Sued for a Business Loan or Merchant Cash Advance?
New York Business Lawsuit Defense
When faced with a lawsuit for business or commercial debts, it can be difficult
to know where to turn. Lawsuits for business loans and merchant cash advances
oftentimes have a greater level of complexity as compared to suits for
credit card debts, and due to the high balances, the actions are likely
to be brought in Supreme Court. Getting help from the right lawyers is
more important then ever.
Need Help With a Business Debt Lawsuit?
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When were you served?
The first step is to take note of the date which you were served notice
of the lawsuit. There is a limited amount of time to respond from the
date of service of the court papers, and the time varies depending on
the way the lawsuit was served. Taking timely action is pivotal to avoiding
a default judgment.
Are you being sued due to a personal guarantee?
Look at the caption of the lawsuit and take note of whether the action
was brought only against the company, or, is the plaintiff looking to
collect from you in your personal capacity. If you signed a
personal guarantee, the plaintiff can try to recover the debt by pursuing your personal assets
in addition to any assets belonging to the commercial entity. However,
they would need to be able to obtain a court judgment prior to any such
Can I defend myself? Do I really need a defense lawyer?
In New York, most businesses such as corporations and limited liability
companies must appear in a lawsuit through an attorney (NY CPLR 321(a)).
An adult person might defend a personal civil action, but cannot do so
on behalf of the commercial entity. However, this rule generally does
not apply to partnerships or professional corporation law firms (aka P.C.).
Lawsuit Defense for Business Loans and Merchant Cash Advance
Our lawyers are well versed in providing defense from
lawsuits for merchant cash advance and
business loans. After filing an Answer with Affirmative Defenses and any applicable counterclaims,
we may request discovery by way of Interrogatories, Notices to Admit,
Depositions, and a Demand For Productions of documents, all as deemed
necessary. The purpose is to determine whether the Plaintiff’s claim
is legitimate and can be substantiated with evidence.
Based on the review of the discovery responses, our commercial litigation
attorneys will be in a better position to advise as to a plan of action,
whether it be a Motion to Dismiss, fighting at trial, or
negotiating to settle the business debt lawsuit.
While lawsuits for business loans are oftentimes brought on a basis of
breach of contract, an action collect on a
merchant cash advance debt might also include causes of action such as unjust enrichment. A merchant
cash advance (mca) is not a business loan, rather it is a buyout of future
receivables. A close analysis will be required to determine the applicable
lawsuit defense strategies for each type of business debt.
Aggressive Business Lawyers at Affordable Rates
help fighting a business lawsuit, it’s important to hire an
attorney with an excellent reputation so that you are confident knowing you have an experienced advocate on
your side. Contact us at
877-717-0098 for a free evaluation and to speak to an attorney about your
commercial debt relief options.