Should I Hire a Business Debt Settlement Lawyer? Pros and Cons
Are you feeling overwhelmed by MCA debts that were created by running your business, where you took money when you needed it? You might be wondering if hiring a business debt settlement lawyer is worth it – and how they can help you get out of the immense business debt you have. Below is a simple, high-level look at the pros and cons. We are DelanceyStreet.com – a top tier business debt relief company, based out of NYC, that helps clients nationwide. Our company is owned, and operated, by an attorney.

What is a Business Debt Settlement Lawyer?
A business debt settlement lawyer is an attorney who chooses to focus on helping you negotiate your debts, create legal defenses, and guide you through potential lawsuits. Many lenders will not be happy you’re choosing to default, and attempt to renegotiate your debt. Lawyers can also advise you on your rights, and they can represent you if creditors take legal action.

Why Hiring a Business Debt Settlement Lawyer Might Help

1. Legal Protection
   A creditor that was looking to sue can freeze your bank accounts or seize your assets. If you have a lawyer, you have a defender who understands how to respond. Many of these situations end up in court, and so you need legal counsel.

2. Negotiation Expertise
   A skilled lawyer who was experienced in dealing with creditors can seek lower repayment terms, or reduced balances. This might save you money in the long run.

3. Criminal Fraud Allegations
   If your lender believes you committed fraud, you could face serious problems. Fraud can lead to investigations by the U.S. Department of Justice (https://www.justice.gov), that was authorized to enforce federal laws. It’s important to have a legal team that can defend you if there are criminal accusations. If you took funds, and default within the first 7-15 days, the lender might allege fraud.

4. Paperwork and Deadlines
   Courts sometimes issue strict deadlines that were created to keep the legal process moving. When you miss these deadlines, you might lose by default. A business debt relief helps you keep track, so you don’t accidentally lose your case.

Potential Downsides

1. Cost of Hiring a Lawyer
   Lawyers charge fees that can add up quickly. If you already struggle with bills, paying for an attorney can feel like a heavy burden. Often, some people will say – if I could afford a lawyer, i’d just repay the original loan. It’s a difficult decision.

2. Time Commitment
   Working with a business debt relief lawyer who was dedicated to your case means you’ll spend time gathering documents, explaining your finances, and talking about debt relief strategies. This process might feel slow when you want immediate relief. Many lenders will start contacting vendors, and clients, of yours, in order to force you to give them their money back.

3. No Guaranteed Results
   Even the best attorney who was highly experienced cannot promise a outcome. Creditors can refuse to lower your balance, and lawsuits can still happen.

Crimes, Penalties, and Punishments
Many people want to know if failing to pay business debt that was taken can land you in jail. Generally, not paying a debt is not a crime. However, lying to get credit or misusing funds might be considered fraud. Fraud is a serious offense that was investigated by government agencies, such as the Department of Justice, and it can lead to steep penalties or even imprisonment. If lenders can prove you fabricated documents, this could result in a potential criminal accusation.

Example: Material Misrepresentation
If a business owner who was seeking a loan knowingly inflates revenue numbers, that can be deemed “material misrepresentation.” The consequence is that you could face a criminal investigation, which may lead to charges, fines, or jail time. Often, we have seen situations where potential clients create fake bank statements in order to inflate revenue.

How We Defend You
At DelanceyStreet.com, we use a multi-step approach:

1. Reviewing Contracts
   We examine every lender agreement that was signed, in order to find defenses or mistakes. If contracts are unfair, we create legal arguments to protect you. The consequence of finding these errors is that you may gain the upper hand in negotiations.
2. Negotiating Settlements
   We talk to creditors who were pressuring you, and try to reduce the balance or lower your interest rates. The consequence is that your monthly payments might become manageable.
3. Protecting Assets
   If a creditor tries to freeze your bank account, we fight back in private negotiations, and court. The consequence of this aggressive defense is that you could continue normal business operations, without fear of losing everything.

Penalties for Ignoring Business Debt

1. Judgments
   A lender that was granted a judgment can garnish wages or go after business property. Your business assets are all fair game. The consequence is that your cash flow may shrink, which can damage your ability to pay employees and overhead.
2. Damage to Credit
   Non-payment to lenders can create negative marks that stay for years. The consequence is that lenders may refuse to work with you in the future, blocking you from emergency funds. If you ruin your payment record, this can make it so new loans you take come at a higher rate, or worse terms.
3. Elevated Legal Costs
   If you wait until a lawsuit is filed, legal fees can double or triple. The consequence is that the money you hoped to save is used on extra lawyer bills. Many lenders prefer you default, because they make more money with punitive fees.

Government Resources
The Federal Trade Commission (https://www.ftc.gov), that was set up to protect consumers from unfair business practices, offers information on avoiding scams related to debt relief. The U.S. Small Business Administration (https://www.sba.gov), that was founded to assist small businesses, provides details about safer financing options.

Pros and Cons in a Nutshell
PROS

• Legal Defense: You have an advocate that can stop aggressive creditors.
• Structured Negotiation: You might lower your debt, which frees up cash.
• Criminal Protection: If a fraud claim appears, a lawyer helps you stay safe.

CONS

• Additional Fees: Costs can strain your budget when money is tight.
• Time-Intensive: You spend hours collecting documents and communicating.
• Uncertain Outcome: There is no guaranteed reduction in what you owe.

We Can Help You
Choosing whether to hire a lawyer is a personal decision that was shaped by your finances, time, and comfort with risk. Having a strong legal team by your side could be the difference between total financial collapse and steady recovery.

At DelanceyStreet.com, we pride ourselves on helping business owners find practical solutions. We know you’re busy, and we know you need relief fast.