Chloe Meltzer | October 19, 2022
Summary: Is Lincoln and Morgan or Kabbage suing you for a debt? SoloSuit can help you take a stand and win in court.
If Lincoln and Morgan have been calling you to say they represent Kabbage, then you might be part of a debt collection lawsuit. You may have borrowed from Kabbage because they offer easy loans with an application decision in minutes. Applying for a loan gives Kabbage access to your business performance and credit score in order to determine eligibility for a loan. If your application is accepted, Kabbage will offer immediate access to funds. With lines of credit up to $250,000 in all 50 states, the loans can be used for working capital needs such as inventory, renovations, and payroll.
While these loans are easy to obtain, it's just as easy to fall behind on your Kabbage loan payments. If this happens to you, Kabbage might hire Lincoln and Morgan to represent the company and file a lawsuit against you. Here's everything you need to know about Kabbage, Lincoln and Morgan, and how to win in court.
Purchased by American Express in 2020, Kabbage is a technology-based company offering business funding to small businesses that are struggling with cash flow. You may think you need quick cash for your business, and finding Kabbage can feel like the help you were looking for.
. While Kabbage claims to offer loans of up to $200,000 to small businesses, the patent periods are short. This means it can be difficult to pay them back.
However, loans with Kabbage are offered as lines of credit. They offer either 6, 12, or 18-month installment loans. If you have one line of credit, you can typically also withdraw multiple loans from the line of credit. Despite this, each loan has its own loan agreement and terms. You will pay fees on the loan amount but not the line of credit in the form of an equal amount each month. You may even be required to sign a confession of judgment if you default. Because of this form of loan, it can often lead to default.
Lincoln and Morgan is first and foremost a “mediation firm,” which essentially means they are lawyers for hire. With a network of attorneys throughout the US, Lincoln and Morgan specializes in representing creditors and helping collect on defaulted debts. This firm also focuses on commercial mediation and UCC lien enforcement solutions. So, if Kabbage is suing you for a debt you owe and Lincoln and Morgan is connected to the case, it's because this is the firm representing Kabbage.
Because Kabbage loans are designed to those with the intent to give businesses quick access to cash, they often lead to struggles with business debt and loan default. Kabbage often boasts that it can offer alternatives to merchant cash advances. However, this type of loan can drain your business of much-needed cash, which leads to default. In most cases, short-term loans or small business lines of credit are better options. They are more affordable and less dangerous.
There are many proven debt relief strategies that can help your business get out of debt. You can find a solution to what feels like a never-ending payment on a business loan, or go into default. It is essential you respond to all inquiries about the loan, and if you are sued for the loan, attempt to resolve it. If Kabbage takes you to court over the debt, here's how you can respond and win.
If Kabbage is suing you for a debt you owe, hope is not lost. You can represent yourself in court and win. Here are 3 simples steps you can take to beat Kabbage (represented by Lincoln and Morgan) in court:
Now, let's break down each of these steps to give you the best chance of winning your case.
The first step to beating Lincoln and Morgan and Kabbage in court is to respond to the lawsuit by filing a written Answer with the court. This is one of the main mistakes debtors make when it comes to a lawsuit; in fact, almost 90% of people sued for debt automatically lose simply because they do not respond. Don't be one of these people!
By failing to respond to the notice, Kabbage will most likely file a motion for default judgment against you. This gives Kabbage the legal right to take money from your bank account, garnish your wages, and seize your property. Most of the time, a default judgment also includes attorney's fees, court costs, and interest to the original balance as well. So you might end up paying way more than you owed in the first place.
In your Answer, do not admit liability for the debt. Instead, you should force the creditor to prove the debt as well as your legal responsibility for it. Check out this video to learn more about drafting a strong Answer:
It is important that you respond within the time period set by the court Summons. The deadline to respond is anywhere from 14-30 days depending on which state you're in. If you miss this deadline, default judgment will likely be awarded against you.
When you are sued for debt, the “burden of proof” rests on Kabbage. This means that they must prove you are responsible for the debt, that they can legally sue you, and that you owe a specific amount.
If you challenge Kabbage's right to file a lawsuit against you, then they are forced to prove the debt is yours. You can do this by including a section in your Answer with your affirmative defenses. These are reasons that Kabbage does not have a case against you. Here are some common affirmative defenses:
Once you've drafted your Answer and asserted your affirmative defenses, make sure to file it in court within the deadline. Don't forget to print a copy and serve Kabbage's attorneys, or most likely Lincoln and Morgan. This is very important, because if you don't serve the opposing party, the court might reject the validity of your Answer.
To learn more about these three steps, check out the video below. SoloSuit's founder, George Simons, breaks down each step and further explains how to win a debt collection lawsuit:
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.
"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
You can ask your questions on the SoloSuit forum and the community will help you out. Whether you need help now or are just looking for support, we're here for you.
Here's a list of guides for other states.
Being sued by a different debt collector? Were making guides on how to beat each one.
Is your credit card company suing you? Learn how you can beat each one.
Need more info on statutes of limitations? Read our 50-state guide.
Need help managing your finances? Check out these resources.