MCA Defense Lawyers Can Help With Business Debt Settlement

As a business owner facing legal action from an MCA (merchant cash advance) lender, you may feel overwhelmed and unsure of where to turn. MCA loans can carry predatory terms, and disputes often end up in court. The good news is that experienced attorneys can help defend your business and negotiate a fair settlement of debts owed.

How MCA Loans Work

Merchant cash advances provide quick access to capital by essentially purchasing a percentage of a business’s future credit card sales. The business receives an upfront lump sum, and the MCA company collects daily payments until the balance plus fees is repaid.Unlike traditional bank loans, MCAs don’t have fixed interest rates or payment schedules. Fees are deducted as a percentage of daily credit card sales, typically ranging from 10-20%. There are also origination fees, application fees, and prepayment penalties.

Predatory Practices Of Some MCA Lenders

While MCA loans provide easy access to fast financing, some lenders employ predatory tactics:

• Exorbitant interest rates exceeding 100% APR
• Misleading statements about costs and terms
• Aggressive collections and threats of legal action
• Arbitration clauses barring class action lawsuits
• Confessions of judgement allowing lenders to seize assets without notice

These shady practices catch many business owners off guard when the bills come due. What initially seemed like a financial lifeline can quickly become an inescapable debt trap.

How MCA Defense Attorneys Can Help

If you find yourself facing legal action over an MCA loan, specialized defense lawyers can be invaluable advocates. Attorneys with experience fighting MCA lenders use proven strategies to protect client interests. They will:

• Negotiate Settlements: Work directly with the MCA company to settle debts at a discounted rate through lump-sum payments or structured payment plans.
• Defend Against Lawsuits: Represent clients in legal proceedings, making arguments against enforcement of unfair loan terms.
• Invalidate Judgements: Challenge confessions of judgement and other unilateral legal actions taken by predatory lenders.

Additionally, MCA defense lawyers provide advice tailored to each client’s specific situation regarding optimal solutions. With an attorney on your side, you gain leverage in negotiations and a skilled representative in court if necessary.

The Debt Settlement Process

The business debt settlement process typically involves the following steps, which your attorney will help guide you through:

1. Financial Review – We will conduct an in-depth review of your business finances to gain clarity on the full scope of debts owed. This allows us to provide specific advice tailored to your unique situation.
2. Settlement Negotiations – Your attorney will contact creditors such as MCA lenders and attempt to negotiate discounted lump sum settlements. We leverage legal arguments regarding invalid loan terms and procedural missteps to secure optimal deals.
3. Payment Plans – If a lump sum payout isn’t feasible, structured installment plans spreading out payments over 6-12 months may be arranged. Attorneys ensure negotiated plans are affordable and manageable.
4. Debt Management – Throughout the settlement process, attorneys advise on best practices for managing business finances, credit, and remaining debts in sustainable ways.

With an experienced legal team guiding negotiations and providing defense in court if necessary, business owners gain empowerment to resolve MCA debts on favorable terms. Consultations with specialized attorneys are invaluable for understanding all strategic options available.

Examples of Successful MCA Case Results

To better understand the positive outcomes achieved through legal representation in MCA disputes, here are a few examples* of settlements and judgements secured by defense attorneys:

• Reduced a $92,000 balance with an MCA lender to $22,000 lump-sum settlement (76% savings)
• Won dismissal of a lawsuit seeking over $150,000 from our client’s business
• Secured a payment plan stretching $118,000 of MCA debts over 3 years at 0% interest
• Negotiated return of garnished funds and withdrawal of a confession of judgement

*Individual results will vary based on case specifics. All clients receive personalized counsel regarding optimal outcomes given their unique legal and financial circumstances.

Why Choose Us As Your MCA Defense Law Firm

When facing legal action over an MCA loan, the stakes are high and specialized legal skills are required. Here is what sets our firm apart:

• Exclusive Focus – MCA cases are all we do. Your case receives undivided attention from start to finish.
• Proven Results – Our track record of favorable verdicts and settlements speaks for itself.
• Financial Clarity – We take time to analyze debts and cash flow to tailor advice and strategy.
• Full-Service Counsel – Guidance on business credit repair, accounting, and long-term planning.

We also offer free consultations, flat-fee billing options eliminating surprise charges, and access to financing if needed.Schedule a consultation today to discuss your rights and options. Our team is always available to help business owners navigate MCA disputes and achieve financial freedom. The sooner you contact us, the more leverage we have to negotiate effectively on your behalf.

Frequently Asked Questions

Do I need an attorney to deal with legal threats from an MCA company?Retaining legal counsel is highly recommended when facing demands for repayment or other adverse actions from MCA lenders. Attorneys have the expertise to defend your interests and negotiate optimal settlements. Going it alone against seasoned lawyers for finance companies is extremely risky.What are my options if I can’t afford to pay back the full amount demanded?Your attorney will review the finances of your business and personal assets to structure a realistic payment plan or lump sum settlement you can manage. In some cases debt reduction exceeding 50% may be negotiated with MCA lenders. Financing options are also available if needed to fund a deal.Can an MCA lender force my business into bankruptcy?While it is rare, some predatory MCA companies do push businesses into bankruptcy as a legal strategy to secure repayment on unfavorable terms. Experienced defense lawyers can help you avoid this worst case scenario through navigating the settlement process.What are the risks of ignoring threats of legal action from an MCA provider?MCA lenders have been known to secure judgements allowing them to freeze bank accounts, garnish wages, and place liens on property without advance notice. They may also damage your business credit rating. Working with counsel promptly is key to getting ahead of any potential aggressive collection efforts.Have more questions? Schedule a free case review with our legal team. We are always happy to discuss your situation and help you understand all of your rights and options. Defending your business begins with a simple phone call.