Collecting a Judgment in Small Claims Court New York

Winning the Judgment Is Only Half the Battle

A small claims court judgment in New York tells the losing party to pay. It does not force them to pay. The court does not collect money on your behalf. If the judgment debtor does not voluntarily hand over the amount owed, the judgment creditor has to pursue enforcement through separate legal mechanisms.

This matters whether you won the original claim or prevailed on a counterclaim. Either way, you are now a judgment creditor with the right to collect — but the responsibility to make it happen.

How Judgments Accrue Interest

Under CPLR Section 5004, judgments generally accrue post-judgment interest at 9% per year from entry of judgment; a judgment in a consumer debt action against a natural person accrues interest at 2%. For a $5,000 judgment subject to the 9% rate, one year of simple interest adds $450, before payments or other adjustments.

Enforcement Tools Available to Judgment Creditors

Information Subpoena

Before you can levy bank accounts or garnish wages, you need to know where the debtor's money is. Under CPLR Section 5224, an Information Subpoena is a written request for information that may be served by registered or certified mail, return receipt requested. Answers are due in writing under oath within seven days after receipt.

If the debtor ignores the subpoena, you can ask the court to enforce it under CPLR Section 2308(b). The statute permits service by registered or certified mail, return receipt requested.

Bank Account Levy (Execution Against Property)

Once you identify a bank account, enforcement may involve a restraining notice that freezes funds and a separate execution that levies them. These are distinct steps under CPLR Article 52; confirm the applicable filing and service procedure with the court clerk, county sheriff, or city marshal.

The debtor may claim certain exemptions. Under New York's Exempt Income Protection Act, the automatically protected account amount is tied to the minimum wage and adjusted periodically. For January through December 2026, it is $4,080 in New York City, Long Island, and Westchester, and $3,840 elsewhere in New York. Social Security, disability benefits, and certain other income sources may also be exempt from execution.

Wage Garnishment (Income Execution)

An income execution directs the debtor's employer to withhold a portion of each paycheck and send it to the judgment creditor. Under CPLR Section 5231, it may not take more than 10% of gross earnings. Each week's withholding also cannot exceed the lesser of 25% of disposable earnings (earnings after deductions required by law) or the amount by which disposable earnings exceed 30 times the greater of the federal or New York minimum hourly wage. No amount may be withheld under the execution if weekly disposable earnings do not exceed that threshold.

Under CPLR Section 5231, the income execution is delivered to the sheriff of the county where the debtor lives (or the county where they work if they live outside New York). The sheriff first serves it on the debtor; if the debtor does not pay for 20 days, or cannot be served within 20 days after delivery, the sheriff serves the employer or other payer.

Property Lien

Filing a transcript of judgment with the county clerk in the county where the debtor owns real property creates a lien. The lien attaches to the property and must be satisfied before the debtor can sell or refinance. This does not produce immediate cash, but it provides long-term security.

What the Debtor Side Needs to Know

If you lost the case and a judgment was entered against you, the options above are what the other side can pursue. You can avoid enforcement proceedings by paying the judgment voluntarily — contact the judgment creditor directly to arrange payment. If you cannot pay the full amount at once, the court can order an installment payment schedule.

Once you pay in full, the judgment creditor must file a Satisfaction of Judgment with the clerk, clearing the judgment from the court record.

If you believe the judgment was wrong, the path is either an Order to Show Cause to vacate (if it was a default) or a formal appeal within 30 days after service of the notice of entry (35 days if served by mail) — not simply refusing to pay. The appeal process post and vacating a default judgment post explain both options.

The Responding to a Small Claims Case in New York guide covers the full post-decision process — from understanding the judgment to navigating enforcement and appeals — with checklists for both sides.

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