2006 New York Code - Default And Consent Judgments.

 
    §  5214.  Default and consent judgments. (a) No claim shall be allowed
  and ordered to be paid by the corporation if the court  finds  upon  the
  hearing  for  the  allowance  of  the  claim  that  it is founded upon a
  judgment which was entered by default or consent of the defendant.
    (b) When  the  corporation  receives  notice  of  intention  to  enter
  judgment  and  intention to file a claim against the corporation and the
  time allowed for filing an answer has expired, the corporation shall  be
  granted  a  reasonable  time after the receipt of notice by it to answer
  and to defend the action.
    (c) If upon a hearing for the  allowance  of  any  claim  against  the
  corporation  the court finds that the judgment was entered by default or
  with the consent or agreement of the defendant it shall order  that  the
  judgment  insofar  as  it  affects  the corporation be set aside and the
  corporation permitted to proceed in the action as provided above.