Business debt settlement companies in New York City worth hiring must have lawyers who are admitted to practice law in New York. They must be able to appear in any county where the business was sued, where a confession of judgment was entered or where the City Marshal or Sheriff levied on a bank account.
Which NYC court will hear an MCA lawsuit against my business?
It will depend on the amount that the funder is seeking. Under Civil Court Act 202, the NYC Civil Court may hear claims up to $50,000. Larger claims will have to be filed in the Supreme Court of the county. Each borough is a county with its own Supreme Court, and the amount needed to get into the Commercial Division is different for each county under 22 NYCRR 202.70(a).
Commercial Division monetary thresholds in NYC (not including punitive damages, interest, costs, disbursements or counsel fees)
| County (borough) | Minimum claim for the Commercial Division |
|---|
| New York (Manhattan) | $500,000 |
| Kings (Brooklyn) | $150,000 |
| Queens | $100,000 |
| Bronx | $75,000 |
| Richmond (Staten Island) | Not listed, so no Commercial Division track |
A Brooklyn LLC sued for a $180,000 stacked balance qualifies in Kings County but not in Manhattan. Breach of contract arising out of business dealings and UCC transactions qualify, and the party seeking the Commercial Division must apply within ninety (90) days after service of the complaint. Actions to enforce a judgment stay out of the Commercial Division unless the judgment was entered there.
If the position was for $40,000, the matter may be filed in Civil Court. The Commercial Claims Part of Civil Court only handles claims up to $10,000, and above that the company must have a lawyer to appear.
Why was I sued in Rockland or Nassau when my business is in the city?
The answer may lie in the forum and venue clauses that are common in New York. As reported in the Rockland County Business Journal in September 2026, hundreds of MCA lawsuits a month were filed in Rockland County Supreme Court, many ending in default judgments. The provider you choose must be able to answer the lawsuit there.
Where does a confession of judgment against an NYC business get entered?
Under CPLR 3218, the confession of judgment may be filed with the clerk of the county where the defendant resided when the affidavit was signed or resides when it is filed. A company resides in any county in which it maintains a place of business. A Brooklyn LLC's judgment is entered by the Kings County Clerk, a Queens resident who signed the personal guarantee is hit in Queens, and a business in two boroughs can see it filed in either. The clerk can enter it without a lawsuit within three years after the confession was signed. and taxes costs of $15. For background, see our statewide New York guide. A challenge is usually a separate plenary action, and your provider must be able to file one in that county.
How do City Marshals and the Sheriff take money from NYC bank accounts?
Once the funder has a judgment, its attorney, as an officer of the court, can issue a restraining notice in accordance with CPLR 5222 without appearing in court, effective for one year, and deliver an execution to an enforcement officer who must return it within sixty (60) days in accordance with CPLR 5230. In New York City that officer is the City Sheriff, a salaried City employee, or a City Marshal. Marshals are appointed by the Mayor for five (5) year terms, capped at 83, regulated by the Department of Investigation, and since August 1997 allowed to collect Supreme Court money judgments. See our article on restraining notices and whether you can get one lifted.
According to the Department of Investigation webpage for marshals, they will charge $15 for receiving the execution, $15 for levying and $35 for mileage, plus poundage added to the judgment and collected from you. Under CPLR 8012, poundage is five percent of the sum collected. So if you owed $100,000 on the judgment, the Marshal can collect an additional $5,000. With the creditor's consent, a payment arrangement means the Marshal doesn't have to sell the property, and you can also seek a protective order from the Civil Court. The DOI's list of marshals shows badge numbers, and fee complaints go to the Bureau of City Marshals at 212-825-5953.
What should I look for in business debt settlement companies in NYC?
Make sure the company you hire can actually represent you in the court where you need them. If they can't appear in New York courts, they can't answer a lawsuit for your LLC, move to set aside a confession, or seek a protective order. You should ask:
- Do they have New York-admitted attorneys who e-file in your county's Supreme or Civil Court?
- Do they know the monetary threshold for the Commercial Division in your county?
- Can they appear in a county like Rockland or Nassau if your funder filed there?
- Can they handle restraint, levy and execution defense against marshals or the Sheriff?
- Will they check county clerk records for confessions in every borough where you live or operate?
Finally, the company should be current on the law. Do they know about People v Richmond Capital Group, decided by the First Department Appellate Division on February 19, 2026? Do they know about the FAIR Business Practices Act, signed into law in December of 2025? Do they know about the Attorney General's settlement with Yellowstone in January of 2025? For pricing, see our breakdown of business debt settlement costs.
Frequently Asked Questions
Can a debt settlement company represent my LLC in a New York City court?
Unless your case is in Civil Court in the commercial claims part (up to $10,000), a company has to appear through a lawyer. So if the debt settlement company doesn't have any lawyers admitted in New York, they can't represent your business in Supreme or Civil court.
Can a City Marshal take my building or my home?
No, according to the Department of Investigation, Marshals can't take or sell real property. The Sheriff, however, can.
How much does a marshal's bank levy add to what I owe?
Expect $15 for receiving the execution, $15 for levying, $35 for mileage and 5% poundage on the sum collected, so a $100,000 judgment means an additional $5,000.
Does a Staten Island business have a Commercial Division option?
Richmond County is not listed in 22 NYCRR 202.70(a), so a Supreme Court MCA lawsuit in Staten Island will always be on the general track.