Credit Card Lawsuits, Medical Bills, Personal Loans, and Tax Debt — We Defend All of It

Being sued for a debt — or threatened with a lawsuit — doesn't mean you owe what the collector claims. At Aronow Law, we've spent over two decades helping New Yorkers push back against creditors, debt buyers, and collectors who don't always have the documentation, the timeline, or the legal standing they pretend to have.

Automatic Stay Takes Effect the Day You File   •   Most Cases Discharged in 90 days in the EDNY, SDNY and New Jersey   •   Home Equity Up to $204,825 Protected for Nassau and Suffolk County Residents   •   Credit Cards, Medical Bills, Personal Loans, Most Judgments Dischargeable and more   •   Bankruptcy, Wage Garnishment, and Student Loans Resolved Together

What the Florida Divorce Process Looks Like

Understanding how agreement—or conflict—shapes the process.

What Chapter 7 Cannot Discharge

You Don't Need to Know the Legal Term — Just the Type of Debt

Most people who call us don't say "I need debt defense." They say "I got a summons for an old credit card" or "a collection agency is threatening to sue me over a hospital bill." That's exactly where we start. Whether you're facing a lawsuit or trying to get ahead of one, the first step is understanding what kind of debt you're dealing with and what options exist for that specific type.

Credit Card Debt: The Most Common Lawsuit — and One of the Most Defensible

Credit card lawsuits are the most frequently filed consumer debt cases in New York — and they're also among the most frequently filed with problems. Many are brought not by the original bank but by debt buyers who purchased your account for pennies on the dollar and may not have the documentation to prove what you actually owe, or even that they have the legal right to collect.

 

New York's statute of limitations on credit card debt is three years. If the debt is older than that, the lawsuit may be time-barred — meaning the collector cannot legally win in court, regardless of whether the underlying balance is real. We review the filing date, the last payment date, the chain of assignment from the original creditor to the buyer, and the accuracy of the balance claimed. Sued for a credit card doesn't mean you owe what they claim.

Medical Debt: Rules the Collectors Don't Always Follow

Medical debt in collections is subject to the same federal and state consumer protection laws that govern any other debt — including the Fair Debt Collection Practices Act. Collectors who threaten to sue on unverified balances, inflate what you owe, or pursue debt past the statute of limitations may be violating those rules. That violation can become leverage.

 

Before you pay a hospital bill that's landed in collections, it's worth verifying the amount, confirming who the current creditor actually is, and checking whether the timeline still allows them to sue. We help clients do exactly that — and when collectors have crossed a legal line, we pursue remedies under federal and New York law.

Personal Loans and Other Unsecured Debt

What Counts as a Personal Loan for Defense Purposes

Personal loans from banks, credit unions, online lenders, and even some buy-now-pay-later accounts are unsecured debts — meaning there's no collateral behind them. When they go to collections or result in a lawsuit, the same defenses that apply to credit card debt often apply here: statute of limitations, documentation gaps, balance disputes, and questions about the collector's standing to sue.

What We Look at When You've Been Sued

When a client comes to us after receiving a summons on a personal loan, we review the original loan agreement, the chain of ownership if the debt was sold, the amount claimed versus the amount that can actually be documented, and whether the filing falls within New York's three-year statute of limitations. Errors and overreach are more common than most borrowers expect.

Tax Debt: Federal and State Are Not the Same Problem

Tax debt defense depends entirely on which agency is pursuing you. IRS debt and New York State Department of Taxation and Finance (DTF) debt operate under different rules, different collection timelines, and different resolution options. Federal tax debt generally cannot be discharged in bankruptcy unless specific conditions are met — but older tax debt that meets the IRS's requirements sometimes can be. State tax debt through the DTF has its own statute of limitations and its own negotiation process.

 

We help clients understand which agency holds the debt, whether collection is still within the legal window, and which resolution path — negotiation, installment agreement, offer in compromise, or bankruptcy — fits their situation. For clients whose tax debt is part of a larger financial picture, discharging tax debt through bankruptcy may be the most effective tool available.

When Bankruptcy Is the Better Answer for Tax Debt

Not every tax debt problem is a debt defense problem. When the IRS or DTF debt is large, old enough to potentially qualify for discharge, or part of a broader financial crisis involving other unsecured debt, bankruptcy may accomplish more than negotiation alone. We evaluate both paths and recommend whichever one actually resolves the problem — not just the one that fits a single practice area.

What You Keep: New York's Chapter 7 Exemptions

New York law allows Chapter 7 filers to protect specific categories of assets from liquidation. These exemptions mean that most Nassau County residents who file Chapter 7 keep their home, their car, their retirement savings, and their household property.


  • Homestead exemption: Up to $204,825 in home equity protected for most New York residents
  • Vehicle exemption: Up to $5,500 in vehicle equity protected
  • Retirement accounts: 401(k), IRA, pension, and most qualified retirement accounts are fully exempt
  • Household goods and clothing: Protected up to applicable limits under New York law
  • Tools of the trade: Equipment used in your occupation, protected up to $3,575
  • Wildcard exemption: An additional amount applicable to any property of your choosing


New York also allows filers to choose between state and federal exemptions — whichever set produces the better outcome for your specific asset profile. Aronow Law reviews both options during your consultation and recommends the exemption set that protects the most.

Two coworkers review papers and discuss a project at a desk with a laptop and calculator.
Brass balance scale with two hanging pans on a central stand

Why the Debt Buyer's Case Is Often Weaker Than It Looks

When a debt is sold from the original creditor to a collection agency or debt buyer, documentation doesn't always follow cleanly. Account statements, signed agreements, and records of the last payment date can be missing, incomplete, or inconsistent by the time a lawsuit is filed. Courts require collectors to prove their claims — and when the paperwork doesn't hold up, that's a defense. We've seen cases where the claimed balance was inflated, the statute of limitations had already expired, or the debt buyer couldn't establish a proper chain of assignment. A lawsuit filed against you is the beginning of a legal process, not the end of one.

Frequently Asked Questions About Debt Defense in New York

  • Can I fight a credit card lawsuit in New York?

    Yes. Being served with a summons on a credit card debt doesn't mean the creditor will win. Common defenses include an expired statute of limitations, documentation gaps in the debt buyer's case, inflated balance claims, and improper service. An attorney can review the filing and identify which defenses apply to your situation.

  • What are my options for medical debt in collections?

    You have the right to request verification of the debt before paying. If the amount is inaccurate, the statute of limitations has expired, or the collector has used illegal tactics, those are all grounds for defense or a counterclaim. Paying without reviewing the debt first can waive rights you didn't know you had.

  • Is old tax debt collectible in New York?

    It depends on the type and age of the debt. The IRS generally has ten years from the date of assessment to collect federal tax debt. New York State has its own collection window. Debt that falls outside those windows may no longer be legally collectible — but the rules are specific, and the calculation matters. We review the timeline before advising on next steps.

  • Can a lawyer defend me against a credit card lawsuit in New York?

    Yes, and in many cases it's the most effective thing you can do. Debt buyers filing lawsuits in New York courts are required to meet specific evidentiary standards. An attorney can challenge the documentation, raise statute of limitations defenses, negotiate a settlement on more favorable terms, or in some cases get the case dismissed entirely.

  • What happens if I ignore a debt lawsuit in New York?

    If you don't respond to a summons within the required timeframe, the court will enter a default judgment against you. That judgment gives the creditor the ability to garnish your wages, freeze your bank account, or place a lien on property you own. Responding — even if you're not sure what to say — is almost always better than doing nothing.

Talk to Us Before You Decide What to Do

If you've been sued for a credit card, a personal loan, a medical bill, or tax debt — or if collectors are threatening legal action — we can tell you exactly where you stand. Our consultations are free, there's no time limit, and you'll speak directly with an attorney who has been handling these cases for over 23 years. We serve clients throughout Nassau County, Long Island, and the New York metro area, and we offer full bilingual support in Spanish.