# Debt and free financial counseling Source: https://www.qaravan.org/resources/money/debt-help/ If someone calls or writes to you about a debt, do not ignore it, but do not give out a card or account number until you are sure it is a real collector. You have rights, and New York City has free financial counselors. QARAVAN does not give legal advice and has no lawyers. If you are sued, turn to a lawyer or a legal aid organization. ## Start here - A debt collector generally must name the creditor, the amount and how to dispute within 5 days. If not, it could be a scam. - If you get court papers, respond by the date on them, yourself or through a lawyer. Otherwise the court can enter a default judgment against you. - The City offers free, confidential sessions with a financial counselor (NYC Financial Empowerment Centers). Book online or through [311](tel:311). ## If a debt collector contacts you 1. Do not ignore it, and do not give out data If the debt is valid, ignoring the calls usually will not make the collector go away: it may find other ways to collect, including a lawsuit. Do not give out financial details until you have confirmed the collector is real. 2. Get the validation information A collector generally must give, at first contact or within five days, the creditor's name, the amount you owe and how to dispute it. If it cannot or will not, it could be a scam. 3. Write promptly The CFPB has sample letters, for example asking the collector to contact you only through your lawyer. Send one as soon as possible after the first contact and keep copies. Some information can only be requested within 30 days, but it is still worth asking later. Sample letters are not legal advice. 4. If it is not your debt or you already paid Documents help your dispute. Ask the collector to prove you are the right debtor and to show how it calculated the amount. You can also tell the collector in writing to stop contacting you. 5. Know your rights Under the Fair Debt Collection Practices Act, collectors may not harass, oppress or abuse you. If they call at an inconvenient time or place, you can ask them to call at a time or place you choose. 6. File a complaint You can file a complaint about a debt collector with the CFPB. ## If you are sued over a debt 1. Respond by the deadline If you are sued over a debt, respond by the date in the court papers, yourself or through a lawyer. Responding does not mean you admit the debt: the collector then has to prove to the court that it is valid. 2. What happens if you do not respond The court could enter a default judgment for what the creditor claims, plus lawful costs, interest and attorney fees. Refusing to accept the papers may be treated as ignoring the lawsuit. A judgment is hard to change, and afterward, depending on your situation and state law, the creditor may garnish your wages, put a lien on your property or freeze money in your bank account. 3. Find a lawyer A lawyer can explain your federal and state protections. Some lawyers work for free or a reduced fee, and legal aid offices and legal clinics may help for free if you meet their criteria. 4. Know about the statute of limitations A collector cannot sue or threaten to sue once the statute of limitations (the time it has to file a lawsuit) has expired, and cannot threaten a lawsuit it does not intend to file. ## Real help and paid promises If you cannot pay your debts, compare who offers what. Credit counseling and other offers (October 2026) | | | | | | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | ## Free counseling at the NYC Financial Empowerment Centers 1. Check the requirements You must be 18 or older and live or work in New York City; income and immigration status do not matter. Sessions are free and confidential. 2. Book Book online on the Financial Empowerment Portal, with or without an account: [a866-dcwpwb.nyc.gov/talkmoney/book-appointment](https://a866-dcwpwb.nyc.gov/talkmoney/book-appointment). Sessions are in person or by phone, in your language. 3. Prepare documents Bring what you have: bills or statements, credit reports, collection notices, tax returns, pay stubs, court papers, student loan bills. The counselor can help even without them. Get a free credit report at [AnnualCreditReport.com](https://AnnualCreditReport.com). 4. What happens at the first session The counselor will call you, ask you to confirm your date of birth and address, and ask about your income, expenses, savings and debts. They may ask for your Social Security number to pull your credit report, but you can say no. Counselors never ask for payment. At the end you will have an Action Plan together and be offered a follow-up session. 5. How the counselor can help With your spending and credit, contacting lenders about debt (including student loans), a plan to reduce debt or lower payments, and access to emergency government help. The centers do not give loans or grants. ## Where to turn - NYC Financial Empowerment Centers Any status NYC residents Free Free, confidential sessions with a financial counselor from the City's Department of Consumer and Worker Protection (DCWP): budget, credit, debt, student loans, opening an account. You must be 18 or older and live or work in New York City; status does not matter. Book online: [a866-dcwpwb.nyc.gov/talkmoney/book-appointment](https://a866-dcwpwb.nyc.gov/talkmoney/book-appointment). [access.nyc.gov](https://access.nyc.gov/programs/nyc-financial-empowerment-centers/) - Consumer Financial Protection Bureau: debt collection Any status Free The federal agency that protects consumers of financial products: it explains debtors' rights, offers sample letters and takes complaints about debt collectors online: [consumerfinance.gov/complaint](https://consumerfinance.gov/complaint). [consumerfinance.gov](https://www.consumerfinance.gov/consumer-tools/debt-collection/) ## Glossary: definitions of special terms and abbreviations - ****: - ****: - ****: - ****: - ****: - ****: - ****: - ****: This is general information, not legal advice: QARAVAN has no lawyers. QARAVAN does not help anyone enter the US and cannot arrange visas, invitations, sponsorship or evacuation. For your own case, talk to a licensed immigration attorney or a representative accredited by the U.S. Department of Justice. [All pages: Money, food, benefits and taxes](https://www.qaravan.org/resources/money/) **Sources, checked November 2026** - [access.nyc.gov/programs/nyc-financial-empowerment-centers](https://access.nyc.gov/programs/nyc-financial-empowerment-centers/) - [annualcreditreport.com](https://www.annualcreditreport.com/) - [consumerfinance.gov/consumer-tools/debt-collection](https://www.consumerfinance.gov/consumer-tools/debt-collection/) - [consumerfinance.gov/complaint](https://www.consumerfinance.gov/complaint/)