Served by NanoFlex Capital? 5 Deadlines That Decide the Case

If NanoFlex Capital has had you served, the deadline that decides the case comes first. In New York state court, you generally have 20 days to respond. In federal court, you have 21 days. Four more clocks follow it.

Notices, reminders, and payment negotiations do not extend a court deadline. Anything the funder’s representative or attorney says does not affect the deadlines, but the actual date of service does. Save the complete papers and write down when and how they were received, the postmark date if delivered by mail, or the way that it was delivered if personally served by a process server.

1. The time to answer

For New York court cases, the 20-day time limit is most common. It is 30 days if served by a state official, left with another person, or nail and mail. If you are a corporation, you need to be represented by a lawyer in most New York courts. An attorney can help you identify the deadline and the defenses that are available. If a court summons has any errors, you should still answer within the deadline. If you ignore the summons, there could be a money judgment against you.

A funder may file a lawsuit against the business and any owner who signed a personal guarantee, and each defendant will need to respond. Find the Personal Guarantee document and find out who signed it.

2. The arbitration demand

A piece of paper sent by a funder is not always a lawsuit, so don’t assume that it is. Lawsuit, arbitration demand or confession are three different procedures. It’s important to find out what kind of procedure you were served, before the deadline runs. The funder can serve an arbitration demand instead of suing. If they warn that objections must be raised within 20 days, the court can reject your objection later that there was no valid arbitration agreement. The only real way to stop the arbitration that way is to ask a New York court to do it within the 20 days.

3. The confession of judgment

A confession of judgment means that if they have a signed affidavit from you agreeing to a judgment, they can get it without a trial. Under New York rules, if you signed a confession of judgment with the funder, they can file it only within three years after the affidavit was signed, and only in the county where you lived or had a place of business. They cannot file it anywhere they want. Confessions of judgment are not allowed in some states, or are restricted in some states. If a confession of judgment was signed, check who signed, which state is named in it, and if anything was filed. If the funder sues on the contract instead, keep in mind a New York contract lawsuit generally must be started within six years after the breach.

4. The default judgment clock

The court is not going to give them a default judgment unless they move for it. They must take steps toward a default judgment within one year after you defaulted, or the court must dismiss the case as abandoned unless the funder shows sufficient cause. If your company was served with the summons through the Secretary of State, the funder must mail an extra copy of the summons to your last known address at least 20 days before any judgment against you. If you fail to appear by a deadline, this does not mean that the lawsuit is over. If you missed the deadline, bring the papers to an attorney promptly rather than waiting for the funder to do something.

5. The judgment windows

A default judgment can be challenged with a motion to vacate. The deadline is usually one year after you are served with the judgment and notice of entry. If you were never personally served and you had no knowledge of the case in time, you can ask the court to vacate the judgment. That can be any time within one year after you learn about the judgment. There is also an absolute limit of no more than five years after the judgment was entered. An appeal must be started within 30 days after you are served with the judgment and a notice of entry. Whether you can challenge the judgment, and how quickly, depends a lot on what court the case was in and what the facts are. When you talk to an attorney, the court, the case number, the name of the debtor and the amount of the judgment will be helpful. If the judgment was entered by the court, the funder may start procedures to enforce the judgment. That could mean a freeze on your bank account, putting your money out of your reach.

Get Legal Advice Immediately

While you are thinking about these deadlines, don’t jump on any of the bigger moves too soon. Talk to an attorney before you move money, switch banks, close accounts, order vendors to redirect receipts, or make transfers. If you need to show anything about your financials to a client or funder, be very careful to keep it accurate as things develop.

And if you do not understand the papers that a funder or collector has served on you, or if they look like a lawsuit, get legal advice immediately. If they are actual legal papers, your answer in court is more important than any plan the funder’s representative is offering. If you have been offered financing or a settlement, you should not commit or agree to it without legal review.

A free contract review costs nothing and takes a day or two. Call (888) 837-7053, or send the agreements to Delancey Street for a straight read on your options.