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When an MCA goes into default, everything accelerates. The funder does not send you a polite letter. They freeze your bank account, file a COJ, and start collecting — sometimes within 48 hours. The firms below specialize in stopping that process and getting you to a settlement. Your search ends here.
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 file emergency motions to stop bank freezes, challenge confessions of judgment, raise usury defenses, and negotiate settlements with MCA funders. Their attorney network handles cases in every state, with particular depth in New York courts where most COJs are filed.
Here is how a typical MCA default case works with Delancey Street. Day one: you call, they review your MCA agreements and identify every defense available — usury, failure to reconcile, COJ defects, unconscionability. Day two: their attorneys send formal ACH revocation letters to your bank and cease-and-desist notices to the funder. If a COJ has been filed, they move to vacate under CPLR §3218. Within 2–6 months, the case settles — typically at 30–60% of the outstanding balance. That is the playbook. It works.
Important: National Debt Relief is better known for consumer debt but does handle some business debt situations. They are the largest debt settlement company in the United States — A+ Better Business Bureau rating, over $100M resolved. They do not file court motions, challenge COJs, or handle MCA-specific litigation. But if you carry credit cards, vendor debt, or lines of credit alongside the MCA, they can address those obligations after the MCA situation is stabilized.
Important: CuraDebt is not a law firm and does not handle MCA-specific defenses like COJ challenges or usury arguments. They are a debt settlement and tax resolution firm with 25+ years of experience and IAPDA certification. Where they fit in: if your MCA default has created tax complications — missed payroll tax deposits, IRS penalties, state tax liens — CuraDebt can address the tax side while Delancey Street handles the MCA defense.
Default does not happen quietly. MCA funders are not banks. They do not send 30-day notices and wait politely. Here is the typical timeline — and it moves fast.
Days 1–3: ACH Withdrawal Failures. The funder’s daily or weekly ACH debit bounces. They know immediately. Most MCA contracts define default as a single missed payment. Some define it as a returned ACH. Either way — the clock starts now.
Days 3–7: Acceleration and Demand. The funder sends a default notice demanding the full remaining balance — not the remaining purchase amount, but the full undiscounted balance including all remaining factor rate charges. Under the MCA agreement, the entire amount becomes due immediately. This is where factor rates of 1.3–1.5 turn a $100,000 advance into $130,000–$150,000 owed.
Days 7–14: Bank Account Freeze. If a confession of judgment was signed, the funder files it with a New York county clerk and obtains a judgment. They then issue a restraining notice to your bank under CPLR §5222. Your account is frozen. Payroll bounces. Vendor payments fail. Operations grind to a halt.
Days 14–30: UCC Lien Enforcement. The funder perfects its UCC-1 lien on your business assets — receivables, equipment, inventory. They may also file a lawsuit in New York Supreme Court or your local jurisdiction. If you had a personal guarantee, they come after your personal assets too.
A specialized MCA settlement firm does not just negotiate. They build a legal defense that forces the funder to the table. Here is what that looks like.
Step 1: ACH Revocation. Your attorney sends a formal revocation of ACH authorization to your bank. Under NACHA rules governing ACH transactions, you have the right to revoke any ACH debit authorization at any time by notifying your bank. The funder cannot override this. The daily drain stops.
Step 2: Legal Analysis. The attorney reviews every MCA agreement you signed. They identify defenses: Was the MCA really a purchase of future receivables, or was it structured as a loan with a fixed repayment regardless of revenue? If the latter, it may violate state usury laws. Did the funder ever reconcile payments based on actual receivables? Most do not — and that failure undermines the entire “purchase” characterization.
Step 3: COJ Challenge. If a confession of judgment was filed, the attorney moves to vacate under CPLR §3218. If your business is outside New York, the COJ is automatically voidable. Even in-state businesses can challenge COJs for procedural defects — wrong amount, missing affidavit, fraud.
Step 4: Settlement Negotiation. With legal defenses on the table and court filings creating real risk for the funder, the settlement firm negotiates. Typical MCA settlements resolve at 30–60% of the outstanding balance. Some resolve for less. The funder would rather take a guaranteed payment now than litigate for months with uncertain results.
Every case is different. But here is what a typical defense engagement looks like from start to finish.
Week 1: Initial consultation, review of MCA agreements, ACH revocation, cease-and-desist letters to funders. If a bank account is frozen, emergency motion filed to release funds.
Weeks 2–4: Legal defenses identified and documented. COJ challenges filed if applicable. Settlement demand letters sent to each funder with legal arguments attached. Funders review and respond.
Months 2–4: Active settlement negotiations. Funders make counteroffers. Your attorney pushes back using the legal defenses as pressure. If a funder files a lawsuit, the attorney answers and raises affirmative defenses — usury, unconscionability, failure to reconcile.
Months 4–9: Settlements finalized. Payment plans arranged. UCC liens terminated. COJ judgments vacated. You resume normal operations. That is the endgame.
Here are the three top-rated firms for MCA default defense and settlement. Only one — Delancey Street — provides attorney-coordinated MCA-specific defense with COJ challenges, usury arguments, and settlement at 30–60%. The other two handle broader debt categories.
The only firm on this list that provides MCA-specific defense — COJ challenges, usury defenses, ACH revocation, bank account unfreezing, and settlement at 30–60%. Not a law firm, but their attorney network delivers results when your business is on the line. Over $100M settled. No upfront fees. All 50 states.
Not an MCA defense specialist. National Debt Relief handles general unsecured business debt — no court filings, no COJ challenges, no emergency motions. But if you have traditional unsecured debt alongside your MCA, they can address those after the MCA crisis is resolved.
Not an MCA defense specialist. CuraDebt handles business debt and IRS/state tax resolution. Where they fit: if your MCA default created tax problems — missed payroll deposits, IRS penalties — CuraDebt can address the tax side while Delancey Street handles the MCA defense.
The funder is moving fast. You need to move faster. Delancey Street’s attorney network stops bank freezes, challenges COJs, and settles MCA debt at 30–60%. 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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