Every day, distressed New Yorkers learn their wages have been garnished and their bank accounts frozen. For too many people, this unsettling event is their first notice that a debt collection lawsuit has been filed against them and that a judgment exists against them.
Adding insult to injury, the alleged debt has now swelled to an unrecognizable amount. Why? Because in New York, creditors can enforce judgments for 20 years and can charge a shocking 9% interest rate on them.