Philadelphia MCA Defense Lawyers Business Debt Relief
If you run a small business in Philadelphia and are struggling with debt, including merchant cash advance (MCA) debt, you may be feeling overwhelmed and not sure where to turn. At Delancey Street, we understand the complex legal issues surrounding MCA loans and other small business financing, and we’re here to help provide options for debt relief.
How We Can Help With MCA and Business Debt
Our team includes attorneys experienced with defending business owners against MCA lenders and debt collectors. We take an empathetic approach and aim to find reasonable settlements or debt restructuring plans. Rather than pursuing drawn-out litigation, we leverage our knowledge of MCA contracts and business financing regulations to negotiate fair outcomes.Some of the ways we can help Philadelphia business owners include:
- Reviewing MCA agreements to identify unlawful provisions or violations
- Asserting defenses based on lending violations or deceptive practices
- Negotiating settlements for a fraction of the outstanding balance
- Restructuring agreements into more manageable payment plans
- Helping improve cash flow to resume making payments
- Advising on bankruptcy and other last resort options if needed
If you feel trapped or intimidated by threatening MCA debt collectors, don’t go it alone. Contact our attorneys to discuss your situation in confidence. We’re here to be your ally.
Common MCA Abuses We See
Merchant cash advance loans are largely unregulated, which has led many predatory lenders to take advantage of small business owners through deceptive marketing and oppressive loan terms. Some of the most egregious practices we commonly encounter include:
- Misrepresenting MCAs as “purchases” rather than loans
- Failing to properly disclose interest rates and payment terms
- Charging exorbitant rates often exceeding 100% APR
- Requiring daily repayments regardless of cash flow
- Imposing unreasonable default interest rates
- Getting borrowers to waive meaningful legal rights and defenses
- Aggressive collections through threats and harassment
These types of MCA lending abuses violate consumer protection laws in many cases. Our attorneys can analyze the specific provisions in your agreement to identify potential violations. Even if no laws were technically broken, we utilize creative strategies to get unfair contracts amended or voided when the circumstances call for it.
MCA Defenses We Assert
When negotiating with MCA lenders, having experienced legal counsel in your corner makes a major difference. We know which defenses tend to be most persuasive and how to effectively assert them. Some of the most common MCA defenses we utilize include:
Unconscionability – If an agreement is grossly unfair or oppressive, courts can deem it unenforceable. Factors like interest rate, repayment terms, and bargaining power imbalance are considered.
Usury violations – State laws restrict allowable interest rates on loans, with violations giving borrowers various rights and lenders facing penalties.
Deceptive practices – Misrepresenting or obscuring key loan terms may violate consumer protection laws, giving borrowers the right to void contracts.
Breach of contract – If the MCA company violates provisions in the agreement, we can leverage those breaches to seek non-enforcement of the contract.
Unjust enrichment – If repayments made thus far already exceed the benefit received from the MCA loan, courts can reduce or eliminate further payments.Rather than taking a narrow legalistic view, we dig deep to understand our clients’ full situation and determine which combination of arguments offers the strongest case for relief. Through tenacious negotiation rooted in sound legal principles, we’ve been able to achieve large reductions or complete dismissals of MCA debts for numerous Philadelphia small business owners.
The Debt Settlement Process
If you decide to work with our team, here is a general overview of what you can expect from the debt relief process:
1. Consultation – We’ll have an extensive consultation to review your full financial situation, discuss options, and start formulating a customized negotiation strategy.
2. Review Agreements – You’ll provide us with copies of all relevant MCA and business financing agreements, which we’ll thoroughly analyze to identify potential violations or defenses.
3. Open Negotiations – We’ll contact the MCA lender, clearly assert your defenses, provide supporting documentation, and put forward a reasonable settlement offer.
4. Negotiate Resolution – Through back and forth dialogue, we’ll negotiate firmly yet fairly to reach an agreement reducing or releasing you from the debt obligation.
5. Finalize Settlement – We’ll ensure all details are formalized properly in a written settlement agreement and accompanying court stipulation if relevant.
6. Dismiss Collections – The MCA lender will terminate all collection efforts against you and your business.Throughout the process we’ll provide clear status updates and guidance. While each case has its unique aspects, this framework gives you an idea of what to expect when working with us to settle MCA debts.
Why Work With Our MCA Defense Team
Dealing with aggressive MCA debt collectors is stressful enough without having to master complex legal strategies on your own. By engaging our specialized legal team, you get the top-notch expertise needed to go toe-to-toe with experienced lenders, along with the empathetic guidance required during such a trying circumstance.We’ve successfully resolved hundreds of MCA cases through our balanced approach of pursuing good faith negotiations while ready to litigate if reasonable resolutions can’t be reached. Our track record of results provides peace of mind that we can likely negotiate a satisfactory outcome in your situation as well.Additionally, working with our lawyers often proves more affordable than hiring trial attorneys at large firms who prefer lengthy court battles. We believe the best solutions come through open and constructive dialogue, saving time, money, and anxiety compared to hostile litigation.To get started and finally see the light at the end of the tunnel, give our office a call for a free consultation. We’re here to help get your business back on solid financial footing.
About Delancey Street’s Business Debt Relief Services
Our experienced team of attorneys, financial specialists, and support staff has been providing effective debt relief and restructuring assistance to Philadelphia small business owners for over 10 years. We understand the complex realties such entrepreneurs face and have compassion for the stress financial troubles create.
Legal Services
- Defense against abusive MCA / merchant cash advance lenders
- Negotiating settlements with creditors and debt collectors
- Asserting claims against predatory or deceptive financers
- Navigating bankruptcy when needed
Debt Relief
- Settling business debts for less than owed
- Consolidating multiple debts into one manageable payment
- Restructuring repayment plans aligned with cash flow
- Helping resume timely debt servicing
Financial Guidance
- Providing sound cash flow management advice
- Creating budgets and projections
- Identifying expenses able to be reduced
- Assisting with access to working capital
We realize every business faces unique challenges. Our flexible engagement options allow us to tailor solutions to address each client’s specific debt situation across the full range of legal, negotiation, and financial considerations in play.While we take pride in our track record of success, what we cherish most is the strong relationships built with clients over the years. We view you as more than just a case or file. Your business is an extension of your dreams, which we want to see thrive again.
Common Questions Philadelphia Business Owners Have
Deciding how to address overwhelming business debt brings up many questions and concerns. Here we answer some of the issues that frequently arise:
Can my assets be seized if I default on an MCA loan? For traditional bank loans secured by collateral, defaulting can lead to asset seizure. However, MCA loans are technically unsecured, with recourse limited to future sales and credit card receipts. Lenders may wrongly threaten asset seizures to intimidate borrowers, relying on lack of legal knowledge.
What is the success rate for negotiating MCA debt relief? Through diligent assertion of defenses and good faith negotiation, we have over an 80% success rate obtaining large settlements or full dismissals of MCA debt for our clients. Those choosing litigation over settlement tend to face longer, costlier battles for relief.
Can I be sued personally for my company’s debts? Limited liability protections generally shield business owners from personal liability. However, personal guarantees often required on financing agreements can override those protections. Guarantors can be sued for payment shortfalls, making legal defense important.
Are credit card receipts fair game in collections? Yes, MCA contracts often collateralize future credit card receipts, with lenders able to seize those funds directly through their processor account control rights. We work to restrict what percentages lenders can take when negotiating settlements.
If I lose in court, do I have to pay the lender’s legal fees? MCA agreements usually contain “fee-shifting” provisions stating that borrowers must pay all costs if unsuccessful defending legal claims over alleged defaults. This lopsided arrangement intimidates many owners. Our legal experience allows us to fight such imbalanced contracts.
Can debts be discharged through bankruptcy? It depends. Non-bank commercial debts like MCA loans can potentially be discharged in Chapter 7 liquidation bankruptcy, with permanent injunctions against collections. However, rules vary widely based on state laws and specific judges assigned, making legal guidance essential.Please call our office if you have any other questions. Our team is always happy to provide straight answers and advice regarding your business debt issues.
In Closing – You Have Options
We realize the idea of negotiating with experienced MCA lenders can feel intimidating. Many owners suffer silently for years before finally seeking help. Our message is – don’t wait! The sooner you consult with our legal team, the more tools we have to get your situation resolved favorably.Through compassionate guidance born from real-world small business finance experience, we can help you gain clarity on the best path forward. Whether negotiating, defending in court, restructuring agreements, or even pursuing bankruptcy protection – take comfort knowing there are always options.You need an ally now more than ever. Allow us to be that ally, giving you hope and empowering you to fight for the fair outcome you deserve. This situation does not need to define you. Let our track record of overcoming similar adversity define the possibilities instead.We offer free consultations, so there’s no risk to learn more and get pointed in the right direction. This first step is often the hardest, but also the most liberating. We’re here to catch you, and carry you towards the relief you seek. Reach out anytime – we’re eager to help!
