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Washington Business Debt Settlement Lawyers and Merchant Cash Advance Lawyers

Running a small business is tough. There‘s so much to manage – employees, customers, suppliers. And then there‘s the financial side of things. As a business owner in Washington, you may have found yourself struggling with business debt at some point. Whether it’s loans, lines of credit, or merchant cash advances, debt can pile up quickly.What do you do when you realize you’ve taken on more debt than you can reasonably pay back? That’s where working with a business debt settlement lawyer can help. Let’s take a closer look at business debt settlement and how a lawyer can assist you.

How Business Debt Settlement Works

Debt settlement is when you work with creditors to pay less than the full amount owed. It’s kind of like negotiating – you put an offer on the table and hopefully reach an agreement. With business debt, a lawyer handles discussions with lenders on your behalf.The goal is to convince creditors to accept a lump sum payment that‘s less than what‘s owed. This is often 30-50% of the total debt. Creditors agree because they‘d rather have something instead of nothing if you end up defaulting altogether.Business debt settlement can work for various types of obligations – loans, lines of credit, judgments, past due taxes, and even merchant cash advances. With the help of an attorney, many types of business debt can potentially be reduced or resolved entirely.

Why Hire a Business Debt Settlement Lawyer?

Attempting to negotiate business debt on your own is usually not advised. There are important laws and regulations surrounding debt settlement that you need to carefully follow. An experienced business debt lawyer knows the ins and outs of these rules.They also have advanced negotiation skills specifically for dealing with creditors. Negotiating is an art form – one that lawyers specialize in. They know what tactics to use, what terms are reasonable, and when to push back. With legal expertise on your side, you stand the best chance of reaching a favorable settlement.In addition, lawyers provide a buffer between you and creditors. Collectors must communicate directly with your attorney rather than harassing you. This takes a lot of stress off your plate so you can focus on operating your Washington business.

What Laws Apply to Business Debt Settlement?

There are a few important laws relating to business debt settlement agreements in Washington:

Fair Debt Collection Practices Act

This federal law limits how collectors can seek repayment of past due business debts. For example, collectors can‘t use threats or harassment. There are also rules around communication – like calling at reasonable hours. Violating the FDCPA can lead to your debt being wiped away entirely.

Washington Collection Agency Act

Washington state has its own statute – the Collection Agency Act – regulating debt collectors. There are licensing requirements, bonding rules, prohibited practices, and provisions around contacting third parties about debts. Collectors that violate the CAA may have their license revoked or face civil penalties.

Statute of Limitations

This isn’t technically a “law” but it‘s an important concept. The statute of limitations sets legal deadlines for taking action to collect debts. In Washington, it’s usually around 4 to 6 years for written contracts. If collectors wait too long, you can use the statute of limitations as a defense against certain lawsuits over old business debts.

Options for Settling Merchant Cash Advance Debt

A unique type of financing many Washington companies use is merchant cash advances. How do you go about settling this kind of obligation?With an MCA, a lender provides a lump sum in exchange for a percentage of future credit card sales. There‘s often no fixed repayment schedule – the lender takes daily payments until the full amount is repaid (plus very high interest rates).Settling merchant cash advance debt usually involves:

• Stopping the daily payments – This may require switching merchant processors or bank accounts so the MCA lender no longer has access.
• Negotiating a lump sum settlement – Based on sales history, determine a reasonable payoff amount.
• Structuring installment payments – If unable to pay a lump sum, negotiate a fixed monthly payment plan.

Halting payments violates the original MCA agreement so expect some legal threats. This is why assistance from a lawyer is so valuable. They handle all correspondence and negotiations around settling merchant cash advance debt.

What Defenses Work Against Business Debt Lawsuits?

Despite your best efforts, a creditor may still file a lawsuit over an unpaid business debt. Don’t panic! There are defenses a lawyer can assert to fight the lawsuit, like:

Breach of Contract

If the creditor didn‘t fulfill promises they made, argue they breached the contract. This may release you from repayment obligations.

Unconscionability

If the interest rates or fees are excessively high, courts can rule the contract “unconscionable” and unenforceable.

Statute of Limitations

If too much time has passed since the debt became due, the court case may be thrown out based on the statute of limitations.

Violations of Debt Collection Laws

As discussed, if collectors break state or federal consumer protection laws, the entire debt can be invalidated.

Finding the Right Business Debt Settlement Attorney

If you decide to move forward with settling your Washington business debts, take time to find the right attorney. Look for lawyers with specific experience negotiating business debts – not just general civil litigation.Ask about their success rate settling similar debts. Also understand what strategies they use to achieve settlements. Make sure you understand fee structures as well. Some business debt lawyers work on contingency, taking a percentage of savings from settlements. Others charge hourly or fixed rates.Getting overwhelmed with excessive business debt is stressful. But professional help is available. Connecting with an experienced Washington business debt settlement lawyer can put you on the path to financial recovery. Through strategic negotiation and legal expertise, many find settlements that significantly reduce what they owe – or even wipe debts away entirely. Don‘t hesitate to explore your options. Relief may be closer than you think.