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Baltimore MCA Defense Lawyers Business Debt Relief

If you run a small business in Baltimore and have merchant cash advance (MCA) debt, you may be struggling and looking for help. Delancey Street has attorneys who can provide legal defense as part of our comprehensive business debt relief services.

Overview of Our Business Debt Relief Services

Our phone number is 212-210-1851. When you call, you’ll speak directly with an expert dedicated to your case. We’re not a law firm, but we partner with experienced attorneys as part of our full-service debt relief program.In addition to legal help disputing MCA debt, we also provide:

• Debt restructuring and settlement – We negotiate with your creditors to reduce balances and create affordable payment plans
• Ongoing money management – We help businesses develop healthy financial habits to avoid future debt
• Personalized guidance – You get dedicated support from a financial expert throughout the process

Why MCA Loans Can Be Problematic

Merchant cash advances seem enticing because they provide quick access to capital without requiring strong credit or collateral. However, they often involve predatory terms that trap small businesses in expensive debt cycles.Some common issues with MCA loans include:

• Exorbitant interest rates and fees
  • Rates over 50% are typical
• Overreliance on bank account withdrawals
  • Lenders can drain accounts, jeopardizing other obligations
• Limited underwriting
  • Approvals based on bank statements alone ignore total debt burdens
• Quick approvals incentivizing maximizing volume over loan quality

These characteristics make MCA loans risky for lenders and small businesses alike. Unfortunately, many companies realize too late that the loans create cash flow problems rather than solve them.

Legal Defenses Against MCA Lenders

If you have unmanageable MCA debt, consulting a lawyer experienced with these instruments can be invaluable. Depending on your situation, viable legal defenses may include:

Challenging Unconscionable Loan Terms

Courts have ruled some MCA provisions unconscionable. For example, agreements allowing lenders to help themselves to all revenue in a business account have faced scrutiny. An attorney can review your contracts to identify potentially unenforceable clauses.

Disputing Breaches of Covenant of Good Faith

Lenders have a legal duty to act in good faith with borrowers. However, some MCA companies use aggressive collection tactics violating this covenant. If account sweeps or harassment from your lender threaten business operations, legal action may be possible.

Challenging Confessions of Judgement

Many MCA contracts contain confessions of judgement allowing lenders to obtain awards without proof of default. But these provisions do not guarantee enforceability. If used improperly, they may be vulnerable to being vacated.Note: The defenses above require experienced legal counsel to pursue and will vary case-by-case.While not every business will have grounds for a lawsuit, understanding where MCA contracts potentially overreach matters. Even simply demonstrating willingness to dispute egregious terms can motivate settlements on more reasonable grounds.

How Our Debt Relief Lawyers Can Help

Too often, small business owners feel isolated and overwhelmed trying to resolve MCA debt independently. Delancey Street has the legal partners and financial experts to change that.When you enroll with us, attorneys can immediately get to work contesting improper loan terms. Meanwhile, our advisors look holistically at your situation to map out customized debt relief.Through coordinated legal, negotiating, and consulting efforts, many possibilities exist to resolve MCA debt, such as:

• Securing principal reductions from lenders
• Lowering interest rates to affordable levels
• Converting balances into more manageable instruments
• Recovering unfairly withdrawn funds

While every case differs, our goal is positioning you for financial stability going forward. That means addressing outstanding debt as well as helping implement ongoing best practices.

Contact Delancey Street for a Free Consultation

If MCA debt has your Baltimore business struggling, please reach out. Our legal and financial experts can help you regain solid footing. We offer free consultations to review your situation and map out a game plan.You can learn more and schedule an appointment on our website or by calling 212-210-1851. Our team looks forward to helping you resolve debt, achieve financial freedom, and thrive running your business.

Frequently Asked Questions

What specific legal defenses can attorneys use against predatory MCA loans?

Three potential defenses include:

• Challenging unconscionable loan terms in contracts like unreasonable account sweeps
• Disputing breaches of the covenant of good faith through aggressive collection tactics
• Contesting improperly obtained confessions of judgement

The viability of these defenses depends on state laws and specific contract provisions. Experienced attorneys are best positioned to identify where cases for legal action may exist.

What debt relief assistance does Delancey Street offer in addition to legal help with MCA loans?

Our services include:

• Debt restructuring and settlement negotiation
• Ongoing money management guidance
• Personalized financial consulting

This full-service approach allows us to help clients resolve outstanding debt while also building healthy financial habits for their business.

What outcomes can I expect working with your debt relief program?

While outcomes vary case-by-case, examples of potential results include:

• Reduced MCA principal balances and interest rates
• Affordable monthly payments through debt restructuring
• Converting MCA debt into more manageable instruments
• Recovering unfairly withdrawn funds into business accounts

Through customized legal and consulting efforts, our goal is always positioning clients for long-term financial stability