2026 Best MCA Defense Lawyers in Memphis, TN

Top MCA Defense Firms for Memphis Businesses - 2026

To find one, visit the Tennessee Board of Professional Responsibility website. It does not refer or recommend lawyers, but only lists referral services. You can also access a free online directory which lists every licensed Tennessee attorney along with any public discipline they have received.

Beware of specialist claims. No state agency like the Tennessee Commission on Continuing Legal Education can certify specialists. An attorney may only call herself a specialist if she has been certified by a legal specialty certifying organization which has been accredited by the American Bar Association. That attorney must then register as a specialist with the CLE Commission.

MCA Defense

Speed matters with these cash advance lawsuits; in New York a default judgment can be entered as little as 30 to 45 days after service is handed over if a response is not filed. Many owners learn of the suit only when the bank account freezes. If you find yourself in that situation, talk to an attorney experienced in MCA defense immediately.

Confession of judgment can apply if it has been authorized as part of an older MCA agreement. The New York law covering this, CPLR 3218, was amended August 30, 2019. It cannot be filed in New York against a debtor with no residence or place of business there. Tennessee has its own rule. Under Tennessee Code 25-2-101 any power to confess judgment given before a lawsuit is filed and served is void.

A good MCA defense attorney does not see a hopeless case. In arguing that a merchant cash advance is really a loan, one looks at how the MCA is papered. It is normally worded as a purchase of future receivables. However, if the agreement works like a loan (fixed payments; recourse against the business owner; no actual reconciliation), a court may be willing to characterize it as a loan subject to usury defenses. Invalid service can also support a request to vacate the default. Noticeably, a significant number of default judgments rest on invalid service of process. This is often due to business information being outdated when a process server is assigned. To obtain relief, the motion to vacate must include a meritorious defense and a good reason for failing to respond in the first place.

Look at what the MCA contract’s “reconciliation” clause says and if the funder honored it. That clause lets the daily payment drop when revenue falls. A string of denials on record may incline a court to rule the MCA as actually a loan despite the terms of the agreement. Other red flags may include the funder contacting your customers directly or threatening criminal action. Both can support counterclaims.

Because most merchant cash advance disputes settle, you want an attorney who has a good track record at settling them. The business which has answered timely and raised real defenses is in a stronger negotiating position than the one whose attorney must first try to void a default judgment. A settlement should also get rid of the UCC-1 lien the funder filed. Make sure the funder files a UCC-3 termination statement since old liens can block new financing.

Defend yourself but do not panic. Changing banks or shutting off ACH withdrawals on your own can get you sued for breach of contract. Do not ignore a notice or sign a confession of judgment as part of a debt workout. That could destroy your ability to fight.

Judgments from other states usually must be domesticated in Tennessee before Tennessee banks can be served. After the judgment has been registered with a Tennessee court, no garnishment can be issued until 30 days after the debtor is served with a summons. It is worth noting that that window gives time to act.

Bankruptcy May Be the Option of Choice

When the debt simply looks too big to overcome, bankruptcy may be the option of choice for some. The automatic stay that comes with filing stops almost all collection action, including ACH withdrawals, levies and lawsuits. For small business Chapter 11 cases, Subchapter V offers a streamlined form of reorganization. The total amount of debt in an eligible case is capped ($3,424,000 for cases filed on or after June 21, 2024). Memphis-area businesses (Shelby, Fayette, Lauderdale, Tipton counties) file with the Western Division Bankruptcy Court at 200 Jefferson Avenue.

Whichever route you take, ask about fees. Where a lawyer takes a case on a contingency basis, the parties must agree in writing as to how expenses will be deducted. Nonrefundable fees may be charged under Tennessee law. The client must agree in writing to this arrangement, which must be explained in clear language. Also, be sure to ask about consultation fees when booking appointments; fees vary from lawyer to lawyer. The Bar Association listing does not guarantee a specific fee or a free consultation. The Memphis Bar Association lists a monthly free advice clinic the second Saturday of each month at the Benjamin Hooks Central Library.

Bring everything you have to the first consultation. At the very least, provide the broker’s name, the MCA paperwork and full contact information for both the funding source and its counsel. Include any lawsuit papers, any messages between you and the funder, and a record of all ACH withdrawals since the account opened.

These sources can help you decide who the best merchant cash advance defense lawyer is for you, one who understands the kinds of claims made by New York plaintiffs. The earlier you talk to an attorney, the more options may be available to you.