Alliance Settlement helps New York residents negotiate unsecured debts like credit cards, personal loans and medical bills down to an amount they can afford. Before you decide, it helps to know how New York handles lawsuits, garnishment and old debts.
| New York debt facts at a glance | |
|---|---|
| Statute of limitations (credit cards) | 3 years |
| Wage garnishment for consumer debt | Up to 10% |
| Notable protection | Bank account protection |
New York's statute of limitations on debt
Since 2022, New York gives creditors just 3 years to sue on consumer credit debt, and a payment doesn't restart the clock. An expired statute of limitations is a defense you usually have to raise in court, so never ignore a lawsuit, even on an old debt.
Can creditors garnish your wages in New York?
New York limits wage garnishment to 10% of gross income, and 90% of recent wages is exempt. Garnishment requires a court judgment first, which is one reason resolving debts before a lawsuit matters.
Other New York consumer protections
New York automatically protects a set amount in bank accounts from debt collectors ($4,080 in New York City, Long Island and Westchester; $3,840 elsewhere in 2026).
How debt relief companies are regulated in New York
New York regulates budget planners and applies strong consumer protection and debt collection rules. Under federal rules, debt settlement companies that sell services by phone can’t charge fees until they’ve settled or changed at least one of your debts and you’ve made a payment under that agreement. Ask any company how it is licensed or authorized to serve New York residents, and get every term in writing.
How debt settlement works with Alliance Settlement
- Talk to us. A no-obligation call to understand your situation.
- One monthly deposit. Instead of juggling several payments, you set aside one program deposit.
- Creditor negotiations. We work account by account toward reduced payoffs.
- Written settlements. You approve each settlement before it’s paid, and receive written confirmation.
Settlement isn’t right for everyone. It can affect your credit and may have tax consequences on forgiven amounts. Learn more in does debt settlement hurt your credit?, or get a free consultation.
Frequently asked questions
How long can a creditor sue me for credit card debt in New York?
Since 2022, New York gives creditors just 3 years to sue on consumer credit debt, and a payment doesn't restart the clock. Keep in mind the clock limits lawsuits, not collection calls or credit reporting. Before paying on an old account, find out whether it's past the deadline.
Can my wages be garnished for credit card debt in New York?
New York limits wage garnishment to 10% of gross income, and 90% of recent wages is exempt.
Will debt settlement hurt my credit?
Usually yes at first, mostly because of missed payments during the program, but scores often begin to recover after accounts are resolved. Read our guide: does debt settlement hurt your credit?
Does Alliance Settlement work with New York residents?
Yes. Alliance Settlement works with clients throughout New York, including New York City, Long Island, Westchester and Buffalo, by phone and online.
This page provides general information, not legal or tax advice. Laws change; consult a qualified professional about your situation.