What's happening
This bill increases the penalty to $500 for failing to file satisfied court judgments of $5,000 or more within twenty days.
Why it matters
This bill raises the financial consequences for judgment creditors. who fail to file proof with the court that a judgment of $5,000 or more has been paid, increasing the penalty from $100 to $500. This change especially matters for anyone who has paid off a large debt and needs their court records cleared to avoid ongoing negative effects (like bad credit or continued collection efforts).
The penalty targets judgment creditors (often debt collectors, landlords, or businesses). , giving them a stronger incentive to promptly update records when debts are paid. This reduces the risk that individuals who’ve satisfied debts remain listed as owing, which can impact their finances, employment, and housing opportunities.
The law continues to exempt cities with over one million people (like New York City). from automatic penalties, unless the debtor sends a certified written demand first. This preserves a procedural step for high-volume municipal creditors, balancing administrative burden with debtor protections.
By distinguishing between debts above and below $5,000. , the law recognizes the greater stakes for larger judgments, aiming to ensure that the resolution of significant debts is reflected quickly and accurately in public records, thereby promoting fairness and transparency in civil justice outcomes.
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Who cares
Headline styles
Increase Judgment Filing Penalties
Plain English, a few words. Used as the page title.
Sponsors
History
- Substituted by S2719
- Ordered to third reading cal.47
- Substituted by S2719
- Advanced to third reading cal.276
- Reported
- Reported referred to codes
- Referred to judiciary
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Increase Judgment Penalty Fees
Signed by Governor · Sponsor Liz Krueger
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1026
2019-2020 Regular Sessions
IN ASSEMBLY
January 14, 2019
Introduced by M. of A. L. ROSENTHAL, PERRY, WEPRIN, SEAWRIGHT -- read once and referred to the Committee on Judiciary
AN ACT to amend the civil practice law and rules, in relation to increasing penalties for failure to execute and file satisfied judgments of $5,000 or more with the court clerk
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision (c) of section 5020 of the civil practice law and rules, as amended by chapter 575 of the laws of 1975, is amended to read as follows:
(c) When [the] a judgment for less than five thousand dollars is fully satisfied, if the person required to execute and file with the proper clerk pursuant to subdivisions (a) and (d) [hereof] of this section fails or refuses to do so within twenty days after receiving full satisfaction, then the judgment creditor shall be subject to a penalty of one hundred dollars recoverable by the judgment debtor pursuant to [Section 7202 of the civil practice law and rules] section seventy-two hundred two of this chapter or article eighteen of either the New York City civil court act, uniform district court act or uniform city court act. When a judgment for five thousand dollars or more is fully satisfied, if the person required to execute and file with the proper clerk pursuant to subdivisions (a) and (d) of this section fails or refuses to do so within twenty days after receiving full satisfaction, then the judgment creditor shall be subject to a penalty of five hundred dollars recoverable by the judgment debtor pursuant to section seventy-two hundred two of this chapter or article eighteen of either the New York city civil court act, uniform district court act or uniform city court act; provided, however, that such [penalty] penalties shall not be recoverable when a city with a population greater than one million persons is the judgment creditor, unless such judgment creditor shall fail to execute and file a satisfaction-piece with the proper clerk pursuant to
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02594-01-9
A. 1026 2
subdivisions (a) and (d) [hereof] of this section within twenty days after having been served by the judgment debtor with a written demand therefor by certified mail, return receipt requested.
§ 2. This act shall take effect on the one hundred twentieth day after it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.