Wisconsin Business Debt Settlement and Merchant Cash Advance Lawyers

Wisconsin business owners struggling with debt have options. While bankruptcy or debt settlement may seem like the only choices, working with experienced Wisconsin business debt and merchant cash advance lawyers can open up more customized debt relief solutions.This article provides an overview of debt settlement, merchant cash advances, and legal options for Wisconsin businesses in financial distress. We’ll also share why it pays to work with lawyers experienced in these areas of law.

Debt Settlement for Wisconsin Businesses

Debt settlement involves negotiating with creditors to accept less than the full amount owed as payment in full. Companies like Delancey Street specialize in debt settlement for small businesses.However, there are downsides to be aware of:

• Debt settlement companies often advise clients to stop paying creditors. This rarely motivates settlements and often triggers late fees and penalty interest rates, growing balances even more.
• Any amount forgiven in settlement is considered taxable income by the IRS. Surprise tax bills can shock unwary business owners.
• Success rates for debt settlement companies are extremely low, often less than 10% according to the FTC. Yet fees are invariably high regardless of results.

When Debt Settlement Works Best

If you’ve already defaulted on business debts, nonprofit debt settlement may provide the help needed to negotiate discounts and structure affordable repayment plans. Nonprofit status ensures fairer fees and aligned incentives.Businesses current on debts may still benefit from debt settlement in some cases. The key is working with experienced lawyers to first evaluate all options, not just settlement.

The Merchant Cash Advance Trap

Desperate for cash, many small business owners turn to merchant cash advance companies pitching fast money. But easy money often comes with a catch.Merchant cash advance loans carry sky high effective interest rates, often exceeding 100% APR. And repayment terms border on predatory:

• Daily repayments are taken automatically as a percentage of credit card sales, regardless of actual income. This can drain cash flow rapidly.
• There’s no fixed end date on repayments. The lender keeps taking its cut until the advance is repaid, whenever that might be.
• Default triggers draconian contract terms letting the lender raid bank accounts at will for repayment. Legal defenses are limited.

Avoiding the Merchant Cash Advance Trap

As with debt settlement, consulting experienced lawyers beforehand is key to avoiding merchant cash advance pitfalls. Alternatives like bridge loans from traditional lenders often provide cheaper financing on better terms.And if you’ve already signed a predatory merchant cash advance contract, legal options still exist to fight back against unfair collection practices.

Working With Experienced Lawyers

Navigating complex debt relief options while running a business is next to impossible. Working with lawyers experienced in these areas of law helps ensure you:

• Get expert advice on the pros, cons and alternatives for your situation, not a one-size-fits-all pitch.
  
• Have strong legal advocates on your side, not just debt settlement salespeople.
• Benefit from attorneys bound by fiduciary duty to serve your best interests when providing counsel.

Why Delancey Street Stands Out

Most debt relief companies only know how to do one thing, push debt settlement whether it makes sense or not.Delancey Street takes a different approach, bringing together debt settlement expertise AND extensive legal experience.Our team includes lawyers focused on debtor rights in areas like:

• Bankruptcy
  
• Debt collection defense
  
• Merchant cash advance litigation
• Commercial debt litigation
  
• Corporate restructuring

This breadth of legal knowledge allows Delancey Street to go beyond one-dimensional debt settlement sales pitches. We start by fully assessing your situation and explaining options, always putting your best interests first.If debt settlement does make sense, our team includes certified experts to negotiate effectively on your behalf. And attorneys are involved at every step to ensure proper legal protections.

Get Help From Delancey Street’s Business Debt & MCA Lawyers

Wisconsin business owners struggling with debt and predatory merchant cash advances deserve real help.Delancey Street provides that help by combining extensive debt settlement expertise with experienced business debt attorneys focused on serving your best interests.We encourage any Wisconsin business needing debt relief or facing merchant cash advance problems to schedule a free consultation. Speak directly with our lawyers and debt experts with no obligations.Or call 212-210-1851 to talk now about your situation and options. Our team is always ready to help Wisconsin business owners regain financial freedom.