If you have been served with court papers, contact an attorney promptly. Missing a response deadline can result in a default judgment. Saldo Vita is not a law firm and does not provide legal advice.
Common MCA legal actions
- Breach-of-contract lawsuits against the business, and often against the owner under a personal guarantee.
- Confessions of judgment. Some MCA agreements included a signed document allowing the funder to obtain a judgment without a lawsuit. New York changed its law in August 2019 to limit filing confessions of judgment against people and businesses located outside New York. Older or out-of-state judgments may still exist.
- Enforcement such as bank restraints, levies and customer notices after a judgment.
What to gather
- The summons, complaint or judgment, including the court and case number
- Your MCA agreement and any confession of judgment you signed
- Your complete payment history
How negotiation and legal help fit together
Many MCA lawsuits still end in a negotiated settlement. Saldo Vita can handle negotiation while independent counsel, who represents only you, handles the court case. Where covered negotiation-related legal help is needed, counsel may be arranged under a separate retainer.
Questions
Can an MCA lawsuit be settled?
Often, yes. Lawsuits frequently resolve through negotiated agreements, but timing and terms vary. Keep responding to the court while negotiations happen.