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Laredo MCA Defense Lawyers Business Debt Relief

February 24, 20248 min read

IF YOU’RE LOOKING FOR A BUSINESS DEBT SETTLEMENT COMPANY, VISIT DELANCEY STREET. CLICK HERE NOW.

 

 

Laredo MCA Defense Lawyers Can Help With Business Debt Relief

If you run a small business in Laredo and are struggling with debt, there are options available to help provide relief. Business debt relief programs can help restructure or settle your business debts so your company can regain financial stability.

How Can a Laredo MCA Defense Lawyer Help?

Working with an experienced Laredo MCA defense lawyer provides a number of benefits for a business owner looking for debt relief:

  • They have extensive knowledge of debt relief laws and options specific to Texas businesses
  • They can negotiate with creditors on your behalf to try to settle debts or improve repayment terms
  • They can defend against lawsuits if creditors take legal action over unpaid debts
  • They can advise if declaring bankruptcy makes sense for your business
See also  Los Angeles Merchant Cash Advance Lawyers and Business Debt Relief

Retaining legal counsel shows creditors you take your debts seriously and are making an effort to address outstanding balances. This can motivate creditors to offer better settlement terms.

Common Types of Business Debt Needing Relief

There are a variety of reasons a Laredo small business may accumulate excessive debts, including:

  • Outstanding invoices and accounts payable
  • Past due taxes
  • Defaulted business loans or lines of credit
  • Merchant cash advance (MCA) repayment obligations
  • Commercial lease or mortgage arrears

Options for Settling Business Debts

If your Laredo company cannot realistically pay back all its debts in full, working with an attorney to negotiate settlements is often the most practical approach. This provides relief by allowing you to pay back less than you owe. Common options include:

Debt Consolidation

With debt consolidation, multiple debts get combined into a single new loan with one monthly payment. This can make repayment easier to manage if negotiated well.

Debt Settlement

Your attorney negotiates directly with creditors to settle accounts for less than the full balance. Creditors often accept discounted lump sums to recoup at least part of what they’re owed.

Chapter 7 & Chapter 11 Bankruptcy

Declaring Chapter 7 or Chapter 11 bankruptcy provides legal protection while debts get reorganized or eliminated. Chapter 7 liquidates assets to pay creditors, while Chapter 11 allows restructuring debt payments. Bankruptcy severely impacts credit scores.

What is a Merchant Cash Advance (MCA)?

A merchant cash advance (MCA) provides a lump sum advance on future credit card sales. The business then repays it at a fixed daily rate as a percentage of daily credit card receipts.MCAs appeal to small businesses because:

  • Fast approval decisions
  • Funding often within a few days of approval
  • No collateral required
  • All credit scores considered
  • Daily repayment from credit card sales
See also  10 Questions to Ask Business Debt Settlement Companies

However, the costs, terms and consequences of failing to repay an MCA can be problematic:

  • Expensive – equivalent to 60-400% APR interest
  • Daily repayment structure can be onerous
  • Personal guarantees may put owner’s assets at risk
  • Not understanding total payback amounts and timing
  • Potentially losing ability to continue accepting credit cards

Why MCAs May Require Legal Defense

Merchant cash advance companies use aggressive collection tactics that often incorporate the court system. Common legal actions include:

  • Lawsuits over alleged default on MCA agreements
  • Seeking injunctions to garnish business bank accounts
  • Going after personal assets protected by owners’ personal guarantees
  • Getting courts to temporarily suspend credit card processing privileges

Defending against such actions requires an attorney experienced with MCA collections matters. They can contest questionable default allegations and improper repayment attempts. This can help avoid outcomes that could force your Laredo business to close down.

How Can Delancey Street Help?

Delancey Street has extensive experience helping business owners seek relief from overwhelming debts, including MCA obligations.While not a law firm, Delancey Street partners with qualified attorneys to help negotiate settlements and defend clients when legal action arises. This combination of debt relief and legal expertise provides a comprehensive approach.With Delancey Street you can expect:

  • Free consultation to review your situation
  • Customized programs to fit your business needs
  • Lower settlements with improved repayment terms
  • Legal help contesting unfair legal actions
  • Avoiding having to close your business if possible

Delancey Street also takes an empathetic approach and understands the stress business debt can create. Contact them for a free consultation and see if their services make sense for your Laredo company.Reach Delancey Street at:Phone: 212-210-1851Website: https://www.delanceystreet.com

See also  Alaska MCA Defense Lawyers Business Debt Relief

What Laws & Legal Defenses Apply to MCAs?

If your Laredo business gets sued over alleged failure to repay a merchant cash advance, certain laws and legal precedents may provide defenses:

Usury Laws

  • Texas usury laws cap maximum allowable interest rates based on type of debtor
  • MCA high rates may violate state lending or credit regulations
  • Proving usury can invalidate entire MCA agreement

Unconscionability

  • Unconscionable contracts so extremely unfair they should not be enforceable
  • MCA terms like rates, personal guarantees and waiving rights may qualify

Breach of Contract Disputes

  • Contesting alleged breaches that triggered default and collections
  • Arguing missing payments don’t justify extreme collection actions
  • Noting efforts to work in good faith to address owed balances

What Are the Pros & Cons of Declaring Business Bankruptcy?

While declaring Chapter 7 or Chapter 11 bankruptcy provides immediate relief from debts and legal actions, it has long term consequences:Potential Pros

  • Stops collections lawsuits and enforcement
  • Assets protected from seizure during proceedings
  • Debts discharged entirely (Chapter 7)
  • Legally binding payment plans (Chapter 11)

Potential Cons

  • Major damage to personal credit scores
  • Lose control over business to bankruptcy trustee
  • Forfeit assets used to pay creditors (Chapter 7)
  • Onerous legal administrative expenses
  • MCA debts rarely fully discharged

Every situation differs. A qualified attorney can best advise if bankruptcy makes sense for your particular Laredo small business.

Key Takeaways

  • Numerous options exist for legally settling business debts
  • Skilled Laredo MCA defense lawyers can negotiate and contest unfavorable MCA terms
  • Services combining debt relief expertise plus legal support are invaluable
  • Usury laws, unconscionability and contract disputes offer defenses
  • Seek help quickly – don’t wait until facing court orders or asset seizure

Delancey Street has the real-world experience, empathy and partnerships to help Laredo business owners regain financial stability. Through understanding your unique situation they can customize practical solutions.

 

 

 

IF YOU’RE LOOKING FOR A BUSINESS DEBT SETTLEMENT COMPANY, VISIT DELANCEY STREET. CLICK HERE NOW.

 

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