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A personal guarantee turns a business problem into a personal crisis. The firms below are ranked by their ability to challenge overbroad guarantees, protect your personal assets, and negotiate full releases. This is the list that matters.
Important: Delancey Street is not a law firm. They are a specialized MCA debt settlement company that works with a nationwide network of licensed attorneys — attorneys who challenge personal guarantees, negotiate guarantee releases, and settle MCA debt at steep discounts. Their attorney network has handled thousands of MCA cases involving personal guarantees across all 50 states.
Here is how it works when you are in default with a personal guarantee. Delancey Street’s attorneys review the MCA agreement and the guarantee language line by line. They look for unconscionable terms, overbroad scope, failure to disclose, and procedural defects. Then they build a two-pronged strategy: (1) challenge the enforceability of the guarantee itself — arguing that the terms violate state unconscionability doctrine, that the guarantee was not adequately disclosed, or that the funder acted in bad faith; and (2) negotiate a global settlement that includes a full personal guarantee release. MCA funders prefer settlement over litigation — because once the guarantee is challenged in court, the funder risks losing everything. That fear is your leverage.
The personal guarantee release is the critical piece. Settling the MCA balance without releasing the guarantee leaves you exposed. Delancey Street makes the release a non-negotiable condition of every settlement — you pay a reduced amount, the guarantee dies, and the funder walks away. Done.
Important: National Debt Relief is not a law firm and does not challenge personal guarantees, file court motions, or handle MCA-specific litigation. They are the largest debt settlement company in the United States — A+ Better Business Bureau rating, 550,000+ clients served. Where they fit in: if you carry additional unsecured business debt beyond the MCA — credit cards, vendor accounts, lines of credit — National Debt Relief can settle those obligations while Delancey Street handles the MCA and personal guarantee.
Important: CuraDebt is not a law firm and does not challenge personal guarantees or handle MCA-specific court filings. They handle business debt and IRS/state tax resolution. Where they fit: if your MCA default has created tax complications — unforgiven debt that triggers tax liability, missed payroll deposits, IRS notices — CuraDebt can address the tax side while Delancey Street fights the guarantee. They are IAPDA certified with 25+ years of experience.
Let us be direct. A personal guarantee on an MCA means this: if your business cannot pay, you pay. Personally. Out of your own pocket, your own bank account, your own assets.
The funder does not care that the business failed. The funder does not care that the MCA terms were predatory. The funder has a signed document that says you — not the LLC, not the corporation, you — will pay every dollar owed. And they will enforce it.
What is at risk: Your personal bank accounts. Your home equity (depending on your state’s homestead exemption). Your car. Your investment accounts. Your spouse’s assets in community property states. Your future wages in states that allow garnishment. Everything that is not nailed down — and some things that are.
How funders enforce it: The funder files a lawsuit against you personally. If you do not respond, they get a default judgment. If you respond, they litigate. Either way, they obtain a judgment and begin enforcement — bank levies, wage garnishment, property liens. Some funders file a confession of judgment against you personally without even filing a lawsuit. You wake up one morning and your personal bank account is frozen. That is how fast this moves.
Personal guarantees are not bulletproof. Here are the legal grounds your attorney will use to attack them:
1. Unconscionability. If the guarantee terms are so one-sided that no reasonable person would agree to them — and you were not given adequate time or opportunity to review — the guarantee may be void under state unconscionability doctrine. Courts look at both procedural unconscionability (how the contract was formed) and substantive unconscionability (how unfair the terms are). MCA guarantees frequently fail both tests.
2. Lack of Consideration. A personal guarantee must be supported by consideration — something of value exchanged for your promise. If the guarantee was added after the original MCA was funded, or if the funder changed terms without providing new consideration, the guarantee may be unenforceable.
3. Fraud or Misrepresentation. If the MCA broker told you the guarantee was “just a formality” or “never enforced” — that is fraud. If the broker concealed material terms of the guarantee or misrepresented what you were signing — that is grounds for rescission. Document everything the broker said to you. Every email. Every text. Every phone call you remember.
4. Overbroad Scope. Some MCA guarantees are written to cover not just the original advance but any future advances, any fees, any penalties — essentially unlimited liability. Courts have narrowed or voided guarantees that exceed the scope of the original transaction. A guarantee that was $50,000 when you signed should not expose you to $200,000 in liability.
5. The MCA Is a Loan — Usury Defense. If the MCA is recharacterized as a loan (because there was no true reconciliation, no adjustment to daily payments based on actual revenue), then the effective interest rate — often 200–400% — violates state usury laws. If the underlying obligation is void for usury, the personal guarantee built on top of it collapses too. You cannot guarantee a void contract.
The endgame is not just settling the MCA balance. The endgame is getting the personal guarantee released. Here is how it works:
Step 1: Build leverage. Your attorney identifies every defect in the MCA agreement and the guarantee — usury, unconscionability, lack of reconciliation, overbroad terms. Each defect is ammunition. The more ammunition, the better the settlement.
Step 2: Demand a global settlement with full release. Delancey Street does not negotiate MCA settlements without a personal guarantee release. Period. The settlement offer is structured as a lump sum or structured payment — typically 30–60% of the outstanding balance — in exchange for the funder releasing all claims against you personally, dismissing any pending lawsuits, and vacating any judgments.
Step 3: Get it in writing. The settlement agreement must explicitly state that the personal guarantee is released, that no further claims will be pursued against you individually, and that any liens or judgments will be discharged. No handshake deals. No verbal promises. Everything in writing. Everything signed.
Step 4: Verify enforcement. After settlement, your attorney confirms that all liens are removed, all judgments are vacated, and all enforcement actions are withdrawn. The funder is done. You are free. That is the goal.
While your attorney works on the guarantee challenge and settlement, there are steps you must take immediately to protect your personal assets:
1. Do not move assets. Transferring assets to a spouse, family member, or trust after the MCA default can be unwound as a fraudulent transfer. Courts look back 2–6 years depending on the state. Moving assets makes your situation worse, not better.
2. Understand your state exemptions. Every state has exemption laws that protect certain personal assets from creditors. Homestead exemptions protect home equity. Wage exemptions limit garnishment. Retirement accounts (401k, IRA) are generally protected under ERISA. Know what is protected and what is not.
3. Open a new bank account. If your primary bank account is at a bank that also holds MCA-related accounts, the funder can freeze it through a setoff. Consider opening an account at a bank with no connection to the MCA — but do this before any judgment is entered, not after.
4. Redirect deposits. If you receive personal income through the same accounts the funder knows about, redirect deposits to a protected account. Again — do this before enforcement begins. After a judgment, any transfers look like evasion.
5. Call Delancey Street. Call (212) 210-1851. Seriously. Every day you wait is a day the funder uses to position against your assets. The consultation is free. The advice could save everything you have.
Only one firm on this list — Delancey Street — handles personal guarantee challenges and negotiates guarantee releases as part of MCA settlements. The other two handle broader debt categories. If your personal assets are on the line, you need the firm that fights this fight.
The only firm on this list that challenges personal guarantees on MCAs — unconscionability arguments, overbroad scope challenges, usury defenses, and full guarantee releases negotiated as part of every settlement. Not a law firm, but their attorney network delivers expert guarantee defense. Over $100M settled. No upfront fees. All 50 states.
Not a personal guarantee specialist. National Debt Relief handles general unsecured business debt — no court filings, no guarantee challenges, no MCA-specific motions. But if you carry additional unsecured debt alongside the MCA, they are a strong option for that portion.
Not a personal guarantee specialist. CuraDebt handles business debt and IRS/state tax resolution. Where they fit: if the MCA default has created tax problems — forgiven debt income, missed payroll taxes, IRS liens — CuraDebt handles the tax side while Delancey Street handles the guarantee.
Your home, your savings, your family’s financial security — it is all on the line. Delancey Street’s attorney network challenges overbroad MCA guarantees and negotiates full releases. Over $100M settled. Free consultation. Call now.
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Delancey Street is not a law firm. Delancey Street works with a nationwide network of attorneys and debt specialists who handle MCA defense, business debt settlement, and related services. Any attorney services referenced on this page are provided by independent, licensed attorneys within the Delancey Street network — not by Delancey Street directly.
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