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Beat Everest Business Funding in Court

Chloe Meltzer | July 21, 2022

Summary: Sued by Everest Business Funding? SoloSuit can help you take a stand and win in court.

Based in Doral, Florida, Everest Business Funding is an online provider of loans and merchant cash advances. Typically they provide these loans, including merchant cash advances programs, to small businesses in need of working capital. If you default on a loan with Everest Business Funding, you may receive information in the mail regarding a lawsuit. It is essential to respond to this lawsuit as soon as possible. Here's everything you need to know about Everest Business Funding and how to beat them in court.

What is a merchant cash advance?

Merchant cash advances are a specific amount of money that is given to a business, in exchange for a percentage of their future credit card sales or receivables. Unfortunately, this can lead to trouble for the receiver.

When a provider such as Everest Business Funding gives a merchant cash advance, they will take a portion of each transaction thereafter until the advance plus a fee is paid off. These types of short-term loans have incredibly high APR rates, which can end up running new businesses into the ground.

Cash advances are often used to finance more expensive products, as compared to small business loans. The cash advance can be used to pay for equipment, hire employees, make renovations, or any other business expense. The problem lies if you cannot pay back the advance, or there ends up being a stop in the flow of income from your business. When Everest Business Funding doesn't get its money back at interest, you might find yourself in the middle of a debt lawsuit.

Responding to a debt lawsuit

When you default on payments with Everest Business Funding, or any other type of debt, you may find that the creditor eventually seeks payment. If you have defaulted for over 180 days, they might pass the matter on to a credit agency. From there, the agency will contact you about the debt or file a lawsuit if they cannot reach you. Debt lawsuits begin with a court Summons and Complaint coming in the mail. After you receive this, it is important to answer quickly.

If you do not respond to the lawsuit, then the court may enter a default judgment against you. This could give Everest Business Funding the right to garnish your wages, seize your bank accounts, and place a lien on your property. For this reason, you should draft and file a written Answer as soon as possible.

How to draft and file an Answer

When you are sued by Everest Business Funding, you are the defendant and they are the plaintiff. When the lawsuit is filed and put before a court, you will no longer be able to respond by phone or with a letter. Your only choice is to file a legal response called an Answer.

Things to keep in mind when filing an Answer to a debt collection lawsuit:

  • Never admit debt liability
  • Always make the creditor prove the debt is yours
  • Force the creditor to prove your responsibility for the debt
  • File the official Answer with the Clerk of Court
  • Ask for a stamped copy of the Answer from the Clerk of Court
  • Send the stamped copy certified mail to the lawyer of the plaintiff

You will also notice a specific period of time on the lawsuit notice. This can be anywhere from 14-35 days after you receive the Summons, depending on which state the case is in. Missing the deadline is the same as not responding, which can lead to a default judgment. To learn more about drafting and filing an Answer, check out this video:

SoloSuit can help you file an Answer in all 50 states.

Ways to respond to a debt collection lawsuit

Challenge the Debt Collector's Right to Sue

One of the best ways to respond to a debt collectors lawsuit is to challenge their right to legally sue you. If they do not have the information to prove that they own your debt, they will not be able to continue with the lawsuit.

Ask For Documentation

Ensure you ask for all documentation in writing. You can also show up to the court hearing and ask for documentation. When asked, the debt collector or original creditor must provide:

  • The original credit agreement with proof of being signed by you
  • Documentation of the “chain of custody.” This includes all paperwork that has ever resulted from the debt including origination, who it came from, and that you owe it.

Push Back on Burden of Proof

The burden of proof is what creditors are debt collectors take on the responsibility of. When you are being sued for a debt lawsuit you can push back on the burden of proof and ask for them to prove the following:

  • Proof you are responsible for the debt
  • Proof the person suing you has the right to
  • That you owe a specific amount

Pushing back on this burden of proof is important because they will be required to prove the amount you owe, and how you owe it. It can include when the balance increased at different points in time, and whether it was increased by fees. This can lead to them not being able to do so, and being forced to drop the case.

Filing a Countersuit

Although you will need to deal with the debt, you cannot legally be harassed or be threatened with violence under the Fair Debt Collection Practices Act (FDCPA). If any of these violations occur, you may be able to file a countersuit.

Violations of the FDCPA include:

  1. Continued attempts to collect debt not owed
  2. Illegal or unethical communication tactics
  3. Failure to verify debt
  4. Taking or threatening an illegal action
  5. False statements or false representation
  6. Improper contact or sharing of info
  7. Excessive phone calls
  8. Calls before 8 am or after 9 pm

Check the Statute of Limitations

One of the best defenses to a debt collection lawsuit is the statute of limitations. The statute of limitations is a law that governs how long creditors are legally allowed to file a lawsuit for debt in court. The statute of limitations is different in every state, but it generally ranges between four to six years. When the statute time period ends, the debt is considered time-barred. It is good to note that you will still owe the debt, but you can not be legally taken to court.

It is important to also be aware that the statute of limitations will start on the last day you were active on the account. This means that if you used a credit card or drew funds from an account, or paid off the account, it will restart the clock on the statute of limitations. When debt collection starts, you will need to avoid paying on the debt to avoid starting the statute of limitations over once again. If the statute is expired, this is your best defense to a debt collection lawsuit.

What is SoloSuit?

SoloSuit makes it easy to respond to a debt collection lawsuit.

How it works: SoloSuit is a step-by-step web-app that asks you all the necessary questions to complete your answer. Upon completion, you can either print the completed forms and mail in the hard copies to the courts or you can pay SoloSuit to file it for you and to have an attorney review the document.

Respond with SoloSuit

"First time getting sued by a debt collector and I was searching all over YouTube and ran across SoloSuit, so I decided to buy their services with their attorney reviewed documentation which cost extra but it was well worth it! SoloSuit sent the documentation to the parties and to the court which saved me time from having to go to court and in a few weeks the case got dismissed!" – James


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