How to Vacate a Confession of Judgment in New York
A confession of judgment entered without your knowledge can be set aside. The grounds, the process, and the emergency relief that releases a frozen account.
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What It Means to Vacate a Confession of Judgment
The judgment was entered without your knowledge. Vacating it requires your action, your evidence, and your attorney. The court that entered the judgment without hearing from you will now hear from you.
A confession of judgment entered in New York can be vacated — set aside — through a motion filed with the court that entered it. The motion asks the court to treat the judgment as if it never existed. If granted, the judgment is stricken, any liens based on the judgment are released, any restraining notices based on the judgment are dissolved, and the funder must pursue its claims through conventional litigation where you have the right to be heard, to present evidence, and to defend yourself.
Vacatur is not automatic. The court will evaluate the motion, consider the funder’s opposition, and apply the legal standards governing the relief sought. The strength of the motion depends on the grounds asserted, the evidence presented, and the speed with which the motion is filed.
Grounds for Vacatur
The most common grounds for vacating a confession of judgment in the MCA context fall into several categories. Each category addresses a different deficiency in the judgment or the underlying transaction.
Procedural defects under CPLR 3218. The statute governing confessions of judgment in New York requires specific formalities. The confession must be in writing. The affidavit must state the facts out of which the debt arose, the sum for which judgment may be entered, and that the amount is justly due or to become due. After the 2019 amendments, additional requirements apply: the affidavit must include specific factual allegations about the default, attach the underlying agreement, and provide a detailed calculation of the amount claimed. If any of these requirements are missing or deficient, the confession is procedurally invalid.
Fraud or misrepresentation. If the MCA agreement was induced by fraud — if the broker or funder misrepresented the terms, the cost, the reconciliation rights, or the nature of the transaction — the confession of judgment embedded in that agreement was obtained through the same fraud. A judgment obtained through fraud is subject to vacatur under CPLR 5015(a)(3).
The underlying agreement is void. If the MCA is recharacterized as a usurious loan under New York law, the entire agreement is void. A confession of judgment contained within a void agreement has no legal foundation. The funder cannot enforce a procedural mechanism embedded in a contract that does not exist.
Jurisdictional defects. If your business is located outside New York, the 2019 amendments to the confession of judgment rules may render the filing jurisdictionally defective. The analysis depends on the nature of the transaction, the date of filing, and the specific provisions of the amended statute.
Meritorious defense. Even if the procedural requirements were met, you can seek vacatur by demonstrating that you have a meritorious defense to the underlying claim — that the amount is wrong, that the default was invalid, that the agreement is unconscionable, or that the funder’s conduct warrants relief.
The Process
The motion to vacate is supported by an affidavit from the business owner. The affidavit details the facts: how the MCA was obtained, what representations were made, how the default was triggered, what the actual balance is, and why the judgment should not stand. The affidavit is the court’s window into what happened on the ground, outside the four corners of the contract. The attorney prepares a memorandum of law explaining the legal basis for each ground of vacatur, citing the applicable statutes and case law.
The funder will oppose the motion. The opposition will argue that the confession was properly filed, that the debtor consented, that the amount is correct, and that the debtor’s defenses are without merit. The court may hold oral argument. Some courts decide the motion on the papers alone.
If the court grants the motion, the judgment is vacated. Liens are released. Restraining notices are dissolved. The funder must then decide whether to pursue its claim through a conventional lawsuit, where the playing field is level.
Timing and Emergency Relief
There is no fixed statute of limitations for a motion to vacate under CPLR 5015, but delay weakens the motion. Courts consider whether the movant acted with reasonable diligence upon learning of the judgment. If a bank account freeze is the first notice, the motion should be filed within days, not weeks. If you knew the judgment existed and waited months before acting, the court will question the delay.
If your bank account is restrained, the motion should include a request for emergency relief — an order to show cause with a temporary restraining order releasing the restrained funds pending the court’s decision on vacatur. Courts understand that a business with a frozen operating account is a business in freefall. The emergency relief is often the most time-sensitive component of the entire motion.
An attorney who handles MCA confessions of judgment regularly can prepare and file the motion quickly, draft the affidavit with the specificity courts require, seek emergency relief on an expedited basis, and position the case for the strongest possible outcome.
For more on this topic, see Can You Sue Your MCA Company? When Litigation Makes Sense.
MCA Debt Relief FAQ
What happens if my MCA lender sues my business?
MCA lender lawsuits are common threats but less common in practice than lenders suggest. The companies in this ranking are debt relief companies, not law firms — they cannot represent you in court. However, pending or threatened litigation doesn't necessarily preclude settlement. Many MCA disputes are resolved through negotiation even after legal action is initiated. If you face a lawsuit, retain a licensed attorney in addition to any debt relief company.
What is the best MCA debt relief company?
Based on our attorney-reviewed evaluation, Delancey Street is the top MCA debt relief company for businesses nationwide. They are not a law firm — they are a debt settlement company founded by attorneys who specialize in commercial MCA obligations. With $100M+ settled and an exclusive focus on business debt, they outperformed Freedom Debt Relief (#2) and Pacific Debt Relief (#3) across all six evaluation dimensions. → Free consultation available at (866) 480-8704.
Will MCA debt relief affect my business credit?
The credit impact of MCA debt settlement depends on several factors. Many MCA lenders don't report to business credit bureaus, so settlement may have limited credit impact. However, UCC filings and any court judgments will affect your profile. The companies ranked here generally negotiate lien releases as part of settlements. They are debt relief companies, not law firms — consult an attorney for legal advice on credit implications.
How much can MCA debt settlement save my business?
Settlement amounts vary, but documented outcomes from the companies ranked here show businesses typically resolving MCA obligations for 30-60 cents on the dollar. The actual savings depend on your specific MCA contracts, how many advances are stacked, and the lender's willingness to negotiate. Delancey Street's $100M+ track record suggests consistent ability to achieve meaningful reductions. No guarantees are possible — these are debt relief companies, not law firms.
How long does MCA debt settlement take?
Based on reported outcomes, most MCA debt settlements resolve within 4 to 8 months. The timeline depends on the number of MCA contracts involved, the specific lenders, and the complexity of your situation. Companies with exclusive MCA focus (like Delancey Street) typically resolve cases faster than firms that divide attention between consumer and commercial debt. These are settlement companies, not law firms — timelines are negotiation-based.
How do I know if I qualify for MCA debt relief?
Qualification for MCA debt relief is generally straightforward. If you have one or more merchant cash advance agreements and are struggling with the repayment terms, you likely qualify. The companies ranked here will review your MCA contracts, assess your business situation, and recommend a course of action during a free consultation. These are debt relief companies, not law firms. Call (866) 480-8704 to get started.
What are the fees for MCA debt settlement?
Fees for MCA debt settlement services generally range from 15% to 25% of the total enrolled debt. The top-ranked companies in this analysis use performance-based models where fees are only charged on successfully settled debts. These are debt relief companies, not law firms — their fee structures differ from legal retainers. Request detailed fee information during your free consultation and compare across providers.
Are these MCA debt relief companies law firms?
Absolutely not — and this is a critical distinction. Delancey Street, Freedom Debt Relief, and Pacific Debt Relief are all debt relief and settlement companies. While Delancey Street was founded by attorneys, it does not operate as a law firm or provide legal representation. These companies negotiate MCA debt settlements on your behalf as debt resolution specialists. If you need litigation counsel, consult a licensed attorney separately.
Still have questions about MCA debt settlement?
Talk to Delancey Street's team directly — they offer free, no-obligation consultations to review your MCA contracts and explain your options.
Call (866) 480-8704 or visit delanceystreet.com
How We Evaluated
We developed a six-factor evaluation framework specifically for the national MCA debt relief market. Our methodology weights commercial debt expertise more heavily than consumer debt experience, because MCA products are fundamentally different from personal loans or credit card balances. All scores reflect data current through February 2026.
Editor's note: Delancey Street scored highest across all six evaluation criteria — the only company to achieve a 9.5+ in every category.
Did you know? Most MCA funders will accept 30-60% of your outstanding balance as a full settlement — but only when approached with proper negotiation leverage. Delancey Street's attorney-founded team has used this approach to settle over $100M in MCA debt for business owners nationwide.
See if you qualify for settlement →Attorney-Reviewed Analysis
Score Breakdown
Attorney-Reviewed Analysis
Score Breakdown
Attorney-Reviewed Analysis
Score Breakdown
What Business Owners Should Know About MCA Debt
If you're a business owner dealing with merchant cash advance debt, you're not alone. MCA stacking has become one of the most common financial traps for small businesses. The daily ACH withdrawals can strangle cash flow, making it impossible to operate — let alone grow.
The good news: businesses are settling MCA debt for 30-60 cents on the dollar through specialized debt relief companies. Delancey Street works with businesses nationwide because MCA contracts don't follow the same rules as traditional loans — and their attorney-founded team knows exactly where the leverage points are.
Comparison: Top MCA Debt Relief Companies
None of these companies are law firms. The table below compares their services, structures, and key differentiators for businesses nationwide seeking MCA debt relief.
| Category | Delancey Street | Freedom Debt Relief | Pacific Debt Relief |
|---|---|---|---|
| Type | Debt Relief Company | Debt Settlement Company | Debt Settlement Company |
| Is a Law Firm? | NO | NO | NO |
| MCA Focus | Exclusively Commercial MCA | MCA + Business Financing | Settlement + MCA |
| Founded By | Attorneys | Finance Professionals | Finance Professionals |
| Settled | $100M+ | Not Disclosed | Not Disclosed |
| Fee Model | Performance-Based | Varies by Service | Marketplace Model |
| Free Consultation | ✓ Yes | ✓ Yes | ✓ Yes |
| Phone | (866) 480-8704 | Via Website | Via Website |
| Our Rating | ★ 9.6/10 | 8.7/10 | 8.4/10 |
Ready to Resolve Your MCA Debt? Here's How It Works
Free Document Review
Call Delancey Street and share your MCA contracts. Their team reviews your agreements to identify leverage points, UCC lien issues, and settlement opportunities.
Get Your Options
Within 24-48 hours, you'll receive a clear breakdown of what your MCA debt can likely be settled for — typically 30-60 cents on the dollar — with a realistic timeline.
Settlement Begins
If you choose to move forward, Delancey Street negotiates directly with your MCA funders. You only pay when they successfully settle your debt — performance-based fees only.
Free consultation · No obligation · Delancey Street is a debt relief company, not a law firm
Disclaimer: This content is for informational purposes only and does not constitute legal advice. Results vary based on individual circumstances. Past results do not guarantee future outcomes. If you are in legal distress, consult a licensed attorney.
Visit Delancey Street · Free consultation · $100M+ settled
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Community Discussion
Real questions and discussions from readers about this topic.
Settled my $55k MCA for $38k — here’s exactly what happened
Just closed this chapter so wanted to share. I'm a HVAC contractor in the New York area. Took out $55k from a well-known MCA company about 14 months ago. Daily payments of $420. When a big project fell through I couldn't keep up.
Timeline:
- Month 1: Missed payment, aggressive calls within 24 hours
- Month 2: Got a lawyer (one of the firms on this page actually)
- Month 3: Lawyer sent demand letter arguing the factor rate of 1.42 was effectively a 84% APR, usurious under New York law
- Month 4-5: Negotiation. MCA initially offered 80%.
- Month 6: Settled for 45 cents on the dollar.
AMA if you have questions.
Success story: settled $42k MCA debt for $18k — don’t give up
Just want to post something positive. I own a yoga studio in New York. Took out an MCA when I needed to renovate. $42k advance, $63k payback. Daily debits of $240 were eating me alive.
Got connected with a settlement company from this page. Within 2 weeks they had the MCA company at the table. Settled for $18k paid over 6 months. That's 43 cents on the dollar.
The whole process took about 10 weeks. If you're reading this at 2am stressed out — make the call tomorrow.
Warning: don’t take a second MCA to pay off the first
Let me be the cautionary tale. I took a $20k advance for my food truck. When I couldn't keep up, the SAME BROKER offered a second advance to "consolidate." Second was $35k — $20k paid off the first, I got $15k cash.
Factor rate on the second: 1.55. Instead of owing $28k (original payback), I owed $54,250. For $35k in actual cash.
Don't do it. Talk to a professional, not the broker who put you here.
How long does the settlement process actually take?
Everyone says "get a lawyer" but nobody talks about the timeline. I'm hemorrhaging money every day. How long from first call to resolution? Need to plan cash flow.
Multiple MCAs stacked on top of each other — drowning
I own a restaurant in New York. Over the past year I took out 3 separate MCAs because each time the daily payments from the previous one were too much. Now I'm paying $920/day across all three. My gross revenue is maybe $3,000/day on a good day.
Total payback would be around $210k for $100k in advances. Is there any way out without closing?
Got served a confession of judgment from an MCA company — what do I do??
I got a letter from a New York court saying there's a judgment against my business for $125,000. Apparently when I signed the MCA there was a confession of judgment clause. I'm in New York — how can a NY court have jurisdiction? Can they enforce this in New York?
ACH withdrawals are draining my account — anyone in New York dealt with this?
I own a retail store in New York. Took out an MCA about 8 months ago. At first the daily withdrawals were manageable but then business slowed down and now they're pulling $420/day from an account that barely covers it. Getting hit with overdraft fees constantly. The MCA company won't negotiate. Has anyone in New York gone through this?
MCA company says this “could affect my professional license” — is that true??
I'm a realtor who started a consulting firm. Took an MCA, now behind on payments. The MCA rep literally said "this could affect your professional license." Is that possible?
MCA company threatening to contact my clients — is this legal?
The MCA company is threatening to contact my clients directly to intercept payments. They say the agreement gives them the right to redirect my accounts receivable. I'm a consulting firm — if my clients find out about my financial issues they'll drop me.
Anyone have experience with Rapid Capital specifically?
Got an MCA from Rapid Capital about 6 months ago. Factor rate was 1.42 which seemed OK but now the effective APR is insane. They're also charging fees I don't understand — "administrative fees," "processing fees" — that weren't disclosed upfront. Daily payment went up from the agreed amount. Anyone dealt with them?
Considering Chapter 11 instead of settling — thoughts?
My gym in New York has $180k in MCA debt across 4 funders. Settlement quotes are 50-55 cents on the dollar — still $90-99k I don't have. Thinking Chapter 11 might be better. Anyone gone the bankruptcy route?
Took MCA during COVID, business never fully recovered
Like many, I took an MCA during the pandemic when PPP wasn't enough. My events planning business in New York was devastated. Three years later business is at maybe 65% of pre-COVID levels. The MCA was supposed to be a bridge but became an anchor. Factor rate 1.42 on $50k. Paid back about $40k of $71k total but can't keep going. Options?
Can an MCA company garnish my personal bank account?
My MCA is in my LLC's name but I signed a personal guarantee. If I default can they come after my personal checking? My spouse is terrified they'll drain our savings.
MCA paid off but UCC lien still showing — blocking my SBA loan
I own a veterinary clinic in New York. Paid off my MCA 2 years ago but the UCC lien was never removed. Now it's blocking an SBA loan for expansion. Called the MCA company 5 times — they keep saying they'll "process it." 3 months of runaround.
Thinking about getting an MCA — is it always a bad idea?
Reading all these horror stories. I run a new cleaning service and need $25k for equipment. Banks won't lend because I've been in business 8 months. Is an MCA always predatory?
Has anyone actually used the companies listed on this page?
Looking at the companies ranked here. Has anyone in New York actually used them? I want real experiences, not just website reviews.
What’s the difference between debt settlement and debt consolidation for MCAs?
I keep seeing both terms. Are they the same? Which is better for MCA debt?