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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.

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 execution.

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

When seeking 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 (888) 301-0584 for a free evaluation and to speak to an attorney about your commercial debt relief options.

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