Does an Appeal Stop Judgment Collection in New York?

The Short Answer: No, Not Automatically

Filing a Notice of Appeal does not automatically stop enforcement of a money judgment in New York. This surprises many judgment debtors — and frustrates creditors who pause collection unnecessarily because the other side filed an appeal.

Under CPLR 5519, a notice of appeal alone provides no stay of execution. The judgment creditor can continue pursuing bank levies, wage garnishment, and property executions while the appeal is pending. The debtor who wants to halt collection has to do more than just file paperwork at the appellate court.

What Actually Stops Enforcement

To obtain an automatic stay under CPLR 5519(a)(2), the judgment debtor must execute and file an undertaking — commonly called an appeal bond. This is a financial guarantee, typically from a surety company, pledging to pay the full judgment amount plus post-judgment interest if the appeal fails.

The undertaking must be:

• In the amount of the judgment plus post-judgment interest if the appeal is dismissed or affirmed
• Filed with the clerk of the court that entered the judgment
• Served on the judgment creditor

Once a valid undertaking is filed, enforcement stops automatically. The creditor cannot levy accounts, garnish wages, or execute against property while the bond is in place. If the debtor wins the appeal, the undertaking is released. If the debtor loses, the creditor collects from the surety.

For small claims judgments, most debtors cannot or do not post an undertaking. Surety companies charge premiums, require financial qualification, and the amounts may be impractical for a debtor already in financial difficulty. Without the undertaking, the appeal is just a legal proceeding — it does not affect your enforcement rights.

Default Judgments Are Different

Default judgments — entered when the debtor failed to appear at trial — cannot be appealed through the standard appellate process. Instead, the debtor must file an Order to Show Cause to vacate the default, demonstrating both a reasonable excuse for not appearing and a meritorious defense to the claim.

The critical wrinkle: when a judge signs an Order to Show Cause to vacate a default judgment, the judge frequently includes an interim stay halting all enforcement until the motion is heard. This stay is discretionary — the judge decides whether to include it — but it is common.

If you receive notice that the debtor has filed an Order to Show Cause with an interim stay, you must stop enforcement immediately. Proceeding after a court-ordered stay can result in contempt sanctions.

Practical Implications for Creditors

Check for an undertaking, not just an appeal. If the debtor filed a notice of appeal but no undertaking, you can proceed with enforcement. Confirm with the court clerk whether an undertaking was filed.

Monitor Order to Show Cause filings. If the debtor obtained a default judgment vacatur hearing with an interim stay, that stay is binding until the court rules on the motion. Ask the clerk for a copy of the signed order to see whether a stay was included.

Do not voluntarily pause. Receiving a letter from the debtor or their attorney saying "we have filed an appeal" does not obligate you to stop. Only a valid CPLR 5519(a)(2) undertaking or a court-ordered stay has that effect.

Timeline awareness. The debtor has 30 days from service of the Notice of Entry (plus 5 days if served by mail) to file a Notice of Appeal under CPLR 5513. If that window passes without an appeal or a vacatur motion, your enforcement path is clear.

Our New York Judgment Collection Guide covers the appeal and stay rules alongside the full enforcement timeline, so you know at every stage what can proceed and what requires waiting.

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