Titan Asset Purchasing purchases defaulted loans from QuarterSpot, Inc., whose loan agreements contain “choice of venue” clauses providing for litigation in Virginia.
QuarterSpot loans also require small business owners to personally guarantee their loans. So when Titan Asset Purchasing sues a business, it also sues the business owner, personally.
Choice of venue: Arlington Circuit Court
Both QuarterSpot and Titan Asset Purchasing obtains hundreds of judgments annually against defendants all over the country. The location of the business is irrelevant. If a business defaults on its loan, then the litigation will take place in the Circuit Court of Arlington, Virginia. QuarterSpot requires this as part of its loan agreement. “Choice of venue” contract provisions predetermine where legal proceedings will take place. QuarterSpot also applies its choice of venue clause to arbitration.
Once Titan Asset Purchasing obtains a judgment in Virginia, it hires local counsel in the jurisdiction near the defendant, domesticates the judgment, and attempts collection directly against the owner. Often, the business has already gone under; the business owner remains the only entity against which to enforce its judgment.
Typically, business owners are not liable for the debts of their businesses. QuarterSpot, however, checks the business owner’s personal credit rating before it decides to extend credit, and they require a personal guarantee on every loan they make. Titan Asset Purchasing subsequently names individual business owners as defendants in every lawsuit it files. The business owner’s personal liability on that loan gives rise to concurrent liability for business and business owner alike.
Titan Asset Purchasing is able to obtain a very high percentage of default judgments in the lawsuits it files because the business owners do not live near enough to Arlington, Virginia to mount a defense themselves. That’s where we come in.
Lawsuits in Arlington Circuit Court
Lawsuits in Arlington Circuit Court are initiated by the filing of a warrant in debt. Once served, you must take action to avoid a default judgment. Virginia general district court have very short timelines.
Do not simply ignore a creditor because your business has closed, especially if you have personally guaranteed a business loan. You must mount a defense. Do not allow a default judgment to be entered simply because the business is going under or because you live far away from the choice of venue. Creditors like QuarterSpot and Titan Asset Purchasing will use a default judgment against you personally.
Do not file anything with the court or talk to opposing counsel before you talk to an attorney. Lee Legal provides debt defense to clients facing lawsuits in Arlington General District Court, Arlington Circuit Court, Alexandria General District Court, and Alexandria Circuit Court.