What's happening
This bill temporarily bans most money judgments and interest against individuals during the COVID-19 emergency and protects disaster assistance from collection.
Why it matters
Protects individuals from new or enforced money judgments during the COVID-19 emergency. , except for specific cases like child or spousal support, or if a court finds an emergency reason to allow enforcement. This provides broad financial relief to people facing hardship during the pandemic.
Suspends the accumulation of interest on most money judgments against individuals. during the emergency period, preventing debts from growing larger simply because of financial hardship caused by the crisis.
Prevents default judgments based on missed payments on settlement agreements. if the defendant is an individual, meaning that failing to make payments due to COVID-19-related financial strain won’t automatically lead to a default judgment.
Explicitly exempts all federal, state, and local disaster-related financial assistance from being collected to satisfy money judgments. , including stimulus payments and similar aid, ensuring that relief funds reach those in need rather than being seized by creditors.
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Pause Debt Collections Pandemic
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to codes
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.
Pause Debt Collection During Pandemic
In Senate Committee · Judiciary · Sponsor Brad Hoylman-Sigal
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
11054
IN ASSEMBLY
October 7, 2020
Introduced by COMMITTEE ON RULES -- (at request of M. of A. Joyner) -read once and referred to the Committee on Codes
AN ACT to amend the civil practice law and rules, in relation to personal property exemptions; and to prohibit the issuance and enforcement of certain money judgments against a natural person, the accumulation of interest on certain money judgments against a natural person, and the entry of certain default judgments during the period of the COVID-19 state disaster emergency; and provides for the repeal of certain provisions upon expiration thereof
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Notwithstanding the provisions of sections 5222, 5230, 5232, and 5233 of the civil practice law and rules or any other provision of law to the contrary, no court shall issue, and no judgment creditor, sheriff, marshal or other agent of the judgment creditor shall enforce, a money judgment against a natural person, except where the judgment is for child support, spousal support, maintenance, or alimony, or where the court has, in its discretion, allowed judgment enforcement upon a judgment creditor's emergency application.
§ 2. Notwithstanding the provisions of section 5004 of the civil practice law and rules and any other provision of law to the contrary, no interest shall accumulate on money judgments against natural persons.
§ 3. Notwithstanding the provisions of section 3215 of the civil practice law and rules and any other provision of law to the contrary, where the defendant is a natural person, no failure to comply with payment obligations on a stipulation of settlement made after commencement of an action shall be deemed a failure to comply with the stipulation that could serve as a basis for entry of a default judgment.
§ 4. Section 5205 of the civil practice law and rules is amended by adding a new subdivision (p) to read as follows:
(p) One hundred percent of any federal, state, or local government financial assistance made available to individuals in express response to a disaster, catastrophe, public health crisis, or similar public emergency are exempt from application to the satisfaction of a money
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16481-03-0
A. 11054 2
judgment. Such financial assistance includes but is not limited to monies made available under section 2201 of the federal Coronavirus Aid, Relief, and Economic Security Act of 2020 and any other federal, state, or local government financial assistance made available to individuals in express response to the COVID-19 pandemic.
§ 5. This act shall take effect immediately; provided that sections one, two and three of this act shall expire and be deemed repealed thirty days following the end of the state disaster emergency declared by executive order 202 of 2020, as amended.
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.