Are you a small business owner in South Carolina who is feeling overwhelmed by a merchant cash advance? Do you worry about lawsuits or criminal penalties because you can’t keep up with your MCA payments? If so, we can help you. We are DelanceyStreet.com, a top tier business debt relief company, and our mission is to give you the professional support you need.

Understanding What an MCA Is
A merchant cash advance (MCA) is a financing product that was created to help businesses that need quick cash. A merchant cash advance that was taken out by a struggling company can become a burden if daily or weekly payments are too high. Those frequent withdrawals can crush your cash flow, which can lead to problems like bounced checks or late vendor payments.

If you fall behind on payments, you might face lawsuits or even allegations of wrongdoing. Lawsuits can result in money judgments that are large and can lead to wage garnishments or bank levies. If a creditor accuses you of fraud, you might also face criminal liability. If you need more information on your rights in South Carolina, you can visit the official South Carolina Judicial Branch website at https://www.sccourts.org/ for court forms and explanations.

Why MCAs Might Lead to Legal Trouble
Businesses that are strapped for cash often sign MCAs without fully understanding the terms. High fees, aggressive collection tactics, and short repayment periods can push a business into default. A default that was triggered by missed payments can result in harsh actions, including lawsuits. Once a lawsuit is filed, the court might issue a judgment if the case isn’t defended properly.

Penalties, Crimes, and Punishment
People often ask: “Is failing to repay an MCA a crime?” Generally, failing to pay back a debt is not a crime by itself. However, certain acts that are fraudulent can lead to criminal charges. Fraud that was committed when applying for an MCA can lead to criminal investigations. Evidence that was illegally obtained by a lender may be challenged, but the process can be complicated, and the consequences can be severe if you ignore it.

Penalties that can arise from fraud-related allegations include:

• Fines that can range from thousands of dollars to millions, which can devastate your personal and business finances.
• Probation that can force you to adhere to strict rules, which can restrict your freedom and your ability to operate your business normally.
• Imprisonment that can disrupt your life and lead to the closure of your business, which can hurt your clients, employees, and family.

For more information on federal penalties, you can check the U.S. Department of Justice at https://www.justice.gov/.

Situations and Consequences: A Simple Flow Chart
Example 1 -> Missed MCA Payments -> Creditor Demands Lump Sum -> Risk of Lawsuit
Example 2 -> Suspected Fraud -> Investigation Begins -> Criminal Charges
Example 3 -> Default Judgment -> Bank Accounts Frozen -> Business Failure

Each phase leads to stressful outcomes that can harm you and your company. When you act quickly and get legal help, you can often prevent a bad situation from getting worse.

Strategies We Use to Defend You
We, at DelanceyStreet.com, believe in open communication with lenders and courts, which can help build trust and keep negotiations productive. When you need a defense attorney’s help, we have a sister-law firm that can assist. The best strategy that was created for your defense will depend on your specific case. Below are common defense approaches:

1. Challenging the Contract
   A contract that was unfair or misleading may not hold up in court. If your MCA agreement had hidden fees or confusing clauses, we will argue that it was unconscionable. Contracts that violate public policy can sometimes be voided. If the contract is voided, you won’t be obligated to follow its terms, which can reduce your debt dramatically.

2. Proving Lack of Fraudulent Intent
   Fraud charges often require proof that you knowingly misled someone. If the evidence that was collected against you is weak or illegally obtained, it might be thrown out, which can lead to dismissal or reduced charges. This is critical, because any criminal conviction can result in expensive fines and damage to your reputation.

3. Negotiating a Settlement
   If the lender is open to discussion, we will attempt a settlement that might lower the total amount owed. A settlement that was reached before trial can help you avoid court fees, which can be quite large, and can stop the lender from pursuing further legal action. Once the settlement is signed, you can breathe easier and focus on your business again.

4. Proving Improper Debt Collection Tactics
   Lenders that violate debt collection rules can face penalties. Under federal guidelines provided by the Federal Trade Commission (see https://www.ftc.gov/), creditors cannot threaten you with criminal prosecution if no fraud was committed. They must also respect your rights under the Fair Debt Collection Practices Act. If the lender crossed the line, we can use that violation to strengthen your defense and seek damages or a dismissal of the claim.

5. Avoiding Confession of Judgment Issues
   A confession of judgment (COJ) that was included in some merchant cash advances can let the lender get a judgment without a standard court hearing. This can be devastating, because you may lose the chance to dispute the debt. We can review your contract and see if the confession of judgment clause is enforceable. If it isn’t valid, we’ll argue to throw it out, which might stop immediate collection actions.

Key Points to Remember

• Lawsuits can lead to default judgments, which can trigger wage garnishments, bank account levies, and property liens.
• Criminal charges can lead to imprisonment, which can destroy your family life and your business.
• Fraud allegations can lead to massive fines, which can push a successful company into bankruptcy.

“We Can Help You”
DelanceyStreet.com focuses on business debt relief for clients nationwide. If you’re in South Carolina, and you’re worried about an MCA lawsuit, you are not alone. Many business owners feel trapped by high-interest merchant cash advances. We understand the pressures you face. We want to create a clear plan that protects your rights, that defends you from legal threats, and that lets you keep your business alive.

Our Step-by-Step Approach

1. Free Consultation: We start by assessing your MCA agreement, your payment history, and any potential claims the lender might have against you. This helps us see if you’re at risk for lawsuits or criminal accusations.
2. Legal Analysis: Our sister-law firm looks at the facts of your case in depth. Evidence that was illegally obtained could be excluded, which might weaken the creditor’s argument. We also check for potential claims against the creditor if their tactics were unfair.
3. Settlement or Defense: We try to settle your debt at an amount that is fair. If settlement fails, we are prepared to defend you in court, which might involve questioning the validity of the MCA or challenging any fraud allegations.
4. Ongoing Support: During this entire process, we keep you informed about each development. Frequent updates that describe your options ensure you can make the best decision for your business.

What If You Face Criminal Charges?
If the lender, or the authorities, claim you committed fraud, you must act quickly. Criminal cases move fast, and convictions can have life-changing consequences. Charges that were brought under South Carolina statutes can be found on the South Carolina Legislature website at https://www.scstatehouse.gov/. If you are convicted, penalties can include probation, restitution, and even prison time. Once you face those penalties, you will find it hard to keep your business going. Our role is to examine the prosecution’s evidence. If the evidence that was presented fails to show any intent to mislead, or if the evidence that was used against you was obtained unlawfully, we will file a motion to dismiss.

Potential Consequences for Different Outcomes

• Case Dismissed: You walk away free, which can help you rebuild your reputation and credit.
• Settlement Agreement: You pay less than the full amount, which can free up cash flow, allowing you to cover payroll and other bills.
• Plea Bargain (Criminal Case): You might agree to lesser charges, which can minimize fines or jail time, letting you go back to work sooner.
• Conviction: A conviction that leads to incarceration can cause you to lose customers, employees, and your entire operation.