At David I. Mizrahi Law, P.C., we represent Merchant Cash Advance (MCA) funders from A to Z, from drafting airtight agreements to the aggressive enforcement of judgments (spelled, as the law requires, without the extra "e"). Obtaining a judgment is only the first step; turning that "paper win" into cash is the real challenge. We put a lot of our time in the high-stakes terrain of merchant defaults, utilizing an advanced enforcement toolkit to recover what is owed when merchants attempt to hide assets or dodge repayment. Whether you are handling a high-volume default portfolio or pursuing a complex isolated judgment, we provide the relentless legal precision needed to secure your financial recovery. We don’t just win cases; we materialize judgments.
To recover your funds, we don’t just wait for the merchant to pay; we utilize the full weight of New York CPLR Article 52 to identify and seize assets. Our firm maintains a high-volume practice in the specific legal mechanisms required to move money from a debtor's bank to your bottom line:
The moment we identify a funded account or a third-party holding merchant funds, we serve a Restraining Notice to freeze the assets instantly, preventing the debtor from transferring funds before they can be collected.
We identify hidden assets by issuing broad-reaching Information Subpoenas to banks, merchant processors, and third-party garnishees. This allows us to locate every available dollar and source of revenue.
To compel the production of physical records, a Subpoena Duces Tecum is the essential tool. We bypass uncooperative debtors by serving Subpoenas Duces Tecum directly to banks. We demand the most recent bank statements, month-to-date activity, and the final records of any recently closed accounts. This allows us to track money trails and identify fraudulent transfers in real-time.
When a paper trail suggests hidden assets, we compel the debtor to appear for an examination under oath. This "hands-on" discovery is vital for identifying Fraudulent Conveyances where a merchant has moved funds to avoid their obligations to the funder.
While a Restraining Notice is the first step, major banking institutions like often cite the Koehler doctrine to resist turning over funds from non-New York accounts. They require a specific Turnover Order pursuant to CPLR 5225. We secure these supplemental orders to compel national banks to liquidate out-of-state accounts, ensuring that 'Separate Entity' defenses do not stop your recovery.
Beyond standard bank levies, we handle the complex litigation often required to finalize a recovery:
Domestication is the legal process of getting a court in one state to recognize and enforce a judgment obtained in another. Since many MCA deals involve out-of-state merchants, you must domesticate your judgment before you can seize assets or garnish wages in the debtor's home state. Most states follow the Uniform Enforcement of Foreign Judgments Act (UEFJA). This "fast-track" law allows your attorney to enforce a judgment simply by filing an authenticated copy with the new state's clerk, bypassing the need for a brand-new, costly lawsuit.
If a merchant moved assets to avoid payment, we follow the money. We file lawsuits against the recipients of those funds to ensure your judgment is satisfied.
We secure your claim by filing abstracts of judgment with County Clerks, creating liens on real property that must be paid before a debtor can sell or refinance.
In New York, judgments accrue interest at 9% per annum. We ensure that every cent of interest, along with applicable attorney’s fees and costs, is calculated into the final recovery.
A judgment can be a powerful tool for MCA funders, but it can also pose significant challenges for debtors. A judgment in a debt collection lawsuit is a court order that allows a collector to use stronger tools, such as wage or bank account garnishments, to collect the debt. Our judgment attorney, David I. Mizrahi, Esq., can help creditors navigate the judgment process, ensuring the best possible outcome.
• Tip: Act Quickly to Protect Your Rights: For MCA funders, we ensure that your judgment collection efforts are swift and effective, preventing the debtor from hiding assets or delaying payment.
Time’s against you when debtors hide funds, we move faster. Our state court experience ensures swift, effective collection, preventing debtors from complicating the process.
We work with MCA funders across New York assisting with this final step of the puzzle. We understand the complexities of judgment enforcement, from issuing a writ of execution to navigating post-judgment collections.
Every case is unique, and we tailor our approach to your specific needs. For MCA funders, we focus on maximizing your recovery through aggressive judgment collection strategies.
Navigating the judgment process can be complex, but we make it simple. We handle everything from filing an abstract of judgment to working with the county clerks office to ensure your judgment is enforced. We also provide guidance on related issues, such as the satisfaction of judgment or satisfaction of judgment to set aside, ensuring you understand your options at every step.
If you’re searching for a judgment collection attorney near me, our Manhattan-based team is here to help. We have deep knowledge of New York’s legal landscape, including judgment enforcement New York regulations, and we work closely with local courts to ensure your judgment collection efforts are successful. We are accessible and ready to assist, no matter where you are in the state.
Collecting a judgment can be fraught with challenges, especially when debtors take steps to avoid payment. At David I. Mizrahi Law P.C. are experienced in overcoming these obstacles, ensuring that your judgment collection efforts succeed.
One of the biggest challenges in judgment collection is when debtors hide their assets to avoid paying the judgment. We use advanced techniques to uncover hidden funds, ensuring that the debtor cannot evade their obligations. We work tirelessly to enforce the judgment and secure your payout.
The legal process for collecting a judgment can be slow, especially if the debtor files a motion to vacate or applies injunctions to delay enforcement. We are skilled at navigating these delays, ensuring that your enforcement efforts move forward as quickly as possible.
When a debtor files for bankruptcy, an Automatic Stay is immediately triggered, halting all standard collection efforts. However, for an MCA funder, this does not have to mean a total loss. We pivot our strategy to the Federal Bankruptcy Courts to ensure your debt is not simply "wiped away."
Under 11 U.S.C. § 523, not all debts are dischargeable. If a merchant obtained funding through misrepresentation or diverted your "purchased receivables" willfully, we initiate an Adversary Proceeding.
If the merchant has no "equity" in the assets they are using to run their business, or if the receivables they are collecting are technically not property of the bankruptcy estate (because you purchased them in a "True Sale"), we move to Lift the Automatic Stay. This allows us to return to New York State Court and resume our CPLR Article 52 enforcement actions.
In Chapter 11 or Chapter 13 cases, we scrutinize the debtor’s proposed repayment plan. We object to plans that fail to recognize your UCC-1 Priority or attempt to treat your "True Sale" as a mere unsecured loan. We fight to ensure you are treated as a Secured Creditor with a "first-position" claim on the business’s remaining cash flow.
If you’re an MCA funder seeking to enforce a judgment, we are here to help. We provide A-Z judgment collection services. Our team is ready to assist with post-judgment collections, judgment enforcement, and more, ensuring that your judgment monetizes.
Contact us today to discuss your case and start the judgment recovery process. We can help you achieve your goals.
Lifespans vary by state. In New York, judgments are valid for 20 years, though the lien must be renewed after the first 10 years to remain enforceable against real estate. In New Jersey, judgments are valid for 20 years and can be renewed once for an additional 20 years, allowing for a 40-year total collection window. In California and Texas, judgments expire after 10 years but can be renewed indefinitely for additional 10-year periods.
An "automatic stay" is immediately put in place, halting all collection efforts.
While many debts can be discharged in bankruptcy, judgment liens on property may survive. Some debts resulting from fraud are not dischargeable, allowing the attorney to continue collection efforts after the bankruptcy is resolved. In MCA cases, if only the business files for bankruptcy, you can still pursue the individual guarantor (and vice versa).
It is often possible to negotiate a settlement, potentially for a lower amount, either directly with the attorney or with your own legal counsel. Get all settlement terms in writing to ensure the agreement is legally binding.
Yes. Under the Full Faith and Credit Clause of the U.S. Constitution, judgments are enforceable across state lines. An attorney can initiate a 'domestication' process, typically under the Uniform Enforcement of Foreign Judgments Act (UEFJA), to register and enforce the judgment in the jurisdiction where the debtor holds assets such as real estate, bank accounts, or business interests.
Major banks often invoke Koehler v. Bank of Bermuda Ltd., claiming that accounts outside of New York require a specific judicial Turnover Order. We are fully prepared to initiate 5225(b) petitions to satisfy these bank-specific requirements.
Once a judgment is satisfied, the creditor's attorney must file a "satisfaction of judgment" with the court, which removes the judgment as an outstanding debt. However, the judgment may remain on a credit report for up to seven years. We handle the final paperwork to ensure the file is closed and your firm is protected from any post-collection liability.