As a contractor in the construction industry, you have worked hard to build your business. But when facing a default judgment from a merchant cash advance (MCA) lender, the stakes are high and the pressure is on. Are you prepared to take control of the situation?
Understanding the urgency of action
A default judgment can lead to wage garnishment, asset seizure and damage to your construction business. Therefore, it is essential to act quickly to minimize the consequences of a default.
Here are some critical errors to avoid:
- Facing the problem alone: You may try to navigate the situation alone, but seeking professional advice can help you understand your rights and options. Handling legal matters on your own can lead to further complications.
- Ignoring the default judgment: Failing to respond to a default judgment can lead to serious consequences, including allowing the lender to take additional steps to collect the MCA debt.
- Not gathering evidence: You must gather evidence to support your defense, including financial records and communications with the lender. Without evidence, you may struggle to build a strong case.
- Making payments without a plan: You may feel pressured to make payments right away, but there may be other ways to address the MCA debt. Making payments without a plan can lead to financial strain and limit your options.
- Failing to review the judgment: You must carefully review the default judgment to ensure it is valid. A thorough review can help you identify inaccuracies.
By avoiding these mistakes, you can take a proactive approach to addressing the default judgment as a contractor. One wrong move can make things worse, while a strategic approach can help you mitigate the damage.
Exploring your options for relief
A default judgment from an MCA lender can be devastating, but it is not the end of the road for your construction business. By seeking the help of a legal advocate, you may better take control of the situation and explore your options for relief, such as challenging the judgment and proposing alternatives to payment.