InfoBytes Blog
New York announces postponement of collection efforts for certain debts
On March 17, the governor and the attorney general of New York announced that, effective immediately, New York will temporarily postpone collection efforts on certain debts. Consumers with student loan debt and medical debt owed to the state will be receive at least a 30-day hiatus on payments—including a freeze on the accrual of interest on the debts—in order to allow them to deal with the effects of Covid-19. Debts must fit certain criteria in order to qualify for the debt payment freeze. Among other things, the criteria include (i) “[p]atients that owe medical debt due to the five state hospitals and the five state veterans' home[s]”; (ii) “[s]tudents that owe student debt due to State University of New York campuses”; and (iii) “[i]ndividual debtors, sole-proprietors, small business owners, and certain homeowners that owe debt relating to oil spill cleanup and removal costs, property damage, and breach of contract, as well as other fees owed to state agencies.” New Yorkers who have other types of debt that are owed to the state and who are referred to the Office of the Attorney General may apply for a temporary freeze on collection by submitting an application which can be found here.