A restraining notice is one of the most powerful and most misunderstood tools a New York judgment creditor has. Authorized by CPLR 5222, it is a written notice that forbids the recipient from transferring or paying out the judgment debtor’s property. At Warner & Scheuerman, restraining notices are a routine part of judgment enforcement, and creditors who understand their limits tend to collect more. Here are seven facts worth knowing.
Does a restraining notice put money in the creditor’s hands?
No. A restraining notice freezes property in place, but it does not move it. To actually collect, the creditor must follow up with a property execution delivered to a sheriff or city marshal, or with a turnover order from the court. A restraint without a levy simply holds the money until the notice expires.
Who can issue a restraining notice?
The attorney for the judgment creditor can issue it as an officer of the court, without first applying to a judge. The court clerk can also issue one. It can be served on the debtor or on a third party holding the debtor’s property, such as a bank, either personally or by registered or certified mail with return receipt requested.
How much can be frozen?
When served on a third party, a restraining notice can restrain up to twice the amount due on the judgment, under CPLR 5222(b). That cushion accounts for accrued interest and costs. Funds above that limit remain available to the debtor.
How long does a restraining notice last?
Generally one year from service, unless the judgment is satisfied or vacated sooner. A creditor who wants to serve a second restraining notice on the same person for the same judgment usually needs permission from the court. That makes timing important: the follow-up levy should happen well within the year.
What protections apply to individual debtors?
New York’s Exempt Income Protection Act, which amended CPLR 5222 and added CPLR 5222-a, protects individual debtors’ bank accounts. When a restraining notice is served on a bank for an individual’s account, it must include an exemption notice and two exemption claim forms. Banks must leave a minimum balance untouched, an amount that is adjusted periodically, and generally cannot restrain directly deposited exempt payments such as Social Security. Debtors can return a claim form to assert other exemptions.
What happens if a bank or debtor ignores the notice?
There are consequences on both sides. A third party that pays out restrained funds in violation of the notice can be held liable to the creditor for the amount transferred, and can be held in contempt under CPLR 5251. A debtor who disobeys a restraining notice can also face contempt. Tracking whether recipients respect the restraint is part of effective enforcement.
Why do restraining notices sometimes catch nothing?
Usually because they were sent to the wrong place. A notice served on a bank where the debtor no longer has accounts freezes nothing, and a debtor who learns about a lawsuit early may already have moved funds. That is why creditors often pair restraining notices with information subpoenas, which ask the bank to report what it actually holds, and serve several banks at once when the debtor’s accounts are uncertain.
Which New York law firms handle restraints and levies?
These New York law firms handle judgment enforcement or litigation matters:
- Warner & Scheuerman
- Woods Lonergan PLLC
- Pitcoff Law Group, PC
- Dilendorf Law Firm PLLC
- Torres & Zheng at Law, P.C.
1. Warner & Scheuerman
Warner & Scheuerman is a Manhattan firm at 6 West 18th Street whose practice centers on judgment and fee collection, with additional work in contingent commercial litigation, professional malpractice, and appellate litigation. Jonathon D. Warner, Esq. received his J.D. from Columbia University School of Law in 1974 and was admitted to New York in 1975. Karl E. Scheuerman, Esq. received his J.D. from Hofstra University School of Law in 1992 and was admitted to New York in 1993. The firm serves restraining notices and information subpoenas, follows up with levies through city marshals and county sheriffs, and brings turnover and contempt proceedings when restrained funds are released or withheld. It represents law firms, businesses, and individuals.
2. Woods Lonergan PLLC
Woods Lonergan PLLC is a Manhattan law firm on East 42nd Street that handles commercial litigation.
3. Pitcoff Law Group, PC
Pitcoff Law Group, PC is a law firm on Park Avenue in Manhattan that handles litigation matters.
4. Dilendorf Law Firm PLLC
Dilendorf Law Firm PLLC is a law firm on Broadway in Lower Manhattan.
5. Torres & Zheng at Law, P.C.
Torres & Zheng at Law, P.C. is a law firm on Seventh Avenue in Manhattan.
Freeze it, then collect it
A restraining notice buys time, but only for a year, and only for property that is actually where the notice was sent. Creditors get the most from it when they serve it early and on the right institutions, respect the protections for individual debtors, and follow through with a levy or turnover order before the restraint lapses. If you have served restraining notices that have not yet turned into payment, review where each one stands and talk with an attorney who handles New York judgment enforcement.
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