It can take as little as a few days if your contract contains a confession of judgment that can be filed in a state with no delay between judgment and freezing your account, as in New York. Without one, it will take roughly five weeks, because the funder must sue you and state law prescribes how long you get to respond.
What has to happen between a missed payment and a frozen account?
Four things have to happen before a freeze:
- they determine that the debit failed;
- they declare you in default;
- they get a judgment or order against you;
- they serve it on your bank.
A bank returns an ACH debit for insufficient funds (return code R01) within two banking days.
Declaring default is not governed by statute, because the federal Fair Debt Collection Practices Act only applies to consumer debts. Your contract's events of default section controls it, and the day counts you'll see online are house estimates, not rules.
In New York, the freeze after judgment can be almost instant, because the creditor's attorney can issue a restraining notice pursuant to CPLR 5222(a), without a judge.
How fast can an MCA freeze your account with a confession of judgment?
If you signed a confession of judgment, the clerk can enter judgment merely upon the funder's filed affidavit, with no hearing and no notice to you.
New York
Under CPLR 3218(b), the affidavit can only be filed in the county where you resided when you signed or where you reside at filing, and a business "resides in any county where it has a place of business." You can only be executed against for the sum due, which is why funders accelerate the entire amount owed before filing. Once judgment is entered, your account can be restrained for its balance and all deposits over the next year, up to two times the amount of the judgment. See our article on how restraining notices work and how to get them lifted.
Pennsylvania
The funder's attorney files a complaint in confession with the prothonotary pursuant to Rule 2951. Under Rule 2958.1, they must give you at least 30 days notice before filing a praecipe for a writ of execution. Under Rule 2958.3, they need not give notice first; they merely serve the notice and petition form with the writ. If you file the petition, they cannot execute until the court holds a hearing, which must happen within 3 business days.
Ohio
Ohio still allows confessed judgments on non-consumer instruments, but under R.C. 2323.13 the court notifies you by certified mail or in person only after the judgment is entered.
How long does it take if the funder has to sue instead?
A lawsuit takes at least a month, because statute sets the response deadlines and default notices. In New York, you have 20 days after personal delivery. If they serve your LLC or corporation through the Secretary of State, you have 30 days from when service is complete, pursuant to CPLR 320(a). Under CPLR 3215(g)(4), they must also mail you notice at least 20 days before a default judgment, though this can run simultaneously. In Pennsylvania, you have 20 days to respond under Rule 1026(a), and they owe you at least 10 days notice before a default under Rule 237.1, which cannot be waived.
Earliest realistic freeze by path
| Scenario | What controls the middle leg | Realistic total |
|---|
| New York business with a confession of judgment | Clerk entry, no hearing; restraint on service | Days; no statutory wait after entry |
| Pennsylvania confession, no-notice track | Writ served with petition form; 3-business-day hearing if you file | Days, but you can pause it |
| Pennsylvania confession, notice track | 30-day notice before the writ | 30 days or more |
| New York lawsuit, LLC served via Secretary of State | 30 days to answer plus entry | About 5 to 8 weeks after filing |
| Pennsylvania lawsuit | 20 days to respond plus 10-day notice | About 5 weeks after service |
| Texas, Florida, California, Virginia | Lawsuit only | Weeks to months |
What states have abolished confessions of judgment?
Since September 1, 2025, Texas treats confessions of judgment in commercial sales-based financing as void under Tex. Fin. Code 398.055. In Florida, a power to confess judgment given before suit is "absolutely null and void" under Fla. Stat. 55.05. In California, a confessed judgment cannot be entered on or after January 1, 2023, and in Virginia a sales-based financing contract cannot contain a confession of judgment provision. A business in one of these states with a New York location can still face a confession filed there. A New York bill barring confessions of judgment on debts under $5 million, A7545, is still in committee.
If the funder won in New York but can't reach your bank there, it must file the judgment in your state first. Florida bars execution until 30 days after the clerk mails notice of the recording, under section 55.505(3). In Pennsylvania, the judgment becomes a lien on the date it is filed under 42 Pa.C.S. 4306, and there is no waiting period.
Can a funder freeze an out-of-state business before winning a lawsuit?
They can in New York, through prejudgment attachment, which hits hardest the out-of-state merchants who escape the confession rule. CPLR 6201(1) makes being a nondomiciliary or an unqualified foreign corporation a ground, and CPLR 6211 allows an order "without notice" and "at any time prior to judgment," with an undertaking of at least $500. Whether any route is lawful for you is covered in can an MCA funder freeze my bank account.
Frequently Asked Questions
Does the clock start on the day I miss a payment?
It starts when you default under your contract, and some contracts make closing your account, blocking the debit, switching processors or taking a second advance a default. If sales dropped and you asked for a reconciliation before missing a fixed debit, you may not be in default.
Do I get a heads-up before the bank is frozen?
Usually not. In New York, a natural person debtor gets a copy of the restraining notice within four days after it is served on the bank, and a business gets no notice at all. In Pennsylvania, if they skip the 30 days notice, the paperwork comes with the writ. In Ohio, the court notifies you after the judgment is entered.
How long can my account be frozen for?
In New York, a restraining notice lasts one year from service on the bank. A levy by execution is void after 90 days unless the money is transferred or they start a turnover proceeding. A natural person gets time to claim exemptions, but an LLC account gets no buffer.