Vacate the COJ. Lift the freeze. Save the business.
A Confession of Judgment lets a funder obtain a court judgment against you without notice and freeze your bank accounts the same day. If one has been filed, you may have hours, not weeks. Our team moves on day one — files the motion to vacate, defends the freeze, and negotiates the underlying debt while we do.
When the funder pulls the trigger, days matter.
A Confession of Judgment is a clause embedded in many merchant cash advance contracts that lets the funder file a judgment in court without prior notice or a hearing once they declare default. New York amended the rules in 2019 to limit out-of-state usage, but pre-2019 COJs and properly-filed in-state COJs are still being entered every day. The first sign for most borrowers is a frozen operating account.
From the moment a COJ enters, the funder can serve restraining notices on every bank where you hold accounts, every payment processor that touches your receivables, and every customer who owes you money. Your business can be operationally dead within 48 hours of filing — which is exactly why we move on day one of intake, not day ten.
The motion to vacate is the legal lever. It asks the court to undo the entered judgment based on procedural defects, statutory violations, post-2019 NY restrictions, fundamental flaws in the underlying contract, or fraudulent inducement. When the motion succeeds, the freeze lifts and you go back to negotiating the underlying debt from leverage instead of desperation.
3 scenarios, opened up
01
Funder filed a pre-2019 confession in NY against an out-of-state borrower. Bank accounts restrained.
- 01Pull the file: judgment, affidavit, underlying contract
- 02Verify CPLR § 3218 statutory compliance
- 03File order to show cause + motion to vacate
- 04Argue at hearing; lift restraining notices
02
Properly venued. Defects must come from the contract, the affidavit, or the service.
- 01Audit affidavit jurat & notarization
- 02Audit underlying MCA for usury exposure
- 03Negotiate carve-out before motion if leverage exists
- 04File motion if negotiation fails
03
Stacked-position borrower with confessions in multiple jurisdictions.
- 01Map every filing across courts
- 02Triage by enforcement urgency, then statute
- 03Coordinate motions to maximize leverage
- 04Negotiate global resolution
Most COJs are filed sloppily. The funders count on borrowers being too scared to fight. We change that math.
From same-day intake
to closeout
Every case is different. We move on day one because deadlines don't wait, and we give you a written, case-specific plan at intake.
Pull the docketed judgment, the affidavit, and the underlying contract. Identify the filing court and venue rules.
Draft the order to show cause and motion to vacate based on the statutory, procedural, and contractual defects we found.
Argued by licensed counsel from our network in your jurisdiction. We support with full record review and exhibits prepared during the intake-to-filing window.
Vacate, stipulate to a workable plan, or pivot to settlement leverage with the freeze removed and the funder on notice.
COJ Defense cases in all 50 states
Common questions
What is a Confession of Judgment?
A clause in many merchant cash advance contracts that lets the funder obtain a court judgment against you without prior notice or a hearing once they declare default. New York amended its COJ rules in 2019 to limit out-of-state usage. A filed COJ can result in immediate enforcement, including bank-account restraints.
Has a COJ already been filed against me?
You will typically learn about a filed COJ when your bank notifies you of a restraining notice on your operating account, when a payment processor receives a levy, or when a marshal serves you. If you suspect one has been filed, time is critical — call right away.
Can a COJ actually be vacated?
Yes. Many COJs entered before the 2019 NY amendments are vulnerable to vacatur for jurisdictional reasons. Properly-filed COJs may still be vacated for procedural defects in the affidavit, statutory non-compliance, or fundamental flaws in the underlying contract. Outcomes depend on the specific filing — we tell you a realistic read at intake.
What's the timeline once I engage you?
Intake happens promptly given the time-sensitive nature of COJ matters. Motions to vacate are drafted on a case-specific schedule. Court hearings are scheduled by the court calendar, not by us. We give you a written, case-specific plan at intake — never a marketing promise about hearing dates or restraining-notice timing.
What happens to the underlying debt if the COJ is vacated?
Vacating the judgment doesn't eliminate the underlying debt — it just removes the funder's enforcement lever. With the restraining notices lifted, you negotiate the debt itself from leverage instead of desperation. Most cases at this stage end in a structured settlement at a fraction of the original demand.
Is Delancey a law firm?
Delancey Street is not a law firm. We coordinate with a network of independent counsel who represent you directly when the case requires legal work. The attorney-client relationship is between you and the attorney. When you hire us and an attorney becomes necessary, we pay the costs — choose from our network of attorneys or any attorney of your choice, subject to terms and conditions.
Talk to a strategist about your coj defense case
Free initial review. We'll look at your contracts, the creditor mix, and what's actually triggerable in the next 30 days. No commitment, no sales pitch — just a real read on your situation.
Tell us what's happening.
COJ filed? Account frozen? Let's talk today.
1,000+ businesses settled. $100M+ in debt resolved. We can help yours, too.
