Delaware Merchant Cash Advance Attorney
Hey there! If you’re a small business owner in Delaware who took out a merchant cash advance (MCA) and is now struggling with payments, this article is for you. I want to have a real talk about your options and how hiring a Delaware MCA attorney could help.First off, I get it. Times are tough and cash flow can be inconsistent. An MCA probably seemed like a quick fix to get some working capital into your biz. The problem is those easy approvals and fast funds come with a big catch – sky high rates and unreasonable repayment terms. Before you know it, you owe way more than you borrowed and can’t keep up with the daily payments.I’ve seen this happen to lots of Delaware business owners. You aren’t alone. But there is hope! A good MCA attorney can review your agreement, negotiate with the provider, defend against lawsuits, and possibly even get your debt reduced or invalidated. Keep reading to learn more.
How Did I Get Here?
If this sounds familiar, you’re not alone:
-- Business slowed down due to COVID or other reasons
- Needed cash quickly to cover expenses
- Got approved for an MCA in 24 hrs with no credit check
- Seemed great at first when the money hit your account
- Didn’t fully understand the fees, rates, and repayment terms
- Started falling behind on daily payments as sales dropped
- Owe 2-3X more than you borrowed over a short period
Delaware has over 50 MCA companies operating in the state. Most are based out of state with little oversight. They can get away with crazy high rates and unreasonable repayment terms. For example, did you know it’s common for MCA rates in DE to be equivalent to 60-200% APR when calculated like a loan? Yep, crazy.Many companies also require you to pay back a percentage of your daily credit card sales. So if you have a slow month, you still owe the same giant payment. It can sink a struggling business quickly.
Why Hire a Delaware MCA Attorney?
If you answered yes to any of these questions, it’s probably time to get some legal help:
- Are MCA payments affecting your ability to cover other bills?
- Have you tried negotiating lower payments but they refuse?
- Are you worried they could sue you or place liens on your assets?
- Is the debt causing you major stress and anxiety?
- Unsure of your rights and options under DE law?
Unlike debt settlement companies, attorneys are legally required to represent YOUR best interests. They can provide services like:
- Review your MCA agreement for violations of Delaware law
- Negotiate with the provider for a settlement or payment plan
- Defend against lawsuits and aggressive collections
- Fight back against illegal MCA company practices
- Invalidate the agreement if unlawful terms are found
- Reduce the amount owed through legal arguments
- Discharge debt through bankruptcy if needed
Having an experienced lawyer on your side levels the playing field. They understand MCA tactics and can challenge shady practices.
-What Will My Delaware MCA Attorney Do?
If you decide to hire representation, here are some things your attorney may do:
1. Review Your Agreement
The first step is to carefully review your MCA contract. They will look for prohibited terms like:
- Rates/fees above DE usury limits
- Failing to register as lender with state
- Requiring unreasonable repayment amounts
- Personal guarantees or confessions of judgment
- Deceptive language like “purchase agreement”
If violations are found, that gives leverage to invalidate the agreement and get lawsuits dismissed.
2. Attempt Negotiation
Your lawyer will first try to negotiate a settlement with the MCA company. This could include:
- Lump sum payoff for less than you owe
- Reduced payoff amount as satisfaction of debt
- Lower daily payments based on current sales
- Fixed monthly payment schedule
- Threat of legal action if they won’t play ball
Having a lawyer involved shows you’re serious. Many will settle to avoid court.
-3. Defend Against Lawsuits
If negotiation fails, your attorney can defend you in court. Possible defenses include:
- Agreement violates DE lending laws
- Failure to register properly in state
- Unlawful fees, rates, repayment terms
- Fraud, misrepresentation
- Unconscionable agreement terms
The goal is to invalidate the MCA contract or get the case dismissed.
4. File Bankruptcy
For those with multiple debts, bankruptcy may discharge part or all of your MCA balance. Your lawyer will review options.
-5. Advise on UCC Liens
If the provider placed a lien on your business assets, your attorney can help remove it.
Finding the Right Delaware MCA Attorney
It’s important to choose a lawyer experienced with merchant cash advances. Here are good questions to ask:
- How many years have you handled DE MCA cases?
- Are you familiar with Delaware MCA laws?
- What strategies have you used to successfully challenge providers?
- Can you provide references from past DE MCA clients?
- Will you review my agreement for violations at no cost?
Look for those who offer free consultations and case reviews. Understand their fees upfront before retaining.I hope this gave you a good overview of how a Delaware MCA attorney can help! If you’re stressed and unsure of your options, please reach out to a legal professional. Don’t wait until you’re facing lawsuits or liens. There are defenses available and an experienced lawyer can negotiate a settlement. Wishing you the very best in getting this debt monkey off your back! Let me know if you have any other questions.
Frequently Asked Questions
Here are answers to some common questions about Delaware MCA attorneys:
How much will a Delaware MCA attorney cost?
Costs vary by firm experience and services needed. Many offer free consultations. Expect to pay $2,000 – $5,000+ for agreement review, negotiation, and litigation defense. Retainers are common.
Should I use a debt settlement company instead?
Debt settlement firms seem cheaper but provide limited services. Most can’t give legal advice or defend lawsuits. You also have less assurance they act in your best interest.
What if I already have a judgment against me?
Don’t panic! An attorney may be able to get it vacated or reduced. Act quickly as options become limited after a judgment.
Can I discharge MCA debt in bankruptcy?
Possibly. Your lawyer will review if Chapter 7 or 13 bankruptcy makes sense for your situation. It can eliminate or reduce MCA debt.
How long will the legal process take?
It varies case-by-case. Simple negotiations can resolve in weeks. Lawsuits and litigation may take several months. Move fast for best results.
What are my chances of getting the MCA invalidated?
Your odds are good if prohibited terms are found. Even if not, skilled attorneys often negotiate reduced settlements with MCA companies.
What if I can’t afford an attorney?
Some firms offer payment plans or assistance programs. If money is tight, discuss options honestly with your lawyer. Don’t go it alone.
In Summary…
I know MCA debt is stressful. But Delaware attorneys can help! Their expertise levels the playing field against unregulated lenders. If you’re struggling, set up a free consultation with a lawyer experienced in MCA cases. Learn your rights and defenses. With help, you can resolve this debt and move forward. Wishing you all the best!