational purposes only and does not constitute legal advice. Contacting the firm does not create an attorney-client relationship. Prior results do not guarantee a similar outcome. Mordy Aryeh, Esq. is licensed in New York and New Jersey.