New lenders are entering the market, offering potential refinancing options for merchant cash advances and business loans with lower interest rates and more favorable terms. Eligibility typically requires that you are no more than three payments behind on your current agreements. If you’re interested in exploring these opportunities, we can connect you with lenders who may be able to assist.

Before an imminent default or following a default on an MCA debt, lenders may be willing to negotiate a settlement for a reduced amount, prioritizing swift repayment.

Potential settlement options include:

• Temporarily reduced monthly payments
• A lump sum payoff
• A structured repayment plan

Our team will assist in preparing a detailed hardship package that effectively demonstrates why your proposed settlement is both a viable solution for the lender and a fair resolution. We will handle the negotiation process on your behalf, ensuring that all terms are carefully reviewed by our attorneys to protect your best interests.

Litigation is an important factor to evaluate when addressing a merchant cash advance (MCA) funding agreement.

• Proactive Litigation: In certain situations, taking legal action against the MCA funder may be necessary to assert your contractual rights or challenge deceptive practices that may have influenced the agreement.
• Default Litigation: If a default occurs, the MCA funder may pursue legal action to secure a judgment and collect the full claimed balance, including excessive default fees. However, you may have legal defenses or counterclaims that could reduce their ability to recover the full amount.

Our law firm provides legal representation in most jurisdictions where MCA funders initiate lawsuits, ensuring your rights are protected throughout the legal process.

Your eligibility for bankruptcy will depend on your income and assets, with Chapter 7 and Chapter 13 being the most common options. Many individuals prefer Chapter 7, as it allows for the discharge of certain debts without ongoing creditor involvement.

Important Consideration: Filing for personal bankruptcy under Chapter 7 eliminates your personal liability to creditors but does not discharge any outstanding debts owed by your business. Those financial obligations will remain in place unless separately addressed.

A Chapter 11 bankruptcy provides your company with the opportunity to restructure its debts while incorporating certain Chapter 7 provisions. This process can help reduce financial obligations for both you and your business, allowing for a more manageable path toward financial recovery.