What a New York MCA Judgment Can Be Aimed At From Nevada
A merchant cash advance judgment is not a single threat. A New York creditor has different instruments for money already held, money coming in, and property in the debtor hands, and which ones are available depends on whether the debtor is the company or the person who guaranteed it.
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A judgment is not one threat, it is three
People hear "there is a judgment" and picture a single event. In practice a judgment creditor has a choice of directions, and understanding which is which makes the situation legible rather than simply alarming.
There are three targets:
- Money already sitting somewhere. A bank balance.
- Money on its way. Earnings, draws, payments from customers.
- Property in the debtor's own hands. Equipment, vehicles, cash, receivables.
New York has a different instrument for each, and they behave differently.
One: money already held
The restraining notice. CPLR § 5222 permits it to be issued by the clerk of the court or by the judgment creditor's attorney as an officer of the court, and served on any person holding property in which the judgment debtor has an interest.
Two features make it the usual opening move. It requires no fresh application to a judge, and it is served on the holder rather than on the debtor — so the bank acts before the account holder knows.
And the creditor generally knows where to send it, because the bank details were in the advance agreement. That is where the daily remittances came from.
Two: money coming in
The income execution. CPLR § 5231 requires it to specify the name and address of the person or entity from whom the judgment debtor is receiving or will receive money, the amount and frequency of that money, and the installments to be collected, together with a notice to the debtor to commence paying those installments to the sheriff. On the debtor's default, the execution is served on whoever is paying them.
Note the shape: a demand on the debtor first, then an instrument served on the payer. It operates over time rather than in a single stroke, and it is aimed at a person receiving money.
Three: property in hand
The turnover motion. CPLR § 5225 allows the judgment creditor to move, on notice to the judgment debtor, where it is shown that the debtor is in possession or custody of money or other personal property in which it has an interest, for an order that the money be paid over or the property delivered toward satisfaction of the judgment.
This one is a proceeding with notice, which makes it slower than a restraint and more flexible in what it can reach.
Which of the three applies to whom
This is the part worth sitting with.
A company judgment debtor has accounts, receivables and equipment. The restraint and the turnover motion are the natural instruments.
A guarantor — a person — has all of that plus earnings. Every one of the three is potentially in play.
Which is why, when a business fails, the guarantor frequently becomes the more practically exposed defendant. A company with no assets is a judgment nobody can collect. A person with a salary, an account and a house is not. That asymmetry is not accidental; it is a large part of why a personal guarantee is required when the advance is written.
What the limits are
Each of these instruments has limits, and this page does not state them. The exemptions, caps and protected categories were not researched for this draft, and a figure asserted confidently and wrongly would be worse than the gap.
What can be said is that the limits exist, that they differ between instruments, and that they differ again depending on whether the asset sits in New York or in Nevada — which is the next point.
The state line
All three instruments are New York instruments. Reaching an asset located in Nevada involves Nevada procedure as well, and that needs counsel admitted here. The New York question — whether the judgment should stand at all — is the one that makes the rest unnecessary if it is answered the right way.
What to do first, from Nevada
- Establish who the judgment names. Company, guarantor, or both.
- List what each of them actually has, and where it is held.
- Get the judgment and the docket from the New York county and index number.
- Deal with the New York judgment and the local collection separately. They are different problems in different states.
A restrained account covers the first instrument in detail, and how an MCA lawsuit is defended covers the case behind the judgment.
Sources
- N.Y. CPLR § 5222, Restraining notice (New York State Senate)
- N.Y. CPLR § 5231, Income execution (New York State Senate)
- N.Y. CPLR § 5225, Payment or delivery of property of judgment debtor (New York State Senate)
Every case turns on its own agreement, facts and procedural posture. Nothing on this site is legal advice or a prediction of any outcome.
Our firm
Who handles the case
Migir Ilganayev, Esq. founded Ilganayev Law Firm, PLLC in 2017, the same year he was admitted in New York. He is also admitted in New Jersey and Florida.
- Practising since
- 2017
- Admitted in
- New York, New Jersey and Florida
- Law school
- New York Law School
- Appears in
- State and federal courts
- B.A., Political Science and Philosophy of Law, Brooklyn College, City University of New York, 2012
- J.D., New York Law School, 2015
- Judicial intern to the Hon. Martin M. Solomon, Kings County Supreme Court
- Public Service Certificate for pro bono service
How it works
How your case moves
This is the shape of a defended merchant cash advance lawsuit. A judgment already entered, or an account already frozen, runs on its own track alongside it.
Every case turns on its own agreement, facts and procedural posture. Nothing on this site is legal advice or a prediction of any outcome.
FAQ
Questions people ask at this stage
What can a creditor go after first?
Usually whatever is easiest to find, which is a bank account. A restraining notice can be issued by the clerk or by the judgment creditor attorney as an officer of the court and served on the holder of the property, so it needs no new application.
The account details are rarely a mystery. They were in the original agreement, because that is where the remittances were taken from.
What about money that has not arrived yet?
There is a separate instrument for that. An income execution is directed at money a person is receiving or will receive, specifying who pays it, how often and in what installments, with a notice to the debtor to start paying the sheriff.
Can a creditor reach property I am holding?
New York allows a motion, on notice to the judgment debtor, where it is shown the debtor possesses money or other personal property in which it has an interest, for an order that it be paid or delivered toward satisfying the judgment.
Is the guarantor more exposed than the company?
Differently exposed, and often more practically exposed. A failing company may have nothing worth taking, while a person has earnings, accounts and property. That asymmetry is a large part of why funders insist on a personal guarantee at the outset.
Does any of this happen automatically in Nevada?
No. These are New York instruments operating under New York authority, and reaching an asset that is actually located in Nevada involves Nevada procedure as well. That second half needs counsel admitted here, while the judgment itself is argued where it was entered.
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Book a consultation
Pick a time that suits you, then a few short questions about what arrived and when. It takes about two minutes, and the consultation is free.
- The call is with Migir Ilganayev directly, not an intake desk.
- He asks what arrived and when.
- He reads the agreement and the payment history against each other.
- He tells you where you stand and what the options are.
- The consultation is free. Fees for representation are discussed on the call and depend on the matter.
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