Fund Kite Capital Litigation: 5 Reasons Default Judgment Is the Real Risk

At a time when the economy is rough and bills are mounting, the idea of coughing up money for a lawyer is easy to resist. “Default judgment” is like a KO in boxing, except it doesn’t even require the other guy to get out of his corner. One side misses the fight, and boom: no trial, no defenses, no nothing. If you default a lawsuit against Fund Kite Capital, you’ll lose your case, and you’ll probably lose big. That’s why answering Fund Kite Capital’s complaint is essential - and default judgment often the real risk.

1. Silence counts as admission

If a defendant remains silent in a lawsuit, then every allegation in the complaint is admitted. In other words, the lawsuit happens as if the defendant never entered the courtroom. So even if Fund Kite Capital’s lawsuit says the sky is orange, the sun is purple, and the snow is green - if you default, it gets written down in the record and accepted as fact. That means that if Fund Kite Capital is saying that your debt should be given a certain value, you could get hit with that amount automatically. In New York, Fund Kite Capital can simply file an application for a default judgment with the clerk and get a judgment without you in the courtroom. Watch for confession of judgment, too: it’s like default judgment without Fund Kite Capital needing to file a lawsuit. That’s why it’s essential to read your contract carefully.

2. The clock is short

You have to move fast to answer Fund Kite Capital’s complaint and prevent a default judgment. Depending on the situation, you might only have 20 days to file an answer after being served with Fund Kite Capital’s papers. If you’re served through a state official or other specific methods, you’ll have 30 days to respond instead of 20. That’s important, because the wrong deadline could lead you to miss the chance to defend your case. Also check the plaintiff’s name so you answer the right case: Fund Kite Capital might be represented in court under the name AKF, Inc. If you’re being sued as a business, you will usually have to appear through a lawyer. It’s not enough to say that you are the owner and that you don’t have a lawyer.

3. A judgment unlocks collection

Once Fund Kite Capital wins a judgment, a door opens. They can attach your assets, freeze your accounts, and take other measures to grab money or force your hand. With a bank restraint, the judgment creditor can freeze up to twice the amount of the judgment in any bank accounts. If you own a business, judgment debt collectors can go after the money your customers owe you. They can also do that for your payment processor. In some states, it may be possible to seize business assets directly.

Fund Kite Capital can file a lien on your real property, which lasts for ten years. It can get a judgment that bears interest at 9% per year. Even if that all happens tomorrow, you will still have options.

4. Undoing a default is hard

Once Fund Kite Capital gets a default judgment, your options narrow. Usually, the way to challenge a default is a Motion to Vacate Judgment and enter a defense. That means taking the issue back to the judge and asking the court for a second chance. That’s not simple, and it can be even harder when you’re already under pressure. The outcome won’t be guaranteed. If you just missed the deadline, you will need to show that you had a “reasonable excuse” for missing your deadlines. You’ll also need to prove to the court that you have a defense to the lawsuit that is “meritorious,” which means that it’s worth going to court over.

If the problem was with the way Fund Kite Capital’s lawsuit was served, a mistake with the papers can help with a motion to vacate. New York limits your chances to get a default judgment reopened to one year from the time you’re formally served with notice of the judgment. You may have more time if you were never personally served. You may be able to get a default opened if you did not get notice of the court action against you. At a maximum, you can only get a default reopened this way within five years after the judgment.

5. Settlement gets costlier

With a default judgment, they will likely still negotiate. However, the total amount you owe will be higher. Also, with a default judgment on the books, they will have options to seize assets, so they may have less of a motivation to bargain.

Talk to an Attorney Right Away

To negotiate a debt down or defend a case, time is your most valuable asset. If you just got a summons or a notice from Fund Kite Capital, take the time to answer. Your first chance may be your best chance. If you think you’ve been sued by Fund Kite Capital, talk to an attorney right away. Many attorneys do not handle debt suits, or if they do, may not specialize in it. It’s important to get a lawyer who knows what you’re up against. The right time to negotiate is before Fund Kite Capital moves to get money from your accounts, or before Fund Kite Capital puts a lien on your property.

Don’t let them get an easy win in court - or a free KO with a default judgment. Respond to their lawsuit. Put up a fight. Settle if you need to, or get your day in court.

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.