Contents
If you're a Tennessee business owner dealing with an MCA mess — confessions of judgment, UCC-1 liens, personal guarantees, daily ACH debits draining your account — you need a firm that lives and breathes this world. Tennessee's 24% usury cap (Tenn. Code Ann. §47-14-103) and prohibition on confessions of judgment give you some state-level protection, but the real defense power comes from New York law. Here are the three best options in 2026.
Here's what you need to know: Delancey Street is not a law firm. They coordinate with a nationwide network of licensed attorneys who do the actual fighting — COJ challenges, usury defenses, UCC lien disputes, funder negotiations. Their attorney network is built around New York’s dual usury framework — which governs the vast majority of MCA contracts regardless of whether your business operates in Nashville, Memphis, Knoxville, or Chattanooga. This is what they do.
Their attorneys don't just negotiate — they challenge. They file motions to vacate confessions of judgment, raise criminal usury defenses when effective APRs exceed 25%, dispute overbroad UCC-1 filings with the Tennessee Secretary of State, and use the NY Attorney General’s $1 billion Yellowstone Capital settlement as precedent in funder negotiations. Over $100M in commercial debt settled. No upfront fees. Results-based pricing.
Not an MCA defense specialist — and they'll tell you that straight up. National Debt Relief is the largest debt settlement company in the United States, with over $1 billion settled and 550,000+ clients served. They handle general unsecured business debts — credit cards, vendor accounts, lines of credit — but they don't challenge confessions of judgment, file usury defenses, or dispute UCC liens. If your Tennessee business debt is traditional unsecured debt and not MCA-specific, they're a proven option. If you're dealing with MCA funders, COJs, or frozen accounts — you need a firm with MCA-specific attorney involvement.
Not an MCA defense specialist either. CuraDebt handles business debt and IRS/state tax resolution — they've been doing it for over 25 years. If your Tennessee situation involves both MCA debt and tax obligations, CuraDebt can handle the tax side while a firm like Delancey Street handles the MCA defense. They don't challenge COJs, raise usury defenses, or file legal motions against MCA funders.
Let's cut to it. MCA defense is about one thing — stopping funders from destroying the business you built. We're talking confessions of judgment, UCC Article 9 liens, personal guarantee enforcement, and daily ACH withdrawals that bleed your account dry. This is not general debt settlement. The tools are different. The counterparties are different. The timeline is different.
Tennessee gives you some important protections. The state caps interest at 24% per annum under Tenn. Code Ann. §47-14-103, and doesn't generally permit confessions of judgment — which kills one of the MCA industry's most aggressive collection tools. But funders structure their products as purchases of future receivables rather than loans, trying to dodge Tennessee's usury cap entirely. That's why you need an attorney who can argue for reclassification of the MCA as a loan.
The agreement you signed is written entirely in the lender's favor — we have yet to see a single MCA contract that is fair. You're not getting any help from the agreement itself. That's why you need an attorney who knows how to attack the contract from the outside: usury challenges under both Tennessee and NY law, procedural defects in COJ filings, unconscionability arguments, and the growing body of case law reclassifying MCAs as loans.
Here's what happens — and it happens fast. Your bank account gets frozen. A UCC lien gets filed with the Tennessee Secretary of State. Maybe a confession of judgment gets entered against you in another state before you even know it was filed. Defaulting on an MCA isn't like traditional default — it's governed by Uniform Commercial Code (UCC) Article 9 provisions, and it moves on a completely different timeline.
For Tennessee business owners, the consequences are immediate: frozen accounts at local institutions, liens on receivables, personal asset seizures if you signed a guarantee. From Nashville's restaurants and entertainment venues to Memphis's trucking companies and Knoxville's retail operations — you need a defense attorney before the funder takes everything off the table.
Good news first: Tennessee doesn't allow confessions of judgment in its state courts. Period. But MCA funders routinely try to file COJs in New York, where many are headquartered. The 2019 CPLR §3218 reform banned NY courts from enforcing COJs against out-of-state defendants — which protects you.
Strategy 1: Challenge the COJ in court. If a COJ was filed against your Tennessee business in New York after August 2019, it's likely voidable. Even for COJs filed before the reform, they can be challenged on grounds of improper execution, missing notarization, lack of signed affidavit, or due process violations. Your attorney files an Order to Show Cause to stay enforcement and argues the COJ is unenforceable.
Strategy 2: Negotiate post-default. Lenders always prefer repayment over litigation. Litigation is expensive — and the lender knows that even if they win, you could file for bankruptcy in one of Tennessee's three federal districts and they get nothing. Use that as a weapon. Offer a lump-sum settlement — 30–50% of the balance — from refinancing or asset liquidation.
You took a second MCA to pay the first. Now the daily payments eat 30% of your revenue. Under UCC § 9-607, lenders can stack UCC-1 liens on receivables filed with the Tennessee Secretary of State — which makes it impossible to get new financing of any kind. For Tennessee's hospitality businesses that depend on seasonal tourism revenue, this is a death spiral.
Strategy 1: Consolidate via Ch. 11 or state law. Chapter 11 filed in the Eastern, Middle, or Western District of Tennessee lets you pause collections and reclassify MCAs as unsecured debt. Courts have allowed businesses to discharge MCA obligations by arguing they were disguised loans. Tennessee's 24% usury cap under Tenn. Code Ann. §47-14-103 gives you an additional defense argument — if the MCA is reclassified as a loan, the effective APR almost certainly exceeds the statutory limit.
Strategy 2: Use your cash flow reality as a weapon. Provide lenders with 6 months of bank statements showing unsustainable withdrawals. Paint a clear picture: settle now, or risk getting $0.00 when the business collapses.
Here's what nobody tells you: lenders assume you're lying about your finances. Every single time. That's why you need a firm that knows how to present the evidence in a way funders can't ignore — a combination of facts and relationships. If you're running a deficit, this is the first real move toward getting out.
Let's talk numbers. MCA contracts routinely mask APRs exceeding 100%. Tennessee caps interest at 24% per annum under Tenn. Code Ann. §47-14-103, and New York courts are increasingly reclassifying MCAs as loans, triggering usury penalties under NY Gen. Oblig. Law § 5-501. The NY Attorney General’s $1 billion judgment against Yellowstone Capital — voiding $534 million in outstanding MCA balances across 18,000+ businesses including Tennessee — showed exactly how exposed funders are right now.
Strategy 1: Usury as a defense. Do the math. A $50K advance at a 1.4 factor rate costs $70K over 6 months — that's roughly 150% APR. Both Tennessee's 24% cap and New York's 25% criminal usury threshold are far exceeded. Cross that line and the funder forfeits the right to recover both principal and interest. Discovery is key: subpoena the lender's underwriting docs. If they used credit scores or fixed repayment terms, courts may deem it a loan.
Strategy 2: Sue for unconscionability. Tennessee courts recognize unconscionability as a defense to contract enforcement. A 200% APR imposed on a struggling restaurant on Broadway in Nashville can be challenged as procedurally and substantively unconscionable — especially when the borrower was in financial distress at signing.
Here's why this matters: most MCA funders sit in New York. Nearly all MCA contracts designate New York courts as the governing jurisdiction. That means a business owner in Nashville, Memphis, or Chattanooga is fighting under the same legal rules as a business owner in Manhattan.
Here’s why that actually works in your favor. Tennessee's 24% usury cap provides some protection, but New York's dual usury framework is even more powerful: civil interest is capped at 16% annually, and any effective rate above 25% is criminal usury. Cross that line and the contract is void as a matter of law — the funder forfeits the right to recover both principal and interest. Recent appellate decisions have increasingly classified MCAs with fixed daily payments and no genuine reconciliation provision as loans subject to these caps.
The CFPB has separately classified merchant cash advances as “credit” under the Equal Credit Opportunity Act — another signal that these products are functionally loans regardless of how the contract labels them. That gives MCA defense attorneys one more argument in their arsenal.
The difference between a good MCA defense attorney and a bad one is the difference between settling your $200K in debt for $80K and losing your business. Three questions matter:
1. Do they actually do MCA defense? Not consumer debt. Not medical debt. MCA debt. Ask how many COJs they've challenged, how many usury defenses they've raised, and what their average settlement percentage is. If they can't answer with specifics, keep looking.
2. Are real attorneys involved? Settlement negotiation alone is not MCA defense. You need licensed Tennessee attorneys who file motions to vacate COJs, challenge UCC liens in court, subpoena funder underwriting documents, and draft enforceable settlement agreements. Ask whether attorneys are involved in every case or only brought in for escalations.
3. What's the fee structure? Legitimate MCA defense firms charge 18–25% of the enrolled debt amount, collected only after delivering results. Any firm that charges upfront fees before settling your debt is violating FTC guidelines — walk away. For a single MCA, top firms resolve cases in 2–8 weeks. For stacked MCAs, expect 3–6 months.
Of these three firms, only Delancey Street does real, attorney-coordinated MCA defense — COJ challenges, usury defenses, UCC lien disputes. The other two handle broader categories of business debt and may be right depending on your situation.
The only firm on this list that does real MCA defense: COJ challenges, usury defenses, UCC lien disputes, emergency motions to unfreeze bank accounts — all coordinated through a nationwide network of licensed attorneys. Delancey Street is not a law firm, but their attorney-coordinated model gives you the legal firepower of one combined with the settlement expertise of a dedicated debt resolution company. Over $100M settled. No upfront fees. All 50 states including Tennessee.
Not an MCA defense specialist — and they'll tell you that straight up. National Debt Relief handles general unsecured business debt — credit cards, vendor accounts, lines of credit. No COJ challenges, no usury defenses, no legal motions. If your Tennessee debt is traditional unsecured debt and not MCAs, they're a proven option with massive scale.
Not an MCA defense specialist either. CuraDebt handles business debt and IRS/state tax resolution. No COJ challenges, no usury defenses. If your Tennessee business also has tax obligations, they can handle that side while a firm like Delancey Street handles the MCA fight.
We get it. COJ filed against you. Bank account frozen. Daily ACH debits destroying your cash flow. Delancey Street's attorney network fights MCA funders with usury defenses, COJ challenges, and settlement negotiation. Over $100M settled. This is what we do.
Call for a Free ConsultationThis 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.
The rankings and evaluations presented reflect the independent editorial judgment of our review team based on publicly available information. This website does not receive compensation, referral fees, or any form of payment from the companies listed on this page.
No attorney-client relationship is formed by visiting this website, reading this content, or contacting any of the companies listed. Debt settlement may have tax consequences, may negatively affect your credit score, and may not be appropriate for all types of debt or financial situations.
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.
Attorney Advertising. This page may be considered attorney advertising in some jurisdictions.