6 Mistakes Business Owners Make When Lendr.online LLC Sues

If Lendr.online LLC has sued your business and you personally, do not make the mistake of thinking it is not about you. The six biggest mistakes to avoid: missing the deadline, assuming the LLC protects you, not reading the guaranty, moving assets, counting on the company’s bankruptcy, settling without a release in your name.

1. Missing the deadline

The case is against both you and the corporation. An answer filed only for the corporation does not protect you. In New York, you have 20 days if you were handed the papers in person in the state. If service was substituted, the deadline is 30 days after it is complete. Miss it and you risk your rights. There are strict limits to defending after a default and default can even cut off defenses that you would have won if you answered.

Keep watching the mail. A default judgment against you personally needs an extra copy of the summons sent by mail to your home address at least 20 days before the court can enter the judgment. Courts have different procedures to reopen a case after a default, but the sooner the better.

2. Trusting the LLC shield

If you own the LLC, you probably know there’s a shield protecting you from the company’s debts. Normally, an LLC member is not liable for the company’s obligations just because the member owns the company. Lendr knows it too, and gets around it. The usual way is a personal guaranty in which you promise to pay if the company does not.

The question is whether you made the promise or only the company did. There are other ways around the shield, too. Lendr can try to pierce the veil of the corporation and try to tie the obligation to you personally, for example, alleging fraud on the creditors. It is easier to allege than to prove.

3. Not reading the guaranty

Like any contract, it is good to start by reading its words. Make sure to read the exact copy that you signed. The first question is whether you signed it in your personal name. If you signed with your corporate title or just as a representative, there may be a gap that you can exploit. Be sure the debt claimed really falls within the terms of the guaranty. Some guaranties are only for certain loans, others cover every promise the company makes. Keep an eye on the rules you had to follow to cancel it. Did the company make false statements to induce you to sign?

Check usury too: New York criminal usury covers loans over 25% a year. But it is only a defense if it is really a loan, not a true purchase of future receivables. A recent ruling from the Georgia Court of Appeals in a Lendr.Online guaranty case shows that it can be tricky to prove a loan is usurious. In January 2026, it found that the reconciliation clause, no fixed term and no payment if bankrupt kept usury from being proven on the pleadings.

4. Moving assets in a panic

When money is tight, sometimes people try to make a quick move to protect themselves. Don’t. If a plaintiff notices you transferred money or property when being sued, the plaintiff may move to have the transfer undone, or to consider it as proof you meant to cheat the plaintiff. If you get sued, ask a lawyer whether any moves you plan are likely to be seen as fraud.

If Lendr gets a judgment, it opens the way to enforcement steps that can affect your life in several ways. In New York, one is a restraining notice served on your bank, freezing the account for up to a year. Disobeying it is a serious violation, contempt of court.

Know the exemptions you can claim. Find out before you jump. In Florida, there are broad exemptions covering your home, retirement savings and a head of family’s wages up to $750 a week.

5. Counting on the company’s bankruptcy

If you were sued over a corporate guaranty and the company files for bankruptcy, the automatic stay for the bankrupt company usually does not protect you as guarantor. Usually, the case against you can continue because you are not the debtor. Still, there are rare cases where the stay may benefit a guarantor. A discharge in the company’s bankruptcy does not automatically release the guarantor.

6. Settling without a release in your name

The creditor may agree to settle with the company without letting you off the hook. A release covers only the people and claims that are named. When negotiating a settlement, be sure your release covers you individually and states it releases the guaranty. When bargaining, pay attention to the details like what is meant by payment in full or default.

Knowing your exemptions will also give you a better sense of how the creditor will value your guaranty.

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.