Invision Funding LLC Litigation: 5 Reasons Default Judgment Is the Real Risk

If you’ve received a letter from Invision Funding or a court summons or complaint, you’re probably worried that it could lead to a court judgment. If the case is allowed to go to default, the default judgment is what can really do the damage. If Invision Funding has filed a suit against you and you don’t respond and defend yourself, the court will likely enter a default judgment. These judgments allow creditors to use various collection techniques against you. If Invision Funding, LLC obtains a default judgment against you, it could be difficult to unwind. Be careful, and don’t ignore the lawsuit.

1. The deadline comes fast

The law provides you with a certain amount of time to respond to a lawsuit, and ignoring the lawsuit will not make it go away. If you miss that deadline, the court will likely enter a default judgment against you. Be sure to read your court documents carefully and make note of the date to respond. In New York, if you are personally handed a summons, you have to answer within 20 days. If someone else receives a summons and a copy is mailed to you, you must respond by the end of 30 days after service is complete.

But sometimes the papers may not get to you. They might be left with a receptionist or a former employee, or they might be sent to an old address. This can lead you to miss the deadline to file your answer and respond to the lawsuit.

Be aware that the lawsuit may not be filed near your home. Invision Funding, LLC is based in Virginia, and its servicer, Kapitus Servicing Inc, pulls payments directly from the merchant’s credit card sales. A New Jersey restaurant sued in New Jersey had its case transferred to federal court in Virginia.

2. Nobody checks the numbers

A judgment based on bad math is just as valid as a judgment based on the correct number, so the court will not double-check Invision Funding, LLC’s numbers for you. If Invision Funding gets a default judgment against you, the judgment is likely to reflect the full accelerated balance, plus default fees, attorney’s fees, and court costs. With a default judgment, the court enters a judgment without testing any of the facts and assumptions. Often, the amount is higher, sometimes much higher, than if you had fought.

In New York, the court clerk can enter a default judgment without a judge if it is a case that asks for a “sum certain,” meaning a fixed amount. If Invision Funding, LLC files the request within a year of the default, the clerk can enter the default judgment against you without you saying anything to anybody. If Invision Funding, LLC gets a judgment against you this way, you will owe the amount stated in the judgment, along with interest of 9% a year.

3. Your bank account freezes first

There isn’t much that will make your heart stop faster than finding your account has been frozen. In New York, once Invision Funding LLC gets a judgment against you, it can move against your bank account right away, without any court hearing. Invision Funding, LLC’s attorney can send a “restraining notice” to your bank, and your money can be frozen up to a year after the bank is served. Only amounts the law protects are spared. If you pay your rent out of your bank account, the rent money could get stuck in the account freeze.

Once the account is frozen, the creditor can move to levy the account. That is when the money actually comes out. If Invision Funding has a personal guaranty from you, your own personal accounts can be frozen too. Beyond your accounts, in New York a judgment becomes a lien on your real property in that county for ten years. A judgment can often be enforced in other states.

4. Your bargaining power disappears

Once Invision Funding, LLC gets a judgment against you, it has the power to negotiate with you from a place of strength. There is no reason to offer you less than it is already getting, especially if it has frozen your bank account. Before it gets a judgment, a creditor like Invision Funding is always facing the uncertainty of court proceedings, the defenses you might have, and its own costs. So the creditor may settle for less than the full amount. But once a judgment is entered, the settlement discussions often switch to the full amount. A motion to vacate a default judgment can sometimes change that.

5. The window to undo it closes

If you don’t act quickly, you may miss your opportunity to undo a default judgment. In New York, you can ask the court to “vacate” the default judgment and set it aside. You have one year from being served with the judgment and notice of its entry to make this request. You would have to convince the judge there was an “excusable default” and “a potentially meritorious defense.” If the court grants your motion to set aside the default judgment, the case would go back to being an active lawsuit, but Invision Funding, LLC would not have a judgment against you. And you would have the chance to settle it more favorably, or even win.

If you are not personally served and not given notice of the summons in time, you may defend at any time within one year after learning of the judgment, but not more than five years after judgment. You have to show a meritorious defense.

One of the most common grounds to vacate a default judgment is “improper service.” This means the right person was not served, or that the summons was not delivered to the right place. You may also be able to show the court lacked jurisdiction over you.

The sooner you take steps to undo the default judgment, the better. It’s much harder to get money back after it’s taken than when it’s just frozen. The first step to figure out the deadline is to pull the court docket and compare it with what you actually experienced. Check when papers were served, how they were served, and when they were filed in court. Note the date for any notice of entry of judgment. Then calendar every deadline. Finally, call an MCA lawyer with experience defending people against MCA enforcement actions.

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.