Can an MCA funder get a judgment today? If you signed a confession of judgment, yes. If not, the funder will have to file a lawsuit and the fastest that a lawsuit can result in a default judgment in New York or Pennsylvania state court is around a month to eight weeks after service of the lawsuit. If you actively defend against a lawsuit, the process will take several months at a minimum.
How fast can an MCA funder get a judgment if I signed a confession of judgment?
With a confession of judgment, an MCA funder can get a judgment against you on Day 0, as filing one is not technically a lawsuit.
Pennsylvania
Commercial confessions of judgment are still legal in Pennsylvania, where the funder simply files a “complaint in confession” at the prothonotary’s office. Court approval is not required unless the confession is more than 20 years old or is not attached to the complaint. See Pa.R.C.P. 2950 and 2951. To begin collection, the funder must give you written notice at least 30 days in advance of filing for a writ of execution under Pa.R.C.P. 2958.1; or file for a writ of execution without advance notice and serve the necessary forms with the writ under Pa.R.C.P. 2958.3. Under the latter, you may request a hearing the court must hold within three business days, with the writ stayed until then.
New York
In New York, CPLR 3218 still allows entry of a confessed judgment without an action. However, after 2019, it can only be filed in the county where you resided or maintained a place of business when the affidavit was signed or when it is filed, and it must be filed within three years of the date the affidavit was signed. Thus, if your business is not in New York, the funder will likely have to sue you instead. If it is, the funder could enter a confessed judgment within a few days and likely serve a restraining notice shortly after. If the balance was not all due when the affidavit was signed, the funder can only execute on what has become due.
How long after service can an MCA funder get a default judgment?
In state court, that can be as early as one month after service.
| Type of service | Time to appear/answer | Extra step before judgment | Earliest default |
|---|
| New York, served in hand by officer | Day 20 | 20-day mailing requirement (can run concurrently) | Day 21-ish |
| New York, LLC or corporation served via SOS | Day 30 | 20-day mailing to last known address | Day 31-ish |
| New York, guarantor served by substituted service | 30 days after service is complete | 20-day mailing to guarantor’s residence | Up to about day 60 |
| Pennsylvania Court of Common Pleas | Day 20 | 10-day notice of intent | Day 31-ish |
| Federal Court | Day 21 (60 days if you waived service) | Request entry of default from the clerk | Day 22 or later |
New York Supreme Court
You have 20 days to appear after personal delivery of the summons or 30 days after service is completed in the case of SOS service, substituted service, or service outside New York. See CPLR 320(a). If a guarantor is served by leave and mail, the plaintiff can wait up to 20 days to file proof of service and service is not completed until 10 days after filing. See CPLR 308. The plaintiff must also mail the summons at least 20 days before default judgment to your residence (if you are an individual sued on a contract) or to the company’s last known address (if served via SOS). See CPLR 3215(g). Many owners first learn of a default judgment from their bank because the company’s last known address on file with the SOS is out of date.
Pennsylvania Court of Common Pleas
After 20 days from service to respond with a notice to defend (Pa. R.C.P. 1026), the funder must mail you notice of its intent at least 10 days before filing the praecipe for the prothonotary to enter judgment (Pa. R.C.P. 237.1 and Pa. R.C.P. 1037). Service itself can come up to 30 days after filing in state, or 90 days out of state.
Federal court
After 21 days to answer (FRCP 12) the funder must seek entry of default, then default judgment (FRCP 55), except that the clerk can enter a default judgment for a sum certain if you never appeared.
How long do I have to undo the judgment?
As little as 3 business days or several years:
- PA Default Judgment: petition court to open within 10 days of entry with a draft answer showing a meritorious defense, and the court shall open the judgment (Pa. R.C.P. 237.3)
- PA Confessed Judgment: one petition to open raising all grounds, within 30 days after receiving notice (Pa. R.C.P. 2959)
- NY Excusable Default: 1 year after service of judgment and notice of entry (CPLR 5015)
- NY Not Personally Served: 1 year after discovering the judgment, and no more than 5 years after entry (CPLR 317)
If you were already served, see a checklist of what to do to respond to the lawsuit. If the funder hasn’t filed yet, see the warning signs and your window of opportunity to settle.
Frequently Asked Questions
Can a New York funder levy my bank account in PA with a New York judgment?
No, they have to transfer the judgment to PA first (42 Pa.C.S. 4306).
What is summary judgment in lieu of complaint?
It is a shortcut NY funders use under CPLR 3213 to go straight to summary judgment when suing on an obligation that is “an instrument for the payment of money only.” The return date can be no earlier than your 20 or 30 day deadline to appear. Funders have tried it against guarantors, and the court is supposed to decide if the MCA agreement with its reconciliation provisions is more like the plain guaranty agreement they try to sue on.
How fast can they get a judgment if I settle the lawsuit but fail to make a payment?
As fast as they want if the settlement stipulation says they can enter judgment without notice and without ever coming back to court, as held in Diesel Funding, LLC v Build Retail, Inc. (N.Y. App. Div., April 29, 2026). There, the court refused to undo the $1,476,330.68 judgment entered by the clerk after missed payments on a $1,150,740.12 settlement.
Can the funder wait forever to get a default judgment?
Not in NY. After a year of doing nothing following your default, the court shall dismiss the complaint as abandoned (CPLR 3215(c)).
Does the pending New York confession of judgment bill protect me now?
Not yet. The bill to prohibit confessions of judgment on less than $5,000,000 (S2305) passed the state senate 40 to 20 on May 13, 2026, but as of September 28, 2026 it is still in the Assembly Judiciary Committee and not yet the law.