New York Merchant Cash Advance Froze Your Bank Account? How to Challenge a Restraint or Marshal Levy

New York Merchant Cash Advance Froze Your Bank Account?

Did you wake up to find your business bank account frozen after a merchant cash advance (MCA) lawsuit? If payroll, rent, and vendor payments are due, find out what legal paper caused the freeze before assuming the money is already gone.

New York MCA account frozen? Call Credible Law at 888-201-0441 for a case evaluation.

In New York, an MCA funder that has obtained a judgment may serve a restraining notice on a bank. The bank can then restrict access to the account. A New York City marshal or county sheriff may also be involved in enforcing the judgment through a levy. An information subpoena is different: it requests information and does not, by itself, freeze an account.

What should you do today?

1. Call your bank and request the restraining notice, levy paperwork, creditor name, case number, court, and amount being held.
2. Get the court file. Check whether there is a judgment, when it was entered, and how the lawsuit papers were allegedly served.
3. Preserve records. Save bank notices, statements, the MCA agreement, payment history, and any summons or judgment papers.
4. Speak with a New York litigation attorney promptly. Depending on the facts, counsel may seek an emergency order to show cause asking the court to stay enforcement, release or limit the restraint, and, where grounds exist, vacate a default judgment. Filing an order to show cause does not automatically unfreeze the account.

Can a New York MCA bank freeze be reversed? Sometimes. The answer depends on the judgment, the account ownership, how the creditor obtained the judgment, and the papers served on the bank. If you first learned about the lawsuit when your account stopped working, tell counsel immediately. A challenge to service may be relevant, but the court must decide whether there are grounds for relief.

Was your business never properly served? Does the restraint reach an account belonging to a different entity? Is the amount disputed, or is the freeze broader than the judgment permits? Those details can affect which motion to bring. Ask the bank whether the funds are restrained or already turned over; that distinction matters when seeking urgent relief.

Credible Law helps business owners connect with legal assistance for merchant cash advance lawsuits, frozen accounts, default judgments, and collection actions across Queens, Brooklyn, Manhattan, the Bronx, Staten Island, Long Island, Yonkers, White Plains, New Rochelle, Mount Vernon, Albany, Buffalo, Rochester, Syracuse, and New York State.

Business account frozen after an MCA judgment? Call Credible Law at 888-201-0441 or visit CredibleLaw.com to discuss the papers and your options.

Credible Law · 888-201-0441

General information only. Legal options depend on the court papers and the facts of your case.