Contractor Gone ยท New York
Contractor gone in New York: where the money can come from
New York State has no fund, but New York City does, and the state's escrow rule for deposits is the strongest hook in the country: a contractor who spent your deposit on anything but your job broke the law. Inside the five boroughs, file with DCWP and ask about the Trust Fund. Everywhere else, the Attorney General's Consumer Frauds Bureau and the county courts are the path.
Run the free check for New York
The four paths in New York
| Card chargeback | Same in every state. Dispute for services not rendered within 120 days of the promised completion, no later than 540 days after the payment. Each payment has its own clock. |
| City fund | Home Improvement Contractor Trust Fund (New York City only), NYC Department of Consumer and Worker Protection (DCWP). confirm with DCWP; licensees who do not join the fund post a $20,000 bond instead. Precondition: DCWP-licensed contractor; DCWP complaint and restitution order or a judgment. verified Agency page |
| Bankruptcy claim | If the company filed, a proof of claim (Official Form 410) with the court by the bar date. A deposit for personal or household services is a priority claim up to $3,800 for cases filed on or after April 1, 2025 (11 U.S.C. 507(a)(7)); the rest is general unsecured. |
| Lien exposure: Mostly protected | A sub's lien is limited to what you still owed the contractor when the lien was filed (Lien Law s. 4). Paid in full means no exposure. |
Is the contractor licensed?
Registered with the No state license; NYC (DCWP), Nassau, Suffolk, Westchester, Rockland, and Putnam counties license home improvement contractors. Look up the license. Outside those counties there is no license to check; look at the county clerk's judgment index and the permit record.
Deposits and the contract
Home improvement contracts over $500 must be in writing, and payments received in advance must be held in escrow or bonded until the work is substantially complete (Gen. Bus. Law Art. 36-A). Spending your deposit on something else is a violation. confirm
Small claims
NYC Civil Court small claims to $10,000; City Courts $5,000; Town and Village Courts $3,000, generally up to $10,000 as of 2025; confirm the current limit on the court's site before filing. Above the cap, the regular civil docket, where a lawyer is optional but usual. confirm
In order
- Pull the contract, every receipt, and your card or bank statements. The contract page shows where each number lives.
- Check the license at the link above. Licensed opens the fund; unlicensed means small claims and a report to the licensing body.
- If you paid by card, call the issuer today and open a dispute for services not rendered. The window closes; everything else waits.
- Send the demand letter by certified mail. It starts the clock the licensing body and the court will want to see.
- File the complaint with NYC Department of Consumer and Worker Protection (DCWP). The fund claim hangs off it.
- Search PACER for the company. A bankruptcy filing stops the letters and the lawsuit and replaces them with a proof of claim.
- Answer any subcontractor notice in writing with proof of what you paid. A sub's lien is limited to what you still owed the contractor when the lien was filed (Lien Law s. 4). Paid in full means no exposure.
The paperwork, done
The Contractor Gone kit, $39, fills every letter and form above with your facts: the chargeback script, the demand letter with New York's deposit rule cited, the licensing complaint, the fund application, the lien-defense letter, the proof of claim worksheet, and a checklist for hiring the contractor who finishes the job. What's in it, or run the check first; the answers carry into the kit.
Page written 2026-09-07. Rows marked verified were read on the agency page or statute on the date shown in the data; rows marked confirm are from general knowledge and should be checked with the agency. Spot an error? Email jon@homestillworks.com and it gets fixed the same day.