The Merchant Cash Advance company has a judgment against me.
What should I do?
Sometimes, merchant cash advance companies act so aggressively (and sometimes unprofessionally) upon a non-payment that business owners just refuse to pay them on principal. Other times, the business owners recognize that if they pay what the merchant cash advance company says they owe, the business would go bankrupt right away. When that happens, and businesses stop paying the merchant cash advance company, the businesses will get stuck in a seemingly un-American world, where they aren’t afforded a day in court.
Most merchant cash advance companies are based out of states like New York and Pennsylvania. This is because they can obtain a quick confession of judgment (or judgment by confession), where you aren’t allowed to defend yourself. The merchant cash advance companies can essentially have an intern walk the judgment to the courthouse, a clerk of court stamps it, and now you and your business are each a judgment debtor.
Worst of all, the merchant cash advance companies can then take that judgment and garnish (freeze) your bank accounts and credit card processors.
If the merchant cash advance company can’t remove enough money from any of your bank accounts or credit card processors, their next step is typically to bring the judgment to your state, in a process called “domestication.” Once a judgment is domesticated in your home state, it acts as though the judgment was entered against you in that state. At that point, your non-homesteaded property and other assets are at substantial risk of being taken and sold to satisfy the judgment amount.
All of this happens very quickly, and oftentimes without the debtor ever realizing how serious it is until it is too late. If you are in a situation like this, it is vital to hire a law firm with experience in handling merchant cash advance companies and the legal issues you will see. Sometimes, litigation is necessary, and you should hire an aggressive law firm to protect your business and you, personally.
Romaguera Law Group has that experience, and we have a track record of negotiating settlements and litigating cases against merchant cash advance companies. Call us today for a completely FREE consultation and evaluation of your situation.