How to File a Commercial Debt Lawsuit in New York

(And Actually Get Paid)

You delivered. You followed through. You held up your end of the deal. So where’s your payment?

When someone ghosts you on an invoice, your business takes the hit. Cash flow gets tight. Payroll stress creeps in. Your team starts asking questions. And you? You’re stuck chasing down money that should’ve been in the bank weeks ago.

Our commercial litigation attorneys at Horn Wright, LLP, help New York businesses go from waiting to winning. If someone owes you and won’t pay, we’ll step in, build your case, and fight to recover what’s rightfully yours, without making it harder than it has to be.

They’ve Stalled Long Enough: Here’s When It’s Time to Sue

Filing a lawsuit isn’t exactly how you want to spend your week. But at a certain point, you’ve got to stop chasing and start acting. If you’ve done everything you can and still can’t get paid, then yeah, it’s probably time to escalate.

Here’s how you know it’s lawsuit time:

• You’ve followed up (more than once), and they’ve gone quiet. New York’s Attorney General recommends sending at least one demand letter. But if they’re ignoring that too? You’re not dealing with someone who’s trying to work things out.
• The amount owed isn’t chump change. If it’s thousands or tens of thousands, it’s likely worth pursuing in Civil or Supreme Court.
• You’ve offered solutions. Payment plan? Partial payment? Grace period? If they’ve brushed all that off, they’re not interested in resolution.
• You’ve got backup. And by that, we mean contracts, emails, invoices, delivery confirmations - everything that shows you did the work.

Bottom line: if you’ve been patient, professional, and fair, and you’re still getting nowhere, then it’s time to take legal action. You’re not being difficult. You’re protecting your business.

Make Your Case Bulletproof: What You’ll Need to Win

The courtroom isn’t the place to wing it. When you’re suing for unpaid debt in New York, you’ve got to show up with proof, not just frustration. The more organized you are, the more leverage you have, and trust us, it matters.

Here’s what your case should include:

• A signed agreement. Under NY General Obligations Section 5-701, any deal over $500 should be in writing. No contract? Not impossible, but tougher.
• Invoices with clear terms. Due dates, itemized charges, late fees—lay it all out.
• Proof of delivery or completion. That could be an email saying “Thanks, we got it,” or a delivery signature. Keep receipts. Keep confirmations.
• Written communication. Messages where they acknowledged the debt, made promises to pay, or just stalled with “We’re working on it.”
• Demand letters. This shows the court you tried to resolve things before showing up with legal papers.

If goods were involved, and you filed a UCC-1, that can help too. Under the Uniform Commercial Code, that security interest can bump you up in line if they owe other creditors.

And just so you’re not caught off guard: you’ve got six years to sue in most New York business contract cases. That said, the sooner you file, the cleaner your case usually is, and the better chance you have at collecting.

Avoid These Case-Killing Mistakes (Seriously, Don’t Skip This Part)

Having a solid claim doesn’t mean you’re in the clear. We’ve seen great cases fall apart because someone missed a technicality or made a misstep.

Here’s how not to be that person:

1. Waiting too long

After six months, unpaid debts get harder to collect. The likelihood of full recovery drops by over 50%. Time isn’t on your side here.

2. Filing in the wrong court

Court choice matters. If your claim is under $10K, you’re looking at Small Claims. Up to $50K? That’s Civil Court. More than that? You’ll be in Supreme Court. File in the wrong spot and you risk delays or getting kicked out entirely.

3. Going after someone with no assets

Even if you win, you still have to collect. Use the NY Business Entity Search to make sure the company’s still active and has something worth going after.

4. Asking for what you can’t prove

Don’t pad your claim. If late fees or penalties aren’t written into your contract, the court’s not going to make them up for you.

5. Trying to do it all yourself

We know you wear a lot of hats, but legal paperwork shouldn’t be one of them. Most self-represented plaintiffs in New York debt cases lose. Not because they’re wrong, but because they miss court deadlines or file the wrong forms.

Handle your case like a pro or work with someone who will.

What to Expect Once You File (And How the Process Actually Works)

If this is your first commercial lawsuit, the legal system can feel like a black box. So here’s a quick breakdown of what’s coming:

1. You file the complaint. This document lays out your side: who owes you, how much, and why.
2. You serve the defendant.  They’ve got to be formally notified under Civil Practice Law & Rules Section 308. You can’t just email them. A licensed process server handles this.
3. They respond or don’t. If they reply, the case moves into the discovery phase. If they ignore it? You can request a default judgment, which is basically a court-ordered win.
4. Discovery starts. Each side shares evidence. You’ll exchange documents, maybe answer written questions, and prep your side of the story.
5. Trial (if needed). Plenty of cases settle before this point. But if not, you’ll present your case in front of a judge. No jury for these types of claims.
6. Enforcement. Winning in court is one thing. Getting paid is the next step. If the debtor still won’t pay, you can:
   1. Garnish wages
   2. Freeze bank accounts
   3. Put a lien on property

Tools like Civil Practice Law & Rules Section 5231 give you legal authority to make that happen, with help from a City Marshal or County Sheriff.

Get Dedicated Legal Support from Horn Wright, LLP

Our commercial litigation lawyers at Horn Wright, LLP, help New York businesses take legal action when payments stall and silence sets in. We build airtight cases, meet every deadline, and focus on one goal—getting you paid. 

If you’re ready to move forward with a team that takes your claim seriously, hire one of the best law firms in America. Contact our office today to schedule your complimentary case evaluation. Let us help you get back to business.