Judgment Enforcement Attorney
If you are dealing with a sudden judgment from a merchant cash advance (MCA) lender, it can feel like your business is under attack. All that pressure can feel suffocating, with threats of frozen accounts, seized assets, and constant stress.
At Colonna Cohen Law, we fight for merchants who feel trapped by these situations. We know the panic, frustration, and fear you are experiencing because we have helped others overcome it. Our legal team is here to challenge unfair judgments, protect your rights, and give you back control over your finances. Speak with our judgment enforcement attorney to find out how we can help you fight back.
Understanding Judgments
A judgment is a court ruling that legally requires you to pay a judgment debt. In merchant cash advance (MCA) disputes, judgments are often obtained quickly, sometimes without merchants even knowing a lawsuit was filed. This can happen through tools like “confessions of judgment,” which give lenders the power to bypass standard court procedures.
Once a judgment is issued, it gives the lender broad enforcement rights. These include freezing bank accounts, garnishing income, or seizing assets. Judgments in New York can be classified as “default” and “summary.”
Default Judgment
A default judgment occurs when the merchant fails to respond or appear in court within the required time. MCA lenders (creditors) can apply for this type of judgment by demonstrating to the court clerk that the merchant didn’t fulfill their legal obligation to respond. They will request a judgment for the outstanding balance, plus costs and legal fees, as outlined in the contract.
Once issued, a default judgment holds the same legal weight as any other judgment. Lenders can enforce it through actions like garnishing your bank accounts, freezing assets, or placing liens on property. Failing to respond to an MCA lawsuit increases the risk of default judgment.
Summary Judgment
Even if a merchantt responds or appears in court, lenders can still push for a summary judgment. In this scenario, the lender argues there’s no factual dispute about the merchant’s alleged breach of the agreement. They ask the court to rule in their favor without a full trial.
The lender typically claims the merchant owes the outstanding balance, plus costs and legal fees, as per the contract. Summary judgments are often granted when lenders provide strong evidence, such as a signed contract or confession of judgment clause. While these judgments bypass a lengthy trial, they are not immune to challenge. Merchants can still dispute the lender’s claims by demonstrating errors, unfair terms, or breaches of the agreement by the lender.
How Judgments Are Obtained in Merchant Cash Advance Disputes
Judgments often come as a shock to merchants, who may not fully understand how the process works until it’s too late. MCA lenders rely on specific legal strategies, designed to minimize your ability to fight back, to gain the upper hand. Here’s how lenders obtain judgments against merchants:
- Confession of judgment clauses: Many MCA agreements include a “confession of judgment” clause. This clause allows lenders to bypass standard legal procedures and obtain a judgment without notifying the merchant or holding a hearing. Lenders can submit this document directly to the court, claiming the merchant breached the agreement, and receive a judgment almost immediately.
- Merchant’s failure to respond or appear in court: If a merchant fails to respond to a lawsuit or doesn’t appear in court, lenders can seek a default judgment. They apply to the court clerk, claiming the merchant’s failure to respond as grounds for judgment. The court often grants the request, allowing the lender to enforce the judgment for the outstanding balance, legal fees, and other costs outlined in the contract.
- Proving no factual dispute: Even if the merchant responds to the lawsuit, lenders can pursue a summary judgment. This involves filing a motion with the court, arguing that there’s no factual dispute and that the merchant clearly owes the debt. If the court agrees, it can issue a judgment without proceeding to trial.
Judgments in New York obtained through these methods allow lenders to enforce collection actions like freezing bank accounts or seizing assets. At Colonna Cohen Law, we have seen how lenders’ tactics devastate merchants, and we are here to help.
Judgment Enforcement Defense Services
At Colonna Cohen Law, we provide comprehensive support to protect merchants from judgment enforcement actions. Here’s how we help:
- Challenging improperly obtained judgments: We carefully review the circumstances surrounding the judgment. If it was obtained unfairly or in violation of specific procedures, we will fight to have it overturned.
- Defending against confession of judgment clauses: It’s not uncommon for MCA contracts to include confession of judgment clauses. We analyze these clauses for potential legal challenges and work to limit their enforceability.
- Filing motions to vacate judgments: In cases of default judgments or errors, we can file motions to vacate. This can reopen the case, giving you a chance to defend yourself.
- Negotiating favorable settlements: When challenging a judgment isn’t possible or practical, we negotiate directly with lenders. Our goal is to reduce the amount owed or establish manageable payment terms.
At Colonna Cohen Law, we strive to provide clear, step-by-step guidance so you understand your options and feel confident in your defense to regain control of your finances.
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Benefits of Working with Colonna Cohen on Your Judgment Defense
When you hire a judgments lawyer in New York at Colonna Cohen Law, you can take advantage of working with a professional committed to protecting your business and financial well-being. Here’s what makes us a trusted ally in your battle against MCA lenders:
- Extensive experience: We have defended countless merchants against MCA lenders and their aggressive collection tactics. Our deep understanding of MCA agreements and judgment processes gives you a strategic advantage.
- Tailored strategies: Every case is unique, and we craft defense strategies to address your specific needs. Whether it’s vacating a judgment, negotiating a settlement, or challenging unfair contract terms, we ensure a customized approach.
- Strong negotiation skills: We have a proven track record of negotiating favorable settlements for our clients. Our ultimate goal is to reduce the financial burden, protect the client’s assets, and help them regain stability.
- Dedicated representation in court: If litigation becomes necessary, we fight tirelessly on your behalf. Our legal team knows how to expose lender misconduct and challenge unfair practices in court.
- Quick action to protect your assets: Time is critical when judgments are enforced. We act fast to prevent or minimize enforcement actions, such as account freezes, garnishments, or real property liens.
- Clear and open communication: All the legalities surrounding MCA disputes can feel like too much to handle. But we are here to guide you every step of the way. We explain the process clearly, keep you informed, and ensure you understand all your options.
At Colonna Cohen Law, we don’t just see you as another case. We understand the stress and stakes involved and are committed to securing the best possible outcome for your business and financial health. Discuss your specific situation with our judgments lawyer in New York today by calling at 917-740-2077 or reaching out via our website.
Frequently Asked Questions (FAQs) About Judgments
Defending against a judgment means taking legal action to challenge its validity or enforcement. This can include filing a motion to vacate, disputing the lender’s claims, or negotiating a settlement. By defending against a judgment, you could prevent further harm to your business.
Yes, you can stop enforcement of judgments in certain cases. Filing a motion to vacate or appeal can temporarily halt enforcement actions. In some cases, negotiating with the lender or obtaining a court order can also delay or stop enforcement. Discuss your options with a lawyer.
To vacate a judgment, you must file a motion with the court explaining why it should be reversed. Common reasons include improper service, fraud by the lender, or errors in the judgment process. Vacating a judgment reopens the case and allows you to defend yourself.
If you weren’t properly notified of the lawsuit, you might have grounds to challenge the judgment. Courts typically require that defendants are served with notice. If this didn’t happen, you could file a motion to vacate the judgment based on improper service.
Yes, you can challenge a COJ if the lender violated legal requirements or the judgment was obtained through fraud, coercion, or deception. Courts also scrutinize the fairness of these clauses in some jurisdictions.
Yes, many states provide exemptions that protect certain assets from being seized. These may include personal property, a portion of your bank account balance, or business tools that are essential for your work. A judgments lawyer in New York can help you understand the specific exemptions available in your case.
If you can’t afford to pay, you can try negotiating a payment plan or reduced settlement amount with the lender. Filing for bankruptcy can also provide relief in some cases, though it’s a decision that shouldn’t be taken lightly.
Yes, judgments can expire, but it depends on state laws. Most judgments are valid for several years and can often be renewed by the lender. If the judgment expires without being renewed, it may no longer be enforceable. According to the New York State Unified Court System, judgments in the state are valid for 20 years.
Yes, you can appeal if you believe the judgment was issued in error. Appeals must be filed within a specific time frame and typically focus on errors in law or procedure, so which might require a lawyer’s assistance.
The best thing you can do is act quickly when facing a lawsuit or judgment. Respond to all legal notices, seek legal representation early on, and avoid ignoring deadlines. Negotiating with the lender early or filing the appropriate motions can also help minimize the impact of a judgment and its disastrous effects.
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If your business is struggling with Merchant Cash Advance lawsuits, frozen accounts, UCC liens or collection actions, please contact Colonna Cohen Law to provide relief and protect your livelihood.
