HOW TO FIND THE RIGHT ATTORNEY FOR MERCHANT CASH ADVANCE DEFAULT
WE UNDERSTAND. WE HAVE EXPERIENCE. WE CAN HELP YOU.
Merchant cash advance defaults ARE complicated, stressful, and overwhelming. If you’re behind on your merchant cash advance payments, you could face lawsuits, a confession of judgement (COJ), or worse—lenders might even try to TAKE YOUR WAGES. That’s why finding the right attorney is so crucial. AS SEEN ON MAJOR MEDIA OUTLETS, DELANCEY STREET is a top tier business debt relief company – we are one of the best. We want you to feel informed and protected throughout the process. Below is a simple guide to understanding the penalties and laws around merchant cash advance defaults.
WHAT’S THE FIRST STEP?
- Identify the Problem: Are you behind on your MCA payments? Have you received notices of default or threats of legal action?
- Understand What’s at Stake: Default fees, lawsuits, attempts to TAKE YOUR WAGES, and possibly a COJ against you. This is no light matter.
- Check Government Resources:
- Federal Trade Commission (FTC) for info on unfair or deceptive practices
- Consumer Financial Protection Bureau (CFPB) for insights on creditors’ actions
- SBA.gov for small business guidelines
- Find Professional Help: An experienced attorney can explain potential consequences, defense options, and how best to protect your cash flow.
BE AWARE OF PENALTIES AND POTENTIAL LAWSUITS Merchant cash advance providers have aggressive collection strategies. Some penalties for MCA’s you could face include:
- Late payment fees that raise your total debt
- Confession of Judgement (COJ) clauses, allowing a lender to get a judgment without a court case
- UCC liens on your business assets (see Uniform Commercial Code on Cornell Law School’s website)
- Personal guarantees that could lead lenders to try to seize personal property, or TAKE YOUR WAGES
REGARDLESS OF THE SITUATION… REGARDLESS OF THE STAGE… REGARDLESS OF THE SEVERITY… The right business debt relief company can help you handle these potential penalties.
LAWS THAT COULD IMPACT YOUR CASE
- State Usury Laws: Some states regulate interest rates and fees, which can impact your MCA default. If an MCA’s rate is too high, it might be challenged as usurious.
- Federal Laws on Debt Collection: Under the Fair Debt Collection Practices Act (FDCPA), certain harassment tactics are illegal. While MCAs often target businesses (not always covered by FDCPA), an attorney can analyze possible violations.
- Contract Law and the UCC: Default provisions, personal guarantees, and remedies can be scrutinized under state contract laws and the Uniform Commercial Code.
- Tax Considerations: In some negotiations or settlements, you could face tax implications. (See IRS.gov for more on debt forgiveness rules.)
FINDING AN ATTORNEY WHO CAN DEFEND YOU
- Check Their Experience: Look for attorneys who’ve handled merchant cash advance cases. At DELANCEY STREET, our sister-law firm has immense experience defending business owners with MCA’s, SBA loans, and other types of business deb t.
- Ask About Their Defense Strategy:
- Will they negotiate a reduction in your debt or just extend the term?
- Can they challenge the legality of certain fees or terms and protect you?
- Do they fight COJs and aggressively protect your assets and make sure your personal assets aren’t touched?
- Verify Credibility: Have they been quoted in major media outlets? Do they have real testimonials from former clients?
- Ask for a Clear Plan: Make sure they offer a step-by-step strategy—no vague promises. WE UNDERSTAND your struggles, and we’re ready to provide a road map.
OUR DEFENSE STRATEGIES
- Immediate Negotiation with Creditors: We reach out immediately, aiming to reduce penalties, stretch out your payment schedule, and lower your monthly burden.
- Review of Lender Agreements: We dissect your contracts, searching for unlawful or predatory clauses. If we find any, we use it to your advantage.
- Potential Lawsuit Defense: If a lender sues you (or uses a COJ), we respond swiftly, challenging every aspect of the claim.
- Protecting Personal Assets: We strategize ways to protect your home, personal accounts, or anything a lender might try to seize. We know lenders WANT you to pay, but we also know the law protects you from unfair practices.
DEDICATED. EXPERIENCED.
When you look for an attorney, you want someone who can make sense of your financial challenges. You want a team that knows how to protect your cash flow, keep you operational, and reduce your overall debt.
WHAT SHOULD YOU DO IF YOU’VE BEEN SERVED WITH A COJ?
- Act Quickly: Time is critical. A COJ can become a judgment almost overnight.
- Contact a Qualified Lawyer: Don’t wait. Once a judgment is entered, lenders can try to TAKE YOUR WAGES or freeze your bank accounts.
- Gather All Documents: Provide your lawyer with the merchant cash advance agreement, statements, and any communications with the lender.
- Review Options: Can you settle? Fight it? Restructure? An experienced attorney can help you find the best path.
REMEMBER, WE CAN HELP YOU DELANCEY STREET is here.
WE UNDERSTAND how stressful merchant cash advance defaults can be.
WE HAVE EXPERIENCE in negotiation and litigation.