Karish Kapital Filed Suit: 7 Questions to Answer Before You Respond

Ignoring a lawsuit from Karish Kapital will not make it go away. Karish Kapital may be the Plaintiff and have filed suit, but it doesn’t mean their claim is valid. There are many pitfalls that trap the unwary when a lawsuit is filed. Until you know and understand all the issues surrounding a lawsuit, it’s not advisable to respond or answer it yourself. Before you respond to a lawsuit by Karish Kapital you need to ask yourself seven questions.

1. What exactly arrived, and who is named

You should determine if it is actually a lawsuit or another kind of notice. Many creditors send a collection letter that is not a lawsuit. The lawsuit should be examined to see if you or anyone you know was listed as a Defendant. Even if a piece of paper looks blank or something may not be written on it, don’t throw it away. Sometimes these things are important later. At this point, you should evaluate and ask yourself who received it and whether they were personally handed the lawsuit or were mailed a copy.

2. When is your deadline

Once you establish that a lawsuit was filed against you and you or someone you know was listed as a Defendant, you will need to determine what time frame you have to respond. If you were mailed a copy of the lawsuit, often the deadline will be different than if it were handed to you. In New York state court, when the summons has been personally delivered to you inside New York, then you have 20 days to respond. If it was served some other way, like leaving it with someone else, then you have 30 days from the date service is considered complete to file your answer. After determining the response time, you need to make sure you don’t go too close to the deadline.

3. Where was the lawsuit filed

The second concern after deadline issues is determining which court the case was filed in. Which court hears your case and what laws are applied can make a huge difference in the way the lawsuit is handled and what your chances of winning are.

If you have received a lawsuit in New York and your business is located out of state, it’s natural to think the case has to be dismissed. That’s not the case though. This is why you need to examine the actual complaint and look closely at the contract. If the contract for which you are being sued includes provisions stating which court has jurisdiction over disputes, or which state’s law applies to disputes, or requires arbitration in a particular place or under certain laws, these may be enforceable.

4. Does the balance add up

On the face of the lawsuit you can check to see if the amount being requested for is what you owed. Just because the Defendant or Plaintiff lists a balance, or lists a particular amount of money being owed, it does not mean the amount owed is correct. You might also want to get more information on the various charges and what each one is for. You’ll need to get any contracts or agreements related to your case, as well as records of any communications with opposing side like emails, texts, or letters. You will need this information when you talk with an attorney to evaluate your case. A lawyer can help you determine if the amounts in the lawsuit are correct, or if mistakes were made.

5. Was it really an advance

It will be important to determine whether the money you received was a loan or if it was really an advance. Just because Karish Kapital says in a contract that the transaction is a “purchase” or an “advance” doesn’t automatically make it so. Getting to the truth of that means looking at what happened in the transaction, and whether the transaction looks more like an advance or a loan. To begin with, what are the terms of the repayment? Did you have to pay fixed payments, or did you have to pay them from daily sales? Paying a certain percentage of your future revenue may not look like a loan in the sense you are accustomed to it being. But, the legal question is whether there was a loan and if the interest is over the maximum allowable legal rate. This is a complex issue and one that is better evaluated and discussed with an attorney experienced in this area.

6. Is there already a judgment

Sometimes, a judgment has already been entered. You should go to the court where the case is filed, and determine if there is a judgment. The company has filed at least one case in Bronx County Supreme Court. For a case filed in the Bronx on April 11, 2019, a judgment of $264,309.43 was entered the day after the lawsuit was filed. It was entered by confession. Confession of judgment happens when a Defendant waives the right to defend the lawsuit in court, and allows the court to enter judgment in favor of the Plaintiff and in the amount the Plaintiff wants. In New York, it must be filed in the county where a Defendant lives or lived when it was signed. If Karish Kapital filed the confession of judgment in the wrong court, you may have grounds to have it vacated.

Either way, a judgment doesn’t have to be the end of the matter and may be subject to other action. Don’t just assume the judgment is valid. You have the right to try to file a motion to vacate the judgment based on reasons you failed to respond. Your motion should be made as soon as possible. Generally, it must be brought within one year from when the Defendant is served with written notice of the judgment. If a judgment has already been entered, act quickly to review your options.

7. Is the settlement worth signing

You may also get an offer to settle the lawsuit. It is natural to want to resolve the lawsuit quickly and move on. Don’t rush into a settlement, especially if you have time on the clock. Settlement agreements can contain many terms besides payment. Before signing a settlement check the releases and obligations. See what effect it may have on your other creditors and on your ability to stay in business. What if your payment was late? What if the payment method failed? If you don’t uphold your end of the deal, can the Plaintiff still file suit or enter a judgment against you for the remaining balance? Take caution with the wording of the settlement. You don’t want to be unknowingly putting your business at risk.

Besides the settlement terms, the lawsuit may be trying to enforce a personal guarantee against you. Read the personal guarantee carefully. Are all conditions of the personal guarantee met? Is there anything that must be done before you are responsible for paying any debt? Don’t assume that the lawsuit, your obligations, or the Plaintiff’s rights end after the settlement is signed.

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.