New lenders are emerging that may refinance your merchant cash advance or business loans, potentially offering lower interest rates and more favorable terms. In most cases, to be eligible, you must not be more than three payments behind on your existing agreements. If you would like to explore these options further, we can introduce you to lenders who may be able to provide assistance.

Before an eminent default or after a default on the MCA debt, the lender may be open to settling for a reduced amount. Their priority will be to receive payment as quickly as possible.

Settlement options include:

• Temporarily reduced monthly payments
• A lump sum payment
• A structured payment plan

Our team will assist in preparing a comprehensive hardship package that clearly demonstrates why your offer is both the best option for the lender and a reasonable resolution. We will manage the negotiation process on your behalf, and our attorneys will thoroughly review all agreements to ensure your interests are fully protected.

Litigation is a significant consideration when resolving a merchant cash advance funding agreement.

Proactive Litigation: In some cases, it may be necessary to initiate legal action against the MCA funder to enforce your contractual rights or to address any deceptive practices that may have been used to entice you into the agreement.

Default Litigation: If a default occurs, there is a risk that the MCA funder will pursue legal action to obtain a judgment and collect all claimed outstanding funds, including any substantial default fees they assert are owed. However, you may have valid claims that could potentially limit the amount they are entitled to collect.

Our law firm has the capability to provide legal representation in most states where MCA funders file lawsuits.

Depending on your income and assets, you may be eligible to file for bankruptcy under either Chapter 7 or Chapter 13. Many individuals prefer Chapter 7 because it provides the opportunity to discharge certain debts without requiring ongoing creditor involvement.

Important Consideration: It is crucial to understand that filing for personal bankruptcy under Chapter 7 will only eliminate your personal liability to the creditor. This process does not absolve your company of any outstanding debts; those obligations will remain in place.

A Chapter 11 Bankruptcy allows your company to file a bankruptcy and in that filing allows for Chapter 7 like provisions so both you and your company do not owe as much on the debt.

Failing to take action may result in a judgment being entered against both you and your company in the state the lawsuit was filed in. This judgment could then be domesticated in your state of residence or operation. Once the judgment is in place, creditors have the ability to pursue your personal and business bank accounts, as well as potentially seek to take other assets not protected by your state law.

We are happy to analyze your situation and propose an asset and business protection plan.