What's happening
This bill temporarily halts most money judgment enforcement and interest against individuals during the COVID-19 emergency, and exempts disaster-related government aid from debt collection.
Why it matters
Provides immediate and temporary financial relief to individuals by suspending most debt collection activities and interest accrual on judgments during the COVID-19 state disaster emergency. , which could help those experiencing sudden financial hardship avoid deeper debt and legal penalties.
Protects government disaster relief funds (such as federal stimulus checks) from being seized by creditors. , ensuring that emergency aid reaches the intended recipients to cover essential needs rather than being diverted to pay off debts.
Prevents default judgments against individuals based solely on missed payments under settlement agreements during the emergency period. , reducing the risk of long-term legal and financial consequences for those unable to keep up with payment plans due to crisis-related disruptions.
Limits exceptions to these protections to cases involving child support, spousal support, maintenance, or court-approved emergency applications. , balancing the need for financial protection with the enforcement of critical support obligations.
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Who cares
Headline styles
Pause Debt Collection During Pandemic
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Print number 8441a
- Amend (t) and recommit to judiciary
- 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.
Pause Debt Collections Pandemic
In Assembly Committee · Codes · Sponsor Latoya Joyner
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8441--A
IN SENATE
June 3, 2020
Introduced by Sen. HOYLMAN -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16481-02-0
S. 8441--A 2
to a disaster, catastrophe, public health crisis, or similar public emergency are exempt from application to the satisfaction of a money 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.
Sponsor's memo
Title of bill
An act to amend the civil practice law and rules, in relation to personal property exemptions; and to prohibit the issuance and enforce- ment of certain money judgments against a natural person, the accumu- lation 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
Purpose or general idea of bill
To provide New Yorkers with debt relief for the duration of the COVID-19 state of emergency by pausing the issuance and enforcement of money judgments, the accrual of interest on money judgments, and the entry of default judgments.
Summary of specific provisions
Section 1 establishes that no court shall issue, and no judgment credi- tor or their agent, sheriff or marshal shall enforce, a money judgment against a natural person, with limited exception: where the judgment is for child support, spousal support, maintenance or alimony, or where the court allows judgment enforcement upon an emergency application.
Section 2 establishes that no interest shall accumulate on money judg- ments against natural persons.
Section 3 establishes that no failure to comply with payment obligations by a natural person on a stipulation of settlement shall be deemed a failure to comply with the stipulation that could serve as a basis for entry of a default judgment.
Section 4 makes 100% of any federal, state or local government financial assistance made available in response to a public emergency exempt from application to the satisfaction of a money judgment.
Section 5 sets the effective date.
Justification
The devastating economic impact that the COVID-19 pandemic has already had on New Yorkers has disproportionately fallen on low- and middle-in- come New Yorkers who are experiencing virtually unprecedented rates of job loss and lost wages. Unfortunately, these impacts threaten to persist long after the state of emergency has been lifted. At a time when families across the State are struggling to afford their rent, healthcare, food and other basic necessities, they deserve relief from continued debt collection and money judgment enforcement.
This legislation would provide New Yorkers with that relief by placing a moratorium on the enforcement and issuance of most money judgments, tolling the accumulation of interest on existing money judgments, suspending the entry of new default judgments for the duration of the COVID-19 state of emergency and an additional 30 day grace period, and protecting stimulus funds from being seized by creditors.
Prior legislative history
This is a new bill.
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately and 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.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.