Sued Over a Merchant Cash Advance?

When you are served, a clock starts. You have a limited amount of time to file a formal response with the court, and how long depends on the state and the type of case. It is often somewhere around twenty to thirty days, but you should confirm the exact deadline for your case rather than relying on a general figure.

If that deadline passes without a response, the other side can ask the court for a default judgment. That means they win automatically, without the case ever being argued.

A default judgment is the outcome to avoid. It can open the door to collection tools that are far harder to deal with than the lawsuit itself, including efforts to reach bank accounts and receivables.

Whatever else you do, do not let the response deadline pass. This is the single most important thing on this page.

A lawsuit is a claim, not a conclusion. The amount demanded in a complaint is what the funder says you owe, and that figure is not automatically correct.

Settlement is still very much possible after filing. Many of these cases resolve by agreement rather than by a judge deciding them.

Funders have real incentives to resolve. Litigation is expensive, slow, and does not guarantee them a dollar of actual recovery.

Find the exact date your response is due and write it down. Everything else is secondary to that date.

Speak with a licensed attorney in the state where the case was filed. This is about protecting your rights in the case itself.

Do not contact the opposing attorney to explain your situation. Anything you say can be used in the case. Conversations about the debt should happen through the right channel.

Gather everything. The lawsuit papers, your original agreement, your bank statements, and every communication you have had with the funder.

Get the debt itself reviewed. The litigation and the underlying debt are two different problems. We work on the second one.