Are you dealing with a merchant cash advance (MCA) problem in Texas? Are you unsure how to handle lawsuits or threats of legal action from MCA creditors who demand immediate repayment? Regardless, we can help you understand your options and protect your interests.

We are DelanceyStreet.com, a top tier business debt relief company based out of NYC, that helps clients nationwide. We work with businesses of all sizes, who face difficulties with MCAs, credit cards, SBA loans, and more. Below, we’ll explain key points about Texas MCA defense, potential penalties, and how we’d defend you.

WHAT IS A MERCHANT CASH ADVANCE?

A merchant cash advance is an advance on your future credit card sales that was designed to provide quick funding for businesses. MCA agreements typically include higher fees and daily or weekly repayment schedules, which can overwhelm cash flow. Businesses that are struggling to repay an MCA often experience demands from lenders or threats of legal action.

TEXAS LEGAL CONTEXT

Texas law that was created to protect consumers and businesses can be found at TexasAttorneyGeneral.gov. You might see references to the Texas Business & Commerce Code, which can include rules on contract enforcement. Anyway, if you fail to meet MCA terms, the lender can file a lawsuit in a Texas court. A lawsuit that was filed against your business can lead to judgments or liens, which may put your assets at risk.

PENALTIES AND CRIMES & PUNISHMENT

1. Breach of Contract
   A contract that was signed can be enforced in civil court. Breaching that contract can result in monetary judgments. Judgments that are issued can lead to wage garnishments or property liens, which hurt your business and personal finances.

2. Potential Fraud Allegations
   Fraud that was alleged by a lender might bring criminal consequences if there’s evidence you never intended to repay. Fraud charges that are proven can involve fines or even imprisonment, which can devastate your future and your business. For more information on fraud, look at FTC.gov for general consumer protection guidelines.

3. Check-Related Crimes
   If you wrote checks that were returned for insufficient funds or if you stopped payments to block the MCA provider intentionally, you might be accused of check fraud. Check fraud that was established could lead to criminal penalties and potential jail time under Texas law. Consequences that follow a check-fraud conviction can include large fines and a criminal record, which can permanently damage your reputation.

WHY EVIDENCE MATTERS

Evidence that was illegally obtained may be inadmissible. If the court rules that certain evidence can’t be used, the creditor might lose the chance to prove their case, which could result in a more favorable outcome for you. Anyway, you need a solid defense to challenge questionable evidence and preserve your legal rights.

STRATEGIES FOR HOW WE’D DEFEND YOU

Look, we excel at defending clients who face MCA lawsuits and other forms of debt-related claims. Our approach includes:

• Negotiation with Creditors
  We engage lenders who are pursuing you and seek a new payment plan or settlement. A settlement that is reasonable could lower the total amount owed, which can free your cash flow and help keep your business operational.

• Examining the Contract
  We review MCA agreements that were signed to find weaknesses or unfair terms. A contract that was misleading or that contains hidden clauses may be challenged in court. If the agreement is proven unenforceable, then the creditor loses leverage, which can lead to dismissal of the case.

• Challenging Evidence
  We question any lender documents that were not properly filed or validated. Evidence that was improperly collected or incomplete may be struck from the record. Without this evidence, the creditor might fail to meet the burden of proof, which can end in the dismissal of claims.

• Addressing Criminal Accusations
  If there are allegations of fraud or other criminal wrongdoing, we act fast. We gather documents that prove your intent was genuine. By showing that you tried to repay, you decrease the risk of severe fines or time behind bars, which can protect your freedom and business.

• Representation in Court
  We attend court hearings and defend you. Court orders that are issued against you can lead to garnishments or other penalties. By having us on your side, you get counsel who works to reduce or eliminate negative outcomes, which can help you move forward with your business.

UNDERSTANDING THE CONSEQUENCES

The bottom line is that an MCA default can escalate. This might lead to lawsuits, judgments, or— in rare fraud cases— criminal charges. We get it: no one wants to face those outcomes. That’s why it’s crucial you speak to an attorney who is experienced in Texas MCA defense. If you wait, you risk losing important legal options, which can make it harder to fix the situation.

ABOUT DELANCEYSTREET.COM

We are DelanceyStreet.com, a top-tier business debt relief company that offers:

• Texas MCA Defense
• Debt Restructuring
• Business Debt Settlement
• Negotiation Strategies

We believe in open communication with creditors and in strong legal tactics. Our team that was trained extensively can stand up to aggressive lenders on your behalf. If you find yourself in a tough position, contact us for a confidential consultation. A consultation that happens right away can reveal possible defenses and help you avoid big mistakes that might cost you in the long run.

FAQ: FREQUENTLY ASKED QUESTIONS

1. Is MCA default a crime?
   Defaulting on an MCA is typically a civil matter. A crime that was committed may be alleged if fraud or deliberate deception is proven. In that scenario, you might be charged with a felony, which can result in large fines or prison.

2. Do I need a local Texas lawyer?
   Yes. Having a Texas-based defense team who was admitted to the local bar helps you. A local attorney that is familiar with Texas courts can navigate state-specific rules, which can improve your odds of success.

3. Where can I learn more about Texas laws on contracts?
   You can read the Texas Business & Commerce Code online. That website provides official legal language related to contracts and remedies.