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MCA Defense Lawyers Can Help With Business Debt Relief

As a business owner struggling with debt, you may feel overwhelmed and unsure where to turn. Merchant cash advance (MCA) loans can offer quick money but also come with high fees and aggressive collection tactics that exacerbate financial issues. The good news is that experienced attorneys can help business owners in these situations by providing defense against MCA lenders and guiding them through the debt relief process.

How MCA Loans Work And Why They Can Be Problematic

Merchant cash advance loans provide businesses with quick access to capital based on a percentage of future credit card and debit card sales. Rather than a traditional loan, the MCA company purchases a share of the business’s future receivables at a discount. This means they will collect daily or weekly payments until the balance has been repaid – often within just a few months.While fast and easy to obtain, MCA loans charge very high effective interest rates ranging from 40% to 350% APR. They also use aggressive collection tactics that can severely impact cash flow if payments fall behind. Many business owners report harassment, threats of violence, lawsuits and even illegal debt collection practices when struggling to repay these debts.

Common Legal Issues Facing Business Owners With MCA Debt

As financial and legal pressures mount, owners can face lawsuits, bank levies, loss of merchant processing accounts that accept credit cards, and other major business disruptions. Some of the most common legal issues include:

• Breach of Contract Lawsuits – MCA companies frequently sue for breach of contract even over small payment delays or disputes. Fighting these lawsuits takes extensive resources and legal expertise.
• Improper Debt Collection – Federal and state laws protect consumers and business owners against harassment, threats and other overly aggressive collection tactics. Yet many MCA lenders disregard these restrictions.
• Confessions of Judgement – MCA contracts often contain confessions of judgement clauses waiving legal rights. Lenders can obtain fast judgements without properly notifying the borrower.
• Bank Levies – Struggling with payments often prompts MCA lenders to levy business bank accounts, freezing funds essential for paying employees, vendors and operating expenses.

The bottom line is that owners facing MCA legal action require specialized legal defense to avoid potentially catastrophic business impacts.

Why Defense Attorneys Can Be Essential

Navigating MCA lawsuits, bank levies, debt collection harassment and related issues requires specific legal expertise. Defense lawyers experienced with MCA lending can help protect your interests through services like:

• In-Depth Contract Reviews – Identifying unlawful or unenforceable provisions that may provide defenses against breach accusations.
• Responding to Lawsuits – Drafting answers, counter claims and discovery demands to fight back against breach of contract and collection lawsuits.
• Halting Improper Collection Efforts – Sending cease and desist letters citing relevant debt collection laws. Taking further legal action if needed.
• Negotiating Settlements – Leveraging defenses and counterclaims to negotiate reduced payoffs or restructured payment plans.
• Defending Bank Levies – Challenging improper levies to release frozen funds and restore account access.

The complexity of MCA lending means most general practice attorneys cannot provide truly effective representation. Specialist defense lawyers bring the right expertise to shield your business interests.

Additional Ways Attorneys Can Aid With Debt Relief

Beyond legal defenses and negotiations, attorneys can additionally help pursue financial remedies that improve cash flow to repay debts under more manageable terms. Potential options include:

• Obtaining Working Capital – Helping secure lines of credit, alternative business loans with better rates, or investor capital to breath financial life back into the business.
• Prioritizing Payments – Advising which creditors and debts to pay first to avoid legal actions that could severely disrupt business operations.
• Filing Bankruptcy – For some businesses facing multiple debts and lawsuits, bankruptcy may provide the clean slate needed to reorganize and rebuild. Experienced bankruptcy attorneys can guide this process.
• Rebuilding Credit – Advising steps to repair personal and business credit reports damaged by MCA payment issues. Good credit remains essential for any future lending needs.

The combination of legal defenses and financial remedies provides a powerful means for business owners to resolve MCA debt issues and regain solid financial footing.

Why Delancey Street Lawyers Can Help

Here at Delancey Street, our legal team provides dedicated, compassionate guidance to small business owners facing financial and legal hardships stemming from MCA lending. We understand how debilitating things like constant collection calls, lawsuits, bank levies and other aggressive measures can be. Our attorneys take great pride in protecting our clients’ interests and rights.We offer honest assessments and expert advice tailored to your unique situation. Where defenses exist, we leverage them assertively to halt collections and negotiate reduced settlements. In tandem, we explore debt relief options to improve cash flow while structuring realistic payment plans.Our passion is helping businesses move beyond MCA debt struggles to renewed financial health and continued prosperity. We offer transparent pricing with flexible payment options to ease the inherent stresses.If you own or manage a small business facing legal action from an MCA lender, contact our office for a free case review. Our experienced attorneys are ready to help you regain solid financial footing while defending your business interests.

Frequently Asked Questions

Struggling with aggressive MCA collections can raise many urgent questions and concerns. Here we answer some of the most common issues facing distressed business owners:

Can an attorney really help defend my business against an MCA company?

Yes, skilled MCA defense lawyers can provide vital protections. We leverage our extensive experience to spot contractual flaws, violations of lending laws, and other deficiencies. These form the basis of strong defense positions against lawsuits and bank levies. We also negotiate reduced settlements and alternate payment plans whenever feasible. Our first priority is always shielding your business from the most damaging consequences.

How much does hiring an MCA defense attorney cost?

Our flexible pricing matches your budget priorities. We offer free consultations to assess your situation and legal options. For representation, we charge hourly fees and fixed flat rates covering specific tasks. We can structure payment plans, including contingency fees allowing slower payments from debt relief proceeds. Our main goal is providing excellent legal defense while easing the financial burden as much as possible.

Can filing business bankruptcy help resolve my MCA debts?

For some distressed small businesses, Chapter 7 or Chapter 11 may provide a fresh start. Bankruptcy law halts collections and lawsuits, discharges qualifying debts, and allows restructuring of payment plans. An experienced bankruptcy attorney can advise if this path aligns with your goals and particular situation. Timing and eligibility factors also come into play. We help clients make fully informed decisions about bankruptcy’s costs versus benefits.

What if I can no longer make daily MCA payments at all?

We prioritize stabilizing cash flow first. If essential business expenses now exceed sales revenue, we can seek emergency injunctive relief in court. This temporarily pauses collections to allow catching up on payroll, taxes, vendor bills, etc. Next we negotiate reduced payoff amounts and longer payment terms. Getting urgent breathing room and resetting payments to feasible levels are key initial steps.

Can attorneys help if an MCA lender already sued my business?

Yes, skilled defense lawyers can still provide strong defenses against legal judgements. We immediately review lawsuit details to identify contractual flaws, lending violations, or collection abuse issues. We also counter sue for damages where appropriate. Our litigation experience gives distressed business owners their best chance of favorable outcomes in these scenarios. The sooner we get involved, the more leverage we typically have.If you have any other questions about MCA collections, lawsuits, bank levies or related financial and legal hardships, please contact us for answers and assistance. Our experienced team is always ready to help protect your business interests.

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