How to Get a New York Debt Paid

To collect a bill in New York, you need street smarts, a plan, and often the help of a debt collection lawyer.  Here are some of the most important law terms you should know about debt collection in New York from a New York collection attorney.

Debt

A creditor is someone or something that is due money.  Usually, a creditor gives a borrower something of value, like money or services, in exchange for the borrower's promise to repay the creditor.  Most of the time, when you pay back a loan, you also have to pay interest.  Credit card companies, banks, and any other person or business that loans money are all examples of creditors.  But businesses like doctors, lawyers, and accountants who offer assistance in return for an obligation to pay are also debtors.

• A protected debt is a loan or debt that is backed by something of value.  Collateral is something of value that a lender takes as a settlement if the loan is not paid.  Mortgages backed by real estate and car loans are good examples of protected debts.
• Unsecured debts are protected by an obligation to be reimbursed later in time, but they do not have any collateral to back them up.  Unsecured debts are things like credit card debt and hospital bills.

If you owe money in New York and have not paid it back, the best thing to do is give it to a collecting agency. They will try to get what is owed.  Your debt could also be sold to another company by your collectors in New York.  In New York, it is allowed to buy and sell debts.  Several organizations in New York buy old bills and try to get their money back.  These companies take over the role of the main New York collector and have to file bills correctly and treat clients equally.

The creditor can go to court to get the rest if a bill is not paid.  In New York, you have six years to file a case to get the money you owe back from the day of default.  A month or so after the previous payment was made is the default date.  But if you have credit card debt, you may only have three years to pay it off from the first day of failure.

If the creditor gets a judgment, he or she only has twenty years to collect on the ruling.

If your New York business has bills that have not been paid, it is often a good idea to talk to an expert in New York. They can help you determine the best way to get your money back.