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If you're a Vermont 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. Vermont's 12% usury cap (9 V.S.A. §41a) and prohibition on confessions of judgment give you real state-level protection, but the deepest defense power comes from New York law expertise. 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 Burlington, Montpelier, Rutland, or Brattleboro. This is what they do.
Their attorneys file motions to vacate confessions of judgment, raise criminal usury defenses when effective APRs exceed 25%, dispute overbroad UCC-1 filings with the Vermont Secretary of State, and use the NY Attorney General’s $1 billion Yellowstone Capital settlement as precedent. Over $100M settled. No upfront fees.
Not an MCA defense specialist — and they'll tell you that straight up. 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 Vermont business debt is traditional unsecured debt, they're a proven option.
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 Vermont situation involves both MCA debt and tax obligations, CuraDebt can handle the tax side while a firm like Delancey Street handles the MCA defense.
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.
Vermont offers important state-level protections. The state caps interest at 12% per annum under 9 V.S.A. §41a — one of the lowest caps in the nation — and does not permit confessions of judgment. The Vermont Consumer Protection Act (9 V.S.A. Chapter 63) provides additional use against predatory lending practices. But MCA funders structure their products as purchases of future receivables to avoid usury caps, and most contracts designate New York as the governing jurisdiction.
The agreement you signed is written entirely in the lender's favor — we have yet to see a single MCA contract that is fair. That's why you need an attorney who knows how to attack the contract from the outside: usury challenges under both Vermont 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 Vermont Secretary of State. Maybe personal assets get seized if you signed a guarantee. Defaulting on an MCA is governed by UCC Article 9 provisions, and it moves on a completely different timeline than traditional debt.
Vermont's tourism-dependent businesses, ski resorts, craft breweries, and farm operations are especially vulnerable — seasonal revenue patterns make fixed daily MCA payments unsustainable during off-peak months. You need a defense attorney before the funder takes everything off the table.
Good news first: Vermont doesn't allow confessions of judgment. Period. But MCA funders routinely include COJ provisions and file them in New York. The 2019 CPLR §3218 reform banned NY courts from enforcing COJs against out-of-state defendants — which gives you double protection.
Strategy 1: Challenge the COJ in court. You have dual protection: COJs aren't enforceable in Vermont courts, and New York's 2019 reform bars COJ enforcement against out-of-state defendants. If a funder filed a COJ after August 2019, it's voidable.
Strategy 2: Negotiate post-default. Lenders prefer repayment over litigation. Use that. 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 Vermont Secretary of State — which makes it impossible to get new financing of any kind.
Strategy 1: Consolidate via Ch. 11. Chapter 11 filed in the U.S. Bankruptcy Court for the District of Vermont lets you pause collections and reclassify MCAs as unsecured debt. Vermont's 12% usury cap gives you an additional argument for reclassification.
Strategy 2: Use your cash flow reality as a weapon. Provide lenders with bank statements showing unsustainable withdrawals. Vermont's seasonal businesses are well-positioned to demonstrate revenue volatility. Paint a clear picture: settle now, or risk getting $0.00.
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.
Let's talk numbers. MCA contracts routinely mask APRs exceeding 100%. Vermont caps interest at 12% per annum under 9 V.S.A. §41a, and New York's criminal usury threshold is 25%. Both are far exceeded by typical MCA effective rates. The NY AG's $1 billion judgment against Yellowstone Capital 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 Vermont's 12% cap and New York's 25% criminal usury threshold are far exceeded. The contract may be void under either jurisdiction.
Strategy 2: Sue for unconscionability. Vermont courts recognize unconscionability. A 200% APR on a struggling Stowe ski lodge or Burlington restaurant can be challenged as substantively unconscionable.
Here's why this matters: most MCA funders sit in New York. Nearly all contracts designate New York as the governing jurisdiction.
Vermont's 12% usury cap (9 V.S.A. §41a) gives you strong state-level protection. New York's dual usury framework adds more: civil interest capped at 16% and criminal usury at 25%. Cross that line and the contract is void — the funder forfeits both principal and interest. For Vermont business owners, both state and NY law give you powerful defense weapons.
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.
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? Ask how many COJs they've challenged and what their average settlement percentage is. If they can't answer with specifics, keep looking.
2. Are real attorneys involved? You need attorneys who file motions, challenge UCC liens, and draft enforceable settlement agreements. Verify credentials through the Vermont Bar Association.
3. What's the fee structure? Legitimate firms charge 18–25% of enrolled debt, collected only after results. Any firm charging upfront fees is violating FTC guidelines — walk away.
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 — all through a nationwide attorney network. Over $100M settled. No upfront fees. All 50 states including Vermont.
Not an MCA defense specialist — and they'll tell you that straight up. Handles general unsecured business debt. No COJ challenges, no usury defenses. If your Vermont debt is traditional unsecured debt, they're a proven option.
Not an MCA defense specialist either. Handles business debt and IRS/state tax resolution. If your Vermont 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.
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