DEALING WITH A JUDGMENT LIEN AFTER DEFAULTING ON MCA
Delancey Street OFFERS A MONEY BACK GUARANTEE for debt relief services.
JUDGMENT LIEN HEADACHE
Yes, it’s a headache. If you’ve defaulted on a merchant cash advance (MCA), you might be dealing with a judgment lien, or a COJ – confession of judgement. This outcome can be overwhelming, and your business might feel like it’s on the verge of exploding. If you get a judgement placed on your business, all your business assets are at risk.
WE GET IT. WE UNDERSTAND. WE CAN HELP YOU.
We’re DelanceyStreet.com, a top tier business debt relief company. We’ve seen it all – from merchant cash advance stacking to last-minute lawsuits. Regardless of the situation, we know how to guide you. We have a network of attorneys nationwide, and we’re owned by an attorney.
WHAT IS A JUDGMENT LIEN?
A judgment lien is when an MCA lender obtains a legal right to your property (like real estate or other valuable assets) after winning a court decision against you and getting a court order. In some states, you might see this happen automatically the moment the court issues a judgment. If you signed a confession of judgement, the lender doesn’t even need to go to court. In others, the MCA lender (not “provider”) files paperwork in the county records – and boom, you can’t sell or refinance your property without paying them off first.
REGARDLESS OF HOW IT HAPPENED, JUDGMENT LIENS ARE SERIOUS.
UNDERSTANDING THE POTENTIAL PENALTIES
The penalties for ignoring a judgment lien can be severe. In some cases:
• Wage Garnishment: If applicable in your state, your wages can be garnished by the MCA lender.
• Asset Seizures: Some states allow property seizure or bank account levies, even against personal assets.
• Credit Score Damage: A judgment can appear on public records, negatively affecting your ability to borrow in the future.
Visit the Federal Trade Commission to learn more about potential penalties for unpaid judgments. Or head to USA.gov’s Debt Collection page for official resources.
THE LEGAL LANDSCAPE
Every state has its own rules about judgment liens. Some states even have “homestead exemptions” that can protect your primary residence. Other states allow unlimited renewal of judgments, meaning the MCA lender can keep renewing that lien basically forever. Regardless of your location, you might also face a confession of judgment (COJ) scenario – meaning you agreed upfront to let the MCA lender get a judgment without a typical trial.
COJ
Short for “Confession of Judgment,” COJs let the lender file court documents stating you admitted liability if you default. This can result in a lightning-fast judgment.
GUESS WHAT? COJs are viewed as controversial, and certain states restrict or prohibit them. Check your state attorney general’s website to see if COJs are enforceable where you live.
IMPLICATIONS IN EVERY SITUATION
1. You own property? That lien means you might be blocked from selling or refinancing unless you pay the debt.
2. You have a bank account? The MCA lender could try to levy it.
3. You have ongoing sales or AR (accounts receivable)? The MCA lender might attempt to garnish those receivables.
4. You rely on credit? The lien can crush your FICO score, making new credit nearly impossible.
Regardless of the situation, the consequences can be brutal, leaving you with limited cash flow, stress, and sleepless nights. Your employees are at risk, their families are at risk – you as the owner, are responsible for feeding many people.
DEFENSE STRATEGIES
We fight. We protect. We win.
Below are ways we might defend you if an MCA lender obtains (or threatens) a judgment lien:
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Challenging the Judgment’s Validity
Sometimes, the MCA agreement is flawed. Maybe it violates state usury laws. Maybe the COJ was filed improperly. If the lender took shortcuts, we can petition the court to vacate or set aside the judgment. -
Negotiating a Settlement
Lenders just want their money. We can help create a lump sum settlement or payment plan to release the lien. It’s that simple – but the execution demands tactical negotiations. -
Bankruptcy Protection
Look, nobody wants to file for bankruptcy if it can be avoided, but sometimes it’s the only path to relief. Chapter 11 or Chapter 13 can stop lien enforcement, letting you reorganize your debts. Check the United States Courts website for official info on bankruptcy basics. -
Asset Exemptions
Many states protect certain assets from seizure. We analyze your situation and see if your state’s homestead or personal property exemptions can neutralize the lien’s power. -
Motion to Avoid Lien
In some jurisdictions, you can ask the court to remove (“avoid”) a lien if it impairs your exempt property. For instance, if the lien intrudes on your protected home equity, we might get it lifted.
STREAM OF CONSCIOUSNESS: HOW A JUDGMENT LIEN COULD GET DISMANTLED
We step in right after you receive the letter: “Judgment Entered.” We gather your original MCA contracts and examine them line by line. We notice the factor rate was sky-high, borderline predatory. Then we see a suspicious COJ clause that might be unenforceable in your state. Next, we contact the MCA lender’s attorneys, who are used to pushing people around, and we push back. We mention potential defenses, flaws in the contract, or how we’re prepared to file legal motions. They’re concerned, because they don’t want a judge scrutinizing their shady contract. Ultimately, they cave and agree to slash the debt. You pay a reduced amount, they release the lien, and you avoid going out of business. That’s how it can happen.
LOOK, WE’RE HERE FOR YOU.
We are DelanceyStreet.com, a top-tier business debt relief company, AS SEEN ON major media outlets. Our EXPERIENCE is unmatched, our DEDICATED team of attorneys is always ready, and we aim to do what’s best for you. We know how to handle your MCA lenders.
OUR MONEY BACK GUARANTEE
We’re so confident in our services that Delancey Street offers a money back guarantee for debt relief services.
That’s how sure we are of our approach.
HERE’S THE BOTTOM LINE
Judgment liens can break a business if left unchecked. Regardless of whether you’re behind on one MCA or multiple, we can help you craft an action plan. We’ll do everything possible to protect your livelihood, from renegotiation to litigating your case if needed.
CONTACT US TODAY
We’re available 24/7, to provide, a risk free consultation. Our attorneys will:
• Analyze your contract and gather all relevant documents
• Identify possible defenses (like improper service or usury)
• Engage in strategic negotiations with the MCA lender
• Recommend if settlement, restructuring, or even bankruptcy might be your best course
SOME IMPORTANT LEGAL NOTES
• We’re not guaranteeing a specific outcome because every situation is different.
• We’re not your lawyers until we sign a client agreement.
• Always consult licensed legal counsel in your state.