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When you have employees, MCA default defense is not just about settling debt — it is about keeping the business operational while the debt gets resolved. The firms below are ranked by their ability to protect payroll, maintain operations, and negotiate MCA settlements. Your employees are counting on you. This is how you come through for them.
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 understand that when you have employees, the stakes are different. The first priority is protecting payroll and keeping the business running. The second priority is settling the MCA debt. Delancey Street handles both simultaneously.
Here is how it works when employees are in the picture. Delancey Street’s team immediately addresses the cash flow crisis: they help you set up a separate payroll account at a different bank, redirect revenue away from the MCA-linked account, and — if the funder has already frozen your account — their attorney network files emergency motions to unfreeze it. Then, while payroll is protected, they negotiate with the MCA funder using the business’s going-concern value as leverage. The argument is simple and powerful: "This business has employees and revenue. If you settle at a reasonable number, you get paid. If you shut this business down, you get nothing." MCA funders respond to that math. Settlements at 30–60% are the result.
Important: National Debt Relief is not a law firm and does not handle MCA-specific defense, payroll protection strategies, or emergency account unfreeze motions. 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 your business carries credit card debt, vendor obligations, or lines of credit alongside the MCA — National Debt Relief can address that general unsecured debt while Delancey Street handles the MCA and payroll crisis.
Important: CuraDebt is not a law firm and does not handle MCA-specific defense or payroll protection. They handle business debt and IRS/state tax resolution. If your MCA default caused missed payroll tax deposits — and the IRS is now pursuing you for the Trust Fund Recovery Penalty — CuraDebt can address the tax side while Delancey Street handles the MCA. They are IAPDA certified with 25+ years of experience.
When you default on an MCA, the funder does not care about your employees. They care about recovering their money. Every action they take — daily ACH debits, account freezes, UCC lien enforcement — drains the same pool of money you need for payroll. The collision is inevitable.
Daily ACH debits vs. payroll. The MCA funder pulls daily debits from your bank account — $500, $800, $1,200, whatever the agreement says. Those debits happen automatically, every business day, before you can distribute funds for payroll. If the debit hits the morning of payday and brings your balance below the payroll amount, the payroll bounces. Your employees do not get paid. That is not a theoretical risk. It happens every day to businesses across the country.
Account freezes. If the MCA funder obtains a judgment — through a lawsuit or a confession of judgment — they can issue a restraining notice to your bank. The bank freezes the entire account. Everything stops. You cannot write checks, make ACH payments, or issue payroll. A frozen payroll account is an emergency that requires immediate legal action.
The cascade. When employees do not get paid, they leave. When employees leave, you cannot serve customers. When you cannot serve customers, revenue drops. When revenue drops, you cannot settle the MCA debt. The funder has now destroyed the very business they need to survive in order to recover their money. This cascade is your leverage — because the funder loses when your business dies.
Protecting your employees starts with separating their paychecks from the MCA funder’s reach. Here is the playbook.
1. Open a dedicated payroll account at a different bank. This is step one — and it is non-negotiable. Open a new business checking account at a bank where the MCA funder has no relationship and no account information. This account is used exclusively for payroll. Fund it with the exact amount needed for each payroll cycle. The MCA funder’s ACH authorization applies only to the account listed in the MCA agreement. A separate payroll account at a different bank is outside their reach.
2. Redirect revenue to the new account. Change your payment processing, customer invoicing, and deposit instructions so that incoming revenue flows to the new account instead of the MCA-linked account. This stops the daily debits from consuming your operating funds. Do not close the old account — that triggers breach provisions. Simply redirect the income stream.
3. Use a payroll service. If you are not already using a payroll service like ADP, Gusto, or Paychex, start now. A payroll service acts as a buffer between your bank account and your employees’ paychecks. It automates tax withholding, handles direct deposits, and ensures compliance with DOL requirements. Some payroll services also offer payroll financing that can bridge a short-term gap.
4. Prioritize payroll taxes above everything. Payroll taxes — federal income tax withholding, Social Security, Medicare, state withholding — are trust fund taxes. You collected them from your employees on behalf of the government. Under the Trust Fund Recovery Penalty, the IRS can hold you personally liable for 100% of unpaid payroll taxes. This liability survives bankruptcy. Pay payroll taxes before any MCA payment. Always.
5. Call Delancey Street immediately. Call (212) 210-1851. They will coordinate the payroll protection strategy with the MCA negotiation strategy so that your employees stay paid while the debt gets resolved. Every day you wait is a day closer to missing payroll.
MCA funders think they hold all the cards. They do not. Here is the card they cannot beat: your business is a going concern with employees, revenue, and customers. That is worth something. A dead business is worth nothing.
The funder’s dilemma. Every MCA funder faces a choice: push hard and risk killing the business, or settle and recover something. When a business has employees, the stakes of pushing too hard are higher. An account freeze that causes a missed payroll triggers employee departures, customer loss, and revenue collapse. The funder knows this. A smart negotiator uses it.
The going-concern argument. Delancey Street’s negotiators present the funder with a clear picture: "This business has 12 employees, $80,000 in monthly revenue, and a loyal customer base. If you settle at 40%, you recover $40,000 on a $100,000 balance. If you freeze the account and the business closes, you recover $0 through a UCC lien on worthless assets." That math wins. Every time.
The DOL compliance argument. When the funder’s actions threaten payroll, the business owner’s attorney can argue that the funder’s enforcement activity is causing the business to violate federal and state labor laws. This creates potential liability for the funder under tortious interference theories. It is an aggressive argument — but it gets funders’ attention.
1. Call Delancey Street immediately. Call (212) 210-1851. Tell them payroll is at risk. They will prioritize your case and begin the payroll protection and negotiation strategy the same day. Do not wait until Friday morning.
2. Open a separate payroll account today. Go to a different bank. Open a business checking account. Move enough funds to cover the next payroll cycle. This is the firewall that protects your employees while Delancey Street negotiates with the funder.
3. Pay payroll taxes first. Before any other payment — before rent, before suppliers, before the MCA — remit payroll taxes. The IRS Trust Fund Recovery Penalty is personal, non-dischargeable, and unlimited in collection timeframe. Payroll taxes are the one debt you cannot negotiate away.
4. Do not make partial payroll. Paying some employees and not others, or paying partial wages, creates legal liability and destroys morale. If you cannot make full payroll, contact Delancey Street immediately for emergency options — including emergency account unfreeze motions if the funder has frozen your account.
5. Communicate with your team. You do not need to share financial details. A simple, honest message works: "We are working through a financial challenge with professional help. Your paychecks are protected. I will keep you updated." Honesty builds loyalty. Silence breeds fear and departures.
Only one firm on this list — Delancey Street — handles MCA debt settlement with payroll protection as a core strategy. The other two handle broader debt categories. They are not built for this fight.
The only firm on this list that protects payroll while settling MCA debt. Emergency account unfreeze motions, separate payroll account setup, going-concern negotiation leverage, and settlements at 30–60%. Not a law firm, but their attorney network keeps your business alive and your employees paid. Over $100M settled. No upfront fees. All 50 states.
Not a payroll protection or MCA defense specialist. National Debt Relief handles general unsecured debt. If you have credit card debt or vendor obligations alongside the MCA, they can address that portion.
Not a payroll protection or MCA defense specialist. CuraDebt handles business debt and IRS/state tax resolution. If missed payroll created IRS Trust Fund Recovery Penalty exposure, CuraDebt addresses the tax side while Delancey Street handles the MCA.
Payroll protection. MCA debt settlement. Business continuity. Delancey Street handles all of it — simultaneously. Over $100M settled. Free consultation. Call now.
Call to Protect Payroll NowThis page is provided for informational and educational purposes only and does not constitute legal, financial, or professional advice. The content on this page should not be construed as an endorsement, recommendation, or guarantee of any specific debt settlement company or outcome. Individual results may vary based on the nature of the debt, creditor policies, and the specific circumstances of each case.
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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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