## Commercial collections in New York **Commercial collections** is the process of recovering business-to-business debts. New York businesses face unique challenges + opportunities — including statutes of limitations, jurisdictional issues, judgment enforcement, and specific collection laws. ## Pre-litigation collection **Common steps:** **Demand letter:** - Specific demand for payment - Specific deadline - Consequences if not paid - Document trail - Often resolves cases **Phone collection:** - Direct contact with debtor - Specific procedures - Document conversations - Specific compliance **Statement of account:** - Detailed billing history - Specific charges - Specific to debt - Documentary evidence **Collection agency:** - Hire third-party - Specific to claim - Specific fees - Specific compliance **Settlement negotiation:** - Discount for prompt payment - Specific terms - Payment plans - Specific to circumstances ## FDCPA does NOT apply to original creditors **Important distinction:** **FDCPA covers:** - Third-party debt collectors - Specific to consumer debts - Specific procedures - Specific protections **Does NOT cover:** - Original creditors collecting own debts - Commercial debts (B2B) - Specific exemptions - Limited applicability **State laws may apply:** - ${s.name} specific commercial collection laws - Specific protections - Specific procedures - Specific to ${s.name} ## Statutes of limitations **${s.name}-specific:** **Written contracts:** - Generally 4-15 years - Specific to ${s.name} - From breach typically - Specific accrual rules **Oral contracts:** - Generally shorter - 2-6 years typical - Specific to ${s.name} - Written preferred **Open accounts:** - Generally 3-6 years - From last activity typically - Specific to ${s.name} - Account-stated principles **UCC sales of goods:** - 4 years (UCC § 2-725) - Specific to UCC application - Federal preemption - Specific procedures **Promissory notes:** - Specific terms - ${s.name} specific - Specific accrual - Specific to instrument ## Jurisdiction issues **Where to sue:** **Personal jurisdiction:** - Where defendant lives / does business - Long-arm statute application - Specific contacts - Specific to facts **Subject matter jurisdiction:** - State vs federal - Amount in controversy - Specific procedures - Specific to ${s.name} **Venue:** - Specific county / district - Specific to circumstances - Specific to contract provisions - Specific procedures **Forum selection clauses:** - Often in contracts - Generally enforceable - Specific to circumstances - Specific procedures ## Litigation process **Standard collection lawsuit:** **1. File complaint:** - Specific allegations - Specific damages - Specific to debt - Specific procedures **2. Service:** - Personal service typically - Specific procedures - ${s.name} specific - Specific to defendant type **3. Default or answer:** - Default if no answer - Specific deadlines - Specific procedures - Default judgment available **4. Discovery (if answered):** - Specific to circumstances - Often limited in collection - Specific procedures - Specific evidence **5. Summary judgment:** - Often available in collection - Specific procedures - Specific evidence - Speedy resolution **6. Trial (if needed):** - Often bench trial - Specific procedures - Specific to issues - Specific outcomes **7. Judgment:** - Money judgment - Specific terms - Specific procedures - Enforcement begins ## Judgment enforcement **After winning judgment:** **Asset discovery:** - Debtor's exam - Specific procedures - Specific information - Specific to ${s.name} **Wage garnishment:** - Limited federal + state caps - Specific procedures - Specific to circumstances - See wage garnishment guide **Bank account levy:** - Specific procedures - Specific to ${s.name} - Specific exemptions - Specific to circumstances **Property liens:** - Real estate (specific procedures) - Personal property - Specific to ${s.name} - Specific recording **Property seizure:** - Specific procedures - Specific exemptions - Specific to ${s.name} - Limited typically **License suspension:** - Some states + types - Specific procedures - Specific to debt type - Limited applicability **Domestication of out-of-state judgments:** - Uniform Foreign Money Judgments Act - ${s.name} adoption - Specific procedures - Foreign + interstate ## Specific industry considerations **Construction:** - Mechanic's liens - Specific procedures - Specific deadlines - See mechanic's liens guide **Healthcare:** - Specific consumer protections - Specific billing rules - Specific to insurance - Specific procedures **Financial services:** - UCC Article 9 secured transactions - Specific procedures - Specific to security interests - Specific notices **Tech / SaaS:** - Specific contract terms - Specific to recurring billing - Specific to access termination - Specific procedures **Manufacturing:** - Specific to UCC - Specific procedures - Specific evidence - Specific to industry **Professional services:** - Specific to attorney-client + similar - Specific procedures - Specific privileges - Specific to industry ## Common defenses **Debtor's defenses:** **1. Lack of debt:** - Goods not received - Services not performed - Defective goods / services - Specific to facts **2. Defective goods / services:** - Counterclaim available - Specific damages - Specific procedures - Reduction of debt **3. Statute of limitations:** - Specific to ${s.name} - Specific to debt type - Specific accrual - Strict enforcement **4. Account already paid:** - Specific evidence - Specific procedures - Specific to circumstances - Documentation **5. Specific contract defenses:** - See breach of contract guide - Specific to circumstances - Specific procedures - Specific evidence **6. Bankruptcy:** - Automatic stay stops collection - Specific to bankruptcy type - Specific procedures - Specific consequences **7. Identity theft:** - Not actual debtor - Specific to evidence - Specific procedures - Specific defenses ## Pre-suit considerations **Cost-benefit analysis:** **For collector:** - Likelihood of payment - Cost of suit - Specific to debtor's assets - Specific to legal fees - Net recovery analysis **Settlement options:** - Discount for prompt payment - Payment plans - Specific terms - Specific to circumstances **Alternative dispute resolution:** - Mediation - Arbitration - Specific to contract - Specific procedures ## Strategic considerations **For creditors:** - Document everything - Maintain account records - Specific to evidence - Specific to ${s.name} - Specific procedures - Cost-benefit analysis - Strategic enforcement **For debtors:** - Respond to demand letters - Negotiate when possible - Specific to defenses - Specific procedures - Don't ignore lawsuits - Bankruptcy considerations ## Costs **For creditors:** - Demand letter: $50-$300 - Filing fees: $200-$500 - Service: $100-$500 - Attorney fees: $1,500-$15,000+ typical - Specific to complexity - Specific to amount - Often recoverable **Contingency vs hourly:** - Some attorneys take contingency (25-40%) - Others hourly - Specific to case - Specific to amount ## Attorney's fees recovery **Generally:** **"American Rule":** - Each side pays own fees - Default rule **Exceptions:** - Contract provides for fees - Specific statutes - Specific to ${s.name} - Specific procedures **Contract attorney fee provisions:** - Critical for collection cases - Specific language matters - Reciprocal vs one-sided - Specific enforcement ## What you should do If your New York business needs commercial collections: send demand letter + try to settle, then file lawsuit if necessary. Most New York commercial litigators handle collections. Many take contingency for stronger cases. Cost-benefit analysis essential. Document everything. Specific to New York requirements. --- *This guide is general information about New York law as of mid-2026 and is not legal advice. Commercial collections is technical. Talk to a licensed New York business attorney about your specific situation.*