SATISFY JUDGEMENTS
DO YOU HAVE A JUDGEMENT?
Every day, hundreds of small businesses are sued by creditors. Specifically, alternative lenders who were not paid on their purchase of future receivables or loan providers who were not paid back use tactics which aim at recovering funds.
MCA Creditor Tool: Judgement
One go to tool that MCA lenders will use to attempt to recover funds is by suing the client in a court venue which is generally favorable to the creditor. New York is one place which has been home to most MCA providers since 2008. In New York, MCA companies file civil complaints in county courts, making it harder for business owners, especially those not in New York to defend themselves. Those who have civil proceedings filed against them 30 days to answer the complaint (upon being served or notification as per their MCA agreement), and if the business is in NY only 20 calendar days to answer the lawsuit. This immediately causes issues for the business owner because in order to answer the lawsuit the business must use an attorney who is admitted to practice law in the state of New York State. Further complicating things, most people outside of New York will fail to find many attorneys who are experienced in handling MCA cases, which can be quite challenging, as well as very expensive. Retainers can start as high as $5,000 to hire an attorney.
The main outcome is that most of these lawsuits never go answered within the time allotted. After 30 (or 20 in NY) is up, the creditor then does not need a judge but will have the court clerk sign a judgement, which is a court order that is the decision in a lawsuit. When you have a judgement, creditors can go after your assets, bank accounts, and more to recover their funds.
How Our Program Works
If you have a judgement, most likely you have a judgement against your business, but you likely have a judgement against you personally. This means you will likely not be able to borrow money in most capacities, buy property, etc.
Our team will work to understand your position, how you received a judgement, seek legal solutions with our attorneys, and build a plan that removes or satisfies your judgement that is realistic, smart, and affordable. Most strategies we implement result in a small business and small business owner's return to good standing and in many cases our clients are able to secure additional funding.