Albuquerque Business Debt Settlement and Merchant Cash Advance Lawyers
If you run a small business in Albuquerque and are struggling with debt, you may be wondering if there are lawyers who can help you settle your debts or deal with merchant cash advances. Well, the good news is there are options available!At Delancey Street, we have attorneys on staff who specialize in helping business owners get out of debt. We know it can be really stressful trying to juggle all your financial obligations while also running your company. That’s why we‘re here to help lighten the load.
How Can a Lawyer Help With Business Debt Settlement?
When it comes to business debt, having a lawyer on your side can make all the difference. They can help in a few key ways:
- Negotiating with creditors – A lawyer can handle those tough conversations with creditors and try to get them to agree to settle your debts for less than what you owe. This takes some of the pressure off you.
- Understanding your legal rights and defenses – There may be certain legal protections or defenses available to your business that could help in getting debts reduced or dismissed. A lawyer can advise you on your options.
- Dealing with lawsuits – If any creditors sue you over unpaid debts, a lawyer can represent you in court and try to get the case resolved favorably.
- Improving cash flow – By settling debts, lawyers can help free up cash flow so you can get your business back on steadier financial ground.
So if you’re looking for help with business debt settlement in Albuquerque, give our legal team a call at 212-210-1851. We offer free consultations to review your situation.
What About Merchant Cash Advance Relief?
Merchant cash advances can sink businesses if the payments get too high. But lawyers may be able to help in a few ways:
- Reviewing the MCA agreement for any provisions that may be unlawful or unenforceable. There could be ways to fight back against unfair terms.
- Assistance modifying payment schedules if the current schedule is unsustainable. Lawyers can try to negotiate this.
- Defending against MCA lawsuits over non-payment. If sued, a lawyer can put up defenses to try to get the case dismissed or damages reduced.
- Advice on bankruptcy should it come to that. While bankruptcy is a last resort, a lawyer could advise if and how it may apply to the MCA debt.
So if merchant cash advances are dragging your Albuquerque business down, let our legal team review your agreement and situation to map out some solutions.
Why Work With Delancey Street?
Here’s what sets Delancey Street apart when it comes to business debt and financing issues:
Experienced Legal Team – Our lawyers know business debt and financing agreements inside out. Many have helped dozens of business clients successfully settle debts and negotiate better financing terms. Their experience is invaluable.
Client-Focused Approach ̶ We take time to understand each client’s unique situation and goals. Our advice and strategy is tailored to get our clients the best possible outcome. We don’t take a one-size-fits-all approach.
Reasonable Flat-Fee Services – Unlike most law firms that bill hourly, our lawyers work on an affordable flat-fee model so you know what you’re getting into upfront. We try to make top legal help accessible.
High Success Rate – Over the years, our legal team has successfully resolved a wide array of business debt disputes, lawsuits, settlements and financing deals. We know how to get results.If you have any business debt or financing issues, we encourage you to reach out for a free consultation. Let our lawyers review your situation and put their expertise to work for you.Now let’s dive into some specifics on business debt settlement and defenses in Albuquerque…
Business Debt Settlement Basics
Debt settlement involves working out deals with creditors to pay off debts for less than the full amount owed. Often creditors agree to settlements when they see the business doesn’t have the ability to repay in full.But business debt settlements can be tricky. Having a lawyer helps negotiate better deals and make sure settlement agreements are structured properly and legally enforceable.Our lawyers are well-versed in New Mexico laws and rules around debt settlement. We know what types of settlement payments and terms often pass legal muster with courts if ever challenged.
Key Defenses Against Business Debt Lawsuits
If Albuquerque business creditors sue over unpaid debts, there are a few legal defenses to be aware of:
Statute of Limitations – In New Mexico there is a 4-year statute of limitations on written contracts. This means creditors have 4 years from the debt default date to sue. After 4 years debts may be time-barred.
Improper Service – For a court to have jurisdiction over your business, you need to be properly served the lawsuit papers. If service was improper or defective in some way, our lawyers can challenge it.
Unregistered Out-of-State Plaintiff – If the suing creditor is based out-of-state but hasn’t registered properly to do business in New Mexico, we may be able to get the case tossed.
Excessive Interest or Fees – Under state laws, creditors cannot charge excessive interest rates or fees. If they do, those charges could potentially be invalidated by a court.The key is identifying which defenses apply to your situation. Our legal team can analyze the debts in question and build a targeted defense strategy leveraging New Mexico business debt laws.
Options for Negotiating Business Debt Settlements
When it comes to negotiating debt settlements, much depends on the types of debt involved. Different rules can apply.
Settling Secured Debts – Secured debts usually have collateral pledged, like equipment loans or commercial mortgages. Settlement options often depend on whether you want to keep the collateral or not.
Unsecured Debt Settlements – With unsecured debts like credit cards or lines of credit, settlements often come down to negotiating lump-sum discounts to close accounts. Much depends on the creditor and their policies.
Tax Debt Relief – For IRS or state tax debts, special programs like Offer-in-Compromise allow qualifying businesses to settle for less based on inability to repay. Our tax attorneys are familiar with these programs.
Judgments – If a creditor has an existing court judgment against your business, this complicates debt settlement. But even judgments can sometimes be negotiated down or managed.The key is to look at each debt and creditor separately. Our Albuquerque business debt attorneys will dig into the specifics to surface your best settlement options. Don’t hesitate to set up a free consultation to start exploring those options.
Beware Merchant Cash Advance Pitfalls
While merchant cash advances can provide quick financing, they come with plenty of pitfalls too. The key is going in with eyes wide open on the terms and your responsibilities.Some things to watch out for with merchant cash advances:
- Double-Digit Interest Rates – MCAs often charge interest rates into the double or even triple digits when calculated as APRs. That stacks the deck against you.
- Daily Repayment Terms – MCAs take a cut of your daily credit card sales, which can drain your working capital quickly. It’s not like a fixed loan payment.
- Personal Guarantees – Often the MCA will make owners personally guarantee the advances. This puts your personal assets at risk if things go south.
- Aggressive Collections – Some MCA providers are quick to slap merchants with lawsuits if payments fall behind or violations occur. You can get mired in legal issues fast.
So while MCAs may provide fast financing, they can wreak havoc on cash flow if used irresponsibly or structured poorly. Our legal team can help improve the odds by reviewing any MCA agreement first and negotiating better terms where possible. We can also defend any lawsuits should they arise down the road.
Options If Merchant Cash Advances Become Unaffordable
Sometimes after the fact businesses realize they bit off more than they can chew with a merchant cash advance. The payments become too much to handle.If this happens, some options to discuss with a lawyer include:
- Renegotiating the Agreement – There may be ways to get the MCA provider to lower the payment percentage taken from daily sales, or alter the payment schedule. Our lawyers can pursue this.
- Unconscionability Arguments – If the agreement seems grossly unfair or abusive, courts can sometimes void contracts deemed “unconscionable.” This is a high bar but we’ve succeeded before in getting unfair MCA deals invalidated.
- Usury Defenses – New Mexico caps interest rates on loans, with exceptions for some commercial financing. If the MCA skirts lending laws, a usury defense may apply to lower interest owed.
- Debt Settlement – Like with any debt, you may be able to negotiate an MCA payoff for less than you owe. The provider gets something rather than risking getting nothing if you go under or bankrupt.
The key is acting quickly if MCA payments spiral out of control. Call us at 212-210-1851 to go over your options. The sooner we can intervene, the more leverage we tend to have. Don’t wait until you are drowning in legal claims.
Could Bankruptcy Help in a Cash Crunch?
While bankruptcy remains an absolute last resort, it is something for struggling Albuquerque small business owners to be aware of. In some cases bankruptcy may provide an escape hatch when debts become severely unmanageable.Some key things to understand:
- Chapter 7 vs Chapter 11 – Chapter 7 bankruptcy liquidates while Chapter 11 reorganizes. Chapter 11 is more complex but sometimes worthwhile for saving a business.
- Wiping Out Debt – In bankruptcy you can eliminate or greatly reduce certain business debts without paying them back. This can free up cash flow.
- Halting Lawsuits and Collections – Upon filing bankruptcy, an “automatic stay” kicks in legally blocking creditors and lawsuits in their tracks. This buys you time.
- Protecting Assets – Chapter 11 bankruptcy in particular can block creditors from seizing assets critical to business operations. This helps you keep doors open.
While bankruptcy spells failure for some entrepreneurs, it can also represent a chance at a fresh start if used strategically. Our legal team can map out whether it makes business sense in your situation.
Put Our Albuquerque Business Lawyers to Work for You!
If you run a small business in Albuquerque that’s facing mounting debts or cash flow challenges, let our team of business attorneys help. Set up a free consultation today and we’ll review your situation to map out a game plan.With experienced legal guidance from Delancey Street, you don’t have to tackle business debt or financing disputes on your own. We know how to negotiate, litigate, and find creative solutions that work.Don’t wait until problems spiral out of control. Call 212-210-1851 or contact us online to get started. Our lawyers are ready to help your Albuquerque small business resolve financial issues and get back on track. With an affordable flat-fee approach, we keep quality legal help accessible no matter your budget.
