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MCA Defense Lawyers Provide Expert Guidance on Business Debt Relief

Getting behind on business debts can feel overwhelming and scary. Between merchant cash advances (MCAs), loans, lines of credit, and other financial obligations, it‘s easy for companies to accumulate more debt than they can reasonably manage. If you‘re struggling under the weight of business debt, know that you have options – and the expert MCA defense lawyers at Delancey Street are here to help.

How We Can Help With Your Business Debt Situation

Our legal team has extensive experience dealing with all manner of business debt, from simple bank loans to complex MCA agreements. We’ve successfully defended and resolved legal issues for companies of all sizes.When you work with us, here‘s what we can do:

  • Conduct In-Depth Financial Review: We’ll thoroughly examine your company’s finances to understand all debts owed and identify the optimal path forward. This allows us to provide tailored advice for your specific situation.
  • Negotiate With Lenders: We can act as legal intermediaries to negotiate debt reductions, alternate repayment plans, settlements, and other arrangements with your lenders and creditors.
  • Defend Against Lawsuits: If any of your lenders pursue legal action over unpaid debts, we can vigorously defend your company’s interests in court.
  • Explore Bankruptcy If Needed: While always a last resort, we can guide you through business bankruptcy filings if that becomes the best option.
  • Oversee Debt Management Plans: If debts need active management over an extended timeframe, we can create customized debt management plans and oversee their execution.

The key is that you don‘t have to tackle business debt alone. We know you may feel scared and overwhelmed, but our legal team is here to help get your finances back on track. Let‘s explore your options together.

Common Questions About Business Debt Relief

Dealing with overwhelming business debt inevitably leads to many questions about the debt relief process and your legal options. Here are answers to some of the questions we hear most often:

See also  Albuquerque MCA Defense Lawyers Business Debt Relief

What are the main types of business debt relief?

There are three primary avenues for legally reducing or eliminating business debt:

  • Debt consolidation and management plans
  • Debt negotiation and settlement agreements
  • Business bankruptcy filings

The right approach depends on your specific situation, debts owed, company assets, and other factors. Our lawyers can advise which strategy is best suited for your needs after reviewing your finances.

Can I negotiate debt reductions or alternate repayment plans?

In many cases, yes. Creditors and lenders will often negotiate debt settlements, reductions, alternate payment plans, or other arrangements rather than force a default or pursue legal action.An experienced business debt relief lawyer can act as an intermediary on your behalf to negotiate favorable terms. We leverage our legal expertise to get you the best possible outcome.

What debts can be discharged through bankruptcy?

Business bankruptcy filings most often occur under Chapter 7 or Chapter 11 of the bankruptcy code. The eligible debts for discharge differ slightly:

  • Chapter 7 – Discharges most unsecured debts like credit cards, lines of credit, unpaid vendor bills, etc. Exceptions are things like taxes and fraudulently obtained credit.
  • Chapter 11 – Discharges the same debts as Chapter 7, but also provides more flexibility for managing secured debts like equipment leases, commercial property leases, etc.

Talk to our legal team to understand exactly which of your business debts could be discharged through bankruptcy.

How long does the business debt relief process take?

This varies widely based on the complexity of your situation, chosen path forward, number of creditors involved, and other variables. However, you can generally expect:

  • Debt management plans – 6-24 months
  • Debt settlement agreements – 2-12 months
  • Chapter 7 bankruptcy – 3-6 months
  • Chapter 11 bankruptcy – 6-24 months
See also  Anchorage MCA Defense Lawyers Business Debt Relief

We move as quickly as possible while ensuring your legal rights are protected.

Defending Against Merchant Cash Advance (MCA) Lawsuits

Among the many business debts that companies accumulate, merchant cash advances (MCAs) can be among the most problematic. MCA lending practices are often predatory in nature, relying on deceptive language and absurdly high repayment terms hidden in fine print agreements.When cash-strapped businesses inevitably struggle to meet unrealistic MCA payment schedules, it frequently results in lawsuits and other legal action initiated by unscrupulous MCA providers.–> If you are currently facing an MCA-related lawsuit, know that help is available. Our team of MCA defense lawyers has successfully fended off these lawsuits for multiple clients over the years.There are various strategies we leverage to defend against MCA legal action, such as:

  • Challenging Improper Lending Practices – We scrutinize the original MCA agreement to identify deceptive language, usurious interest rates, or other violations that can invalidate the agreement. This often gets lawsuits dismissed quickly.
  • Proving Overestimation of Future Receivables – MCA contracts base repayment schedules on the future value of a business’s credit card receivables. We’ve frequently proven these values are egregiously overestimated as grounds for dismissing a lawsuit.
  • Negotiating Alternate Repayment Plans – Since legal action is expensive for MCA providers as well, we can often negotiate alternate (and more reasonable) repayment plans in lieu of a lawsuit.
  • Seeking Bankruptcy Protection – As noted earlier, Chapter 7 and Chapter 11 business bankruptcy filings can discharge MCA debts under certain conditions. We help you navigate that path if beneficial.

The bottom line is that MCA lawsuits don’t have to be financially devastating. An experienced legal team can stand by your side and fight back against shady MCA lending practices. We offer free consultations to review your situation and discuss options.

See also  Alaska MCA Defense Lawyers Business Debt Relief

MCA Case Study – Restaurant Supply Company

To understand how our MCA defense lawyers can help, let’s walk through a real-world exampleJanet was the owner of a small restaurant supply company in Phoenix that sold commercial kitchen equipment to food establishments across Arizona. COVID-related disruptions took a heavy toll on revenue over 18 months. Facing cash flow shortages, Janet took out a $75,000 merchant cash advance agreement to cover expenses while awaiting the return of customers.However, as the pandemic dragged on, business remained slow. Janet quickly realized the exorbitant interest rates and absurd repayment schedule for the MCA – nearly $20,000 per month – would be impossible to manage. She restructured payments three times, but eventually missed several months in a row.The MCA lender immediately filed a lawsuit seeking repayment of nearly $300,000 – far more than the original $75,000 advance. Janet was terrified about losing her business as legal threats from the lender intensified.Fortunately, a friend referred her to our MCA defense lawyers for assistance. We quickly identified violations in the original agreement, including deceptively worded clauses and criminally high interest rates buried in fine print legalese.Within two months, we successfully got the lawsuit dismissed entirely on the grounds of improper and predatory lending practices. The original MCA agreement was deemed unlawful. Janet still owed the $75,000 principal to the lender, but we helped negotiate a reasonable 24-month repayment schedule. She kept her business without paying exorbitant legal fees or usurious interest rates.




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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"Great choice for business owners who need a trustworthy partner"
$350,000 MCA Restructured Over 2 Years

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