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MCA Defense Lawyers Provide Expert Assistance With Merchant Cash Advance Debt

Merchant cash advances (MCAs) can provide quick access to capital for small businesses. However, the terms of MCA agreements are often predatory, with exorbitant interest rates and aggressive collection tactics. If your business is struggling with MCA debt, specialized legal assistance can help protect your assets and negotiate reasonable repayment terms.

How MCAs Work and Why They Can Be Problematic

A merchant cash advance provides a business with a lump sum of capital in exchange for a percentage of future credit card sales. It is not technically considered a loan, so MCA companies can bypass state laws capping interest rates.

  • High factor rates of 1.2 to 2 mean businesses repay 120-200% of the original advance
  • Daily repayments as a percentage of credit card sales, usually 10-20%
  • No fixed end date – you pay until the full amount plus fees is repaid
  • Personal guarantees often required, putting your personal assets at risk

This structure makes MCAs very high-risk for small businesses. If sales dip too low, aggressive collection efforts kick in, demanding full repayment within days. Lawyers specializing in MCA debt can help you respond effectively to protect yourself.

MCA Collection Tactics Place Immense Pressure on Business Owners

When a merchant cash advance goes into default, collection efforts ramp up quickly:

  • Threatening calls demanding immediate full repayment
  • Freezing business bank accounts
  • Attempts to seize personal assets pledged as collateral
  • Lawsuits and threats to force bankruptcy

Facing such tactics, many business owners panic and agree to whatever terms the MCA company demands. 

An experienced lawyer can strategically respond to take control of the situation.

MCA Defense Lawyers Level the Playing Field

Specialized legal services for MCA debt relief even the odds by:

  • Carefully analyzing MCA agreements for exploitative or illegal terms that may invalidate part or all of the debt.
  • Responding strategically to collection lawsuits with affirmative defenses and counterclaims to fight back.
  • Negotiating reasonable repayment terms based on what the business can actually afford.
  • Defending business owners’ personal assets from seizure by separating business and personal finances.
  • Forcing mediation or settlement if a fair agreement cannot be reached outside of court.
  • Exploring bankruptcy if necessary to eliminate or restructure unsustainable MCA debt through Chapter 7 or Chapter 11.
See also  Alabama MCA Defense Lawyers Business Debt Relief

A Dedicated Legal Team Stands Ready to Defend Your Business

Delancey Street‘s seasoned MCA defense lawyers have helped business owners across industries escape crippling MCA debt by:

  • Winning lawsuits and invalidating MCA debts – Our thorough contract reviews uncover exploitative terms that courts won’t enforce.
  • Shielding personal assets from seizure – We place personal finances out of reach legally.
  • Negotiating affordable long-term repayment plans – We work to create realistic payment plans MCA companies will accept.
  • Restructuring debt through bankruptcy – If needed, we help businesses file Chapter 7 or Chapter 11 to eliminate or reorganize debts.

Attorney Samuel Delancey leads our MCA defense team. He has successfully defended business owners against dozens of predatory MCA companies, saving clients hundreds of thousands in waived debts and predatory fees.

Our Legal Services Offer Comprehensive MCA Debt Relief

We offer customized legal solutions addressing every aspect of problematic MCA agreements, including:

Contract Review and Debt Invalidation

  • Identifying unlawful terms related to interest rates, repayment amounts, collection fees, etc.
  • Preparing affirmative defenses and counterclaims asserting violations
  • Seeking court judgments invalidating debts with illegal or unconscionable terms

Defense Against Collection Lawsuits

  • Responding quickly to collection complaints with detailed legal defenses
  • Gathering evidence revealing unethical collection practices
  • Deposing MCA company executives and demanding evidence substantiating debts
  • Having debts invalidated or negotiating favorable settlements

Personal Asset Protection

  • Placing personal real estate, investments, and valuables into protected legal entities such as trusts or LLCs
  • Transferring ownership stakes in businesses to insulate personal assets
  • Suspending personal guarantees and confession of judgment clauses signed under duress

Bankruptcy Filing Assistance

  • Gathering documentation needed to file Chapter 7 or Chapter 11
  • Structuring bankruptcy petitions to maximize debt elimination/restructuring
  • Advising on running businesses during and after bankruptcy proceedings
  • Negotiating with creditors and trustees to protect assets during bankruptcy

Debt Negotiation and Settlements

  • Direct negotiations with MCA companies to reduce owed amounts by 60-90%
  • Structuring affordable long-term payment plans tied to business performance
  • Forcing mediated settlements when direct talks break down
  • Avoiding business asset seizure and eliminating personal liability

FAQs: MCA Defense Lawyers and Debt Relief

Do I need an attorney to deal with MCA debt?

You have the right to represent yourself, but MCA companies rely on business owners lacking legal expertise. Having an experienced lawyer levels the playing field.

How much do MCA defense legal services cost?

Our fees are very reasonable compared to large law firms. We offer fixed-fee arrangements and contingency deals where we only get paid if debts are reduced or eliminated.

Can you help if my assets are already being seized?

Yes! We can take immediate legal action to challenge or temporarily stop seizures while negotiating debts. Don’t wait until it’s too late.

What outcomes can I realistically expect working with your MCA defense firm?

Over 80% of our clients have had debts reduced by 50-90% through settlements or court judgments invalidating amounts owed. We also help structure affordable long-term payment plans when debts cannot be eliminated outright.

Can bankruptcy completely eliminate my MCA debts?

Chapter 7 bankruptcy can discharge unsecured debts like MCAs in many cases. Chapter 11 allows restructuring debts so they are sustainable long-term. Bankruptcy does have downsides, so we advise clients on all options.

If your small business is overwhelmed by predatory MCA debts, the expert attorneys at Delancey Street can help you regain control. Schedule a free consultation today to discuss your situation in confidence.

See also  Arkansas MCA Defense Lawyers Business Debt Relief


Delancey Street is here for you

Our team is available always to help you. Regardless of whether you need advice, or just want to run a scenario by us. We take pride in the fact our team loves working with our clients - and truly cares about their financial and mental wellbeing.

"Super fast, and super courteous, Delancey Street is amazing"
$500,000 MCA Restructured Over 3 Years
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$250,000 SBA Loan Offer in Compromise
"Great choice for business owners who need a trustworthy partner"
$350,000 MCA Restructured Over 2 Years

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