Are you struggling with a merchant cash advance (MCA) in Alabama, and worried you might face legal trouble? We can help you understand the situation and figure out the right solution. Regardless of the challenges you’re facing, our team at DelanceyStreet.com, a top tier business debt relief company based out of NYC, focuses on providing business owners with the guidance they need. We handle MCA negotiations, potential lawsuits, and more.

Who We Are
We’re DelanceyStreet.com, and we help clients nationwide when they have trouble with their MCA providers. An MCA that was given to your business might feel like a quick fix at first, but over time, it can become a huge burden. That debt can cause cash flow issues that might put you at risk of going out of business. We want to give you a brief overview of your rights and the possible penalties you face if something goes wrong.

What is an MCA
A merchant cash advance (MCA) is an arrangement that was originally designed to give you fast capital in exchange for a percentage of your future credit card sales. This means you get a lump sum of money, and in return, the MCA provider takes daily or weekly payments out of your bank account, which can be extremely hard to manage if your cash flow is inconsistent. If you can’t keep up, the MCA provider could file a lawsuit against you, which can result in serious consequences.

Possible Crimes, Penalties, and Punishments

1. Criminal Fraud Allegations
   Sometimes, an MCA provider who was unhappy with incomplete or misleading information might claim fraud if they believe you provided false details on your application. Fraud that was proven in court may lead to criminal charges, large fines, and possible prison time. This means you could lose your business, and also face severe personal consequences.
2. Breach of Contract Lawsuits
   A provider who was not repaid might sue your company for breach of contract. This can mean you end up with judgments that allow them to garnish your business income or even your personal assets. This can make it impossible to continue operating, and it might lead to personal financial ruin if there is a personal guarantee involved.
3. Confession of Judgment (COJ) Enforcement
   If you signed a COJ that was included in the MCA contract, the MCA provider can get a judgment against you very fast. This leads to bank account freezes, property seizures, and other aggressive collection tactics without the usual court hearing. We can help you figure out if there are defenses available, but the bottom line is that a COJ can cause you to lose control of your accounts overnight.

Strategies of How We’d Defend You

1. Review of Contract Validity
   A contract that was created with misleading terms might be challenged. When a contract is invalid, the lender can’t enforce the debt in the same way. This could result in the judge throwing out certain parts of the contract. That means you may have leverage to negotiate a better deal or dismiss the case.
2. Evidence that was Illegally Obtained
   Evidence that was illegally obtained may be ruled inadmissible in court. If the lender got your information without proper authorization, a judge might exclude it, which means their case against you may weaken. If that happens, the entire lawsuit can fall apart.
3. Showing Good Faith Efforts
   A borrower who was clearly trying to repay can sometimes ask for a structured repayment plan. This might result in a smaller settlement or a renegotiation of the MCA. That means you could stay afloat, and avoid going out of business.
4. Negotiation with MCA Providers
   We often start by talking to the MCA provider. We show them your real financial situation, which might lead them to accept a partial payment or a longer plan. That means you can breathe easier and keep your company running.

Practical Consequences of Legal Defense
When we defend you in an MCA case, there are important consequences to understand. If the court dismisses the lawsuit, you keep your assets. That means you can stay in control of your bank accounts and continue business operations. If a judge reduces your debt, your monthly payment might drop, which can help you rebuild your company faster. If the lawsuit is fully dismissed, your credit score could stop declining. That means you can have more opportunities for financing in the future.

Important Legal References
If you want official information about Alabama state laws, visit the Alabama Government Website or check the Alabama Attorney General’s Office for guidance on business regulations. You can also look at the Alabama Judicial System site for details on how civil lawsuits work.

FAQs: Frequently Asked Questions

1. Could the MCA provider garnish my wages?
   Yes. A judge who was convinced you breached your contract can issue a garnishment order, which means the provider can take money directly from your bank account. If that happens, it might make daily operations impossible.

2. What happens if I ignore a lawsuit?
   If you ignore a lawsuit that was served on you, the court may issue a default judgment. That means the MCA provider can collect without your input. You could lose assets without a fair chance to defend yourself.

3. Is it possible to avoid jail time for MCA issues?
   In most business debt situations, jail time is unlikely, but fraud or criminal activity that was proven can change that. If there is a fraud claim, you could face criminal penalties and even incarceration.

How to Get Help Right Now
We can help you understand your options and defend you if a lawsuit happens. If you’re in Alabama, and you have concerns about an MCA, contact DelanceyStreet.com right away. Regardless of your debt load, it’s important to act quickly so you can protect your assets.