Utah Business Debt Settlement and Merchant Cash Advance Lawyers
Utah business owners facing financial hardship have options when it comes to dealing with debt. Debt settlement is one route that can help relieve some of the burden, allowing business owners to pay off debts for less than what is owed. Merchant cash advances are another option to obtain quick financing that can provide short-term relief. However, the legal intricacies around these debt solutions can be complex for the average business owner to navigate alone. This is where experienced Utah business debt settlement and merchant cash advance lawyers can provide invaluable assistance.
Understanding Business Debt Settlement in Utah
Business debt settlement involves negotiating with creditors to pay off a portion of debts owed in exchange for forgiving the remaining balances. It can be an attractive debt relief solution since it allows businesses to resolve debts for less than the full amounts. According to Utah statutes, as long as the settlements are negotiated in good faith, they are legally binding contracts once executed.
However, business debt settlement also comes with downsides. Settling debts typically requires lump-sum payments, which can be burdensome for cash-strapped companies. It also often involves paying settlement fees to debt relief services assisting with the negotiations. And settled debts can remain on business credit reports for up to seven years.
This is why enlisting experienced business debt settlement lawyers can pay dividends. They understand the intricacies of debt settlement laws and can provide counsel on the best approach based on a business’ specific circumstances. From reviewing settlement agreements to ensure favorable terms to negotiating with creditors directly, business debt settlement lawyers serve as invaluable allies.
Merchant Cash Advance Pitfalls in Utah
Merchant cash advances allow businesses to obtain quick financing by selling a percentage of their future sales. The advantage is faster access to funding than traditional bank loans. However, merchant cash advances also come with their share of pitfalls that Utah business lawyers can help clients avoid.
One issue is that merchant cash advance companies typically don’t clearly disclose relevant terms and conditions of agreements. Vague contract language can mask extremely high equivalent annual percentage rates exceeding 100% or more. Failure to repay advances as agreed can trigger harsh default terms and steep penalties.
Additionally, some merchant cash advance companies engage in unscrupulous tactics such as accessing business bank accounts without proper authorization. And others may use strong-arm tactics to collect payments by threatening to contact vendors, employees, or customers about debts.
Retaining legal counsel experienced with merchant cash advance agreements can help Utah business owners better understand contract implications. Lawyers can also negotiate more favorable terms that limit business liability in the case of defaults. And they can compel merchant cash advance companies to comply with regulations if attempting to collect payments unlawfully.
Key Utah Laws Governing Business Debt Relief
Navigating the various federal and state laws related to business debt relief is no easy feat for company owners without legal backgrounds. Utah business debt settlement and merchant cash advance lawyers stay up to date on relevant regulations and can distill down how they may impact specific situations.
Fair Debt Collection Practices Act
The federal Fair Debt Collection Practices Act (FDCPA) regulates the practices of third-party debt collectors. It aims to eliminate harassing, deceptive, and unfair tactics when attempting to collect debts. However, the FDCPA generally applies only to consumer debts rather than business debts. Retaining counsel familiar with these nuances is key.
Telephone Consumer Protection Act
The federal Telephone Consumer Protection Act (TCPA) restricts using automated dialing systems and prerecorded messages when contacting consumers by phone. It also covers text messages in many cases. As with the FDCPA, the TCPA focuses squarely on consumer protections rather than business debts. But lawyers may still leverage its provisions when appropriate.
Utah Consumer Sales Practices Act
Utah’s Consumer Sales Practices Act (UCSPA) aims to protect consumers from deceptive business practices. However, its broad definition of unlawful conduct provides tools that business lawyers can employ in certain debt settlement cases. Arguments centering on misleading representations or omissions related to debt relief services are possibilities. The law also prohibits unconscionable acts, which provides additional leverage.
Working With Experienced Utah Business Debt Relief Lawyers
Trying to navigate the complex legal landscape surrounding business debt relief is extremely difficult without proper guidance. The assistance of experienced Utah business debt settlement and merchant cash advance lawyers is invaluable. They understand the intricacies of relevant laws and regulations from all angles. And they can provide counsel tailored to the unique situations of each client while negotiating optimally favorable terms.
At Delancey Street, our legal team has extensive experience assisting Utah business owners with debt relief matters. We take an empathetic approach and offer free consultations to understand each client’s specific circumstances. Contact us at 212-210-1851 to learn more about how we can help negotiate debt settlements, merchant cash advances, and other business debt relief alternatives customized to your situation.
