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You paid them off. They should have released the lien. They did not. Now you need a firm that will make them. The firms below are ranked by their ability to force lien termination — through demand letters, court filings, and damage claims.
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 who handle UCC lien termination demands, court filings to compel release, and damage claims against MCA funders who refuse to comply with their legal obligations. Their attorneys send formal authenticated demands under UCC §9-513, set the 20-day clock running, and if the funder fails to act, pursue court orders and statutory damages under UCC §9-625.
Why do MCA funders drag their feet? Control. As long as that lien sits on your business, you cannot get new financing. You are trapped in their ecosystem. Some funders delay on purpose — hoping you will come crawling back for another advance. Others are simply disorganized or have gone out of business entirely, leaving orphaned liens with no one to call. Delancey Street’s attorney network handles all of it — from demand letters to defunct funders’ registered agents to Secretary of State filings to court orders compelling termination.
Important: National Debt Relief is not a law firm and does not handle UCC lien termination, Secretary of State filings, or legal actions against MCA funders. They are the largest debt settlement company in the United States with an A+ Better Business Bureau rating. If your lien issue is resolved and you carry additional unsecured business debt, National Debt Relief can address credit cards, vendor accounts, and lines of credit.
Important: CuraDebt is not a law firm and does not handle UCC lien termination or legal actions against MCA funders. They are a debt resolution company with over 25 years of experience handling business debt and IRS/state tax resolution. If your unreleased lien situation also involves tax issues, CuraDebt can address the tax side while Delancey Street handles the UCC filing. They are IAPDA certified.
A UCC-1 financing statement is a public document filed with the Secretary of State that declares the MCA funder has a security interest in your business assets. Nearly every MCA agreement grants the funder a security interest in your accounts receivable, inventory, equipment, and general intangibles — essentially everything your business owns.
Why funders file them: The UCC-1 filing establishes priority. Under UCC §9-322, the first creditor to file a financing statement has priority over later creditors. This means if you default, the first-filing MCA funder gets paid before any other creditor. The filing also puts other potential lenders on notice that your assets are encumbered — effectively preventing you from obtaining new financing without the funder’s consent.
Why the lien matters after payoff: Even after you pay off the MCA in full, the UCC-1 remains on the public record until it is terminated by a UCC-3 filing. Anyone searching your business — banks, lenders, potential buyers, business partners — will see the lien and may assume you still owe money or that your assets are encumbered. This is particularly damaging when you apply for SBA loans, bank lines of credit, or equipment financing.
The law is on your side. Once you have paid off the obligation, the funder must terminate the filing. No ifs, ands, or buts. Here is exactly what the law says:
UCC §9-513: Mandatory Termination. Under §9-513, a secured party must file a termination statement within 20 days after receiving an authenticated demand from the debtor if there is no outstanding obligation and no commitment to extend credit. “Authenticated demand” means a written request signed by the debtor (or their attorney) demanding that the filing be terminated.
UCC §9-625: Damages for Noncompliance. If the secured party fails to comply with §9-513, the debtor can recover damages under §9-625. Recoverable damages include: (a) actual damages suffered because of the unreleased lien (lost financing, higher interest rates, failed business sales), (b) statutory damages of $500 in some jurisdictions, and (c) in cases of willful noncompliance, courts have awarded punitive damages and attorney fees.
State Variations. While the UCC is a uniform law adopted by all 50 states, some states have additional provisions that strengthen debtor protections. For example, some states allow the debtor to file their own termination statement if the secured party fails to act, while others impose additional penalties. Your attorney will apply the specific provisions of your state’s UCC enactment.
This is not complicated. Here is the step-by-step playbook:
Step 1: Confirm Payoff. Gather documentation proving the MCA has been fully paid. This includes bank statements showing all ACH payments, any payoff confirmation from the funder, and the original MCA agreement showing the total repayment amount. If the funder disputes the payoff, your attorney can calculate the total paid using bank records and compare it to the contract terms.
Step 2: Send an Authenticated Demand. Your attorney sends a formal written demand to the MCA funder citing UCC §9-513 and requesting immediate filing of a UCC-3 termination statement. The demand is sent via certified mail with return receipt to create a clear record of when the 20-day clock starts running. The demand includes proof of payoff and a warning that failure to comply will result in legal action and damage claims.
Step 3: Wait 20 Days. The funder has 20 days from receipt of the demand to file the termination statement. Many funders will comply at this stage — the combination of a lawyer’s letterhead and the threat of statutory damages is usually sufficient to prompt action.
Step 4: File a Lawsuit if Necessary. If the funder fails to terminate within 20 days, your attorney files a lawsuit seeking: (a) a court order compelling the funder to file a UCC-3 termination statement, (b) actual damages for all harm caused by the unreleased lien, (c) statutory damages under §9-625, and (d) attorney fees. In many cases, the funder settles quickly once a lawsuit is filed, because the legal exposure far exceeds the cost of simply filing the termination.
Step 5: Alternative: Self-Help Termination. In some states, if the secured party fails to file a termination statement within the required period, the debtor can file an authorization statement or correction statement with the Secretary of State. The specific procedures vary by state, and an attorney familiar with your state’s UCC rules can advise on whether this option is available.
This is not just paperwork. An unreleased UCC lien costs you real money and real opportunities:
Denied Financing. Banks and SBA lenders routinely deny loan applications when they discover existing UCC liens. Even if you explain that the MCA has been paid off, the lender will require a termination statement before approving the loan. This can delay critical financing by weeks or months.
Higher Interest Rates. Some lenders will approve financing despite the lien but charge higher interest rates to account for the perceived risk. Over the life of a loan, this can cost thousands or tens of thousands of dollars — all because an MCA funder failed to file a simple termination statement.
Blocked Business Sales. If you are trying to sell your business, the buyer’s attorney will discover the lien during due diligence. Most buyers will require the lien to be cleared before closing. Some will walk away entirely. The lien can reduce your sale price or prevent the sale altogether.
Damaged Business Credit. UCC filings appear on your Dun & Bradstreet business credit report and other commercial credit databases. An active lien lowers your business credit score and can affect vendor terms, insurance rates, and lease applications.
1. Call an MCA defense attorney. Call (212) 210-1851 to speak with Delancey Street. They will review your payoff documentation, identify the UCC-1 filing, and begin the termination demand process.
2. Search for UCC filings against your business. You can search for UCC filings through your state’s Secretary of State website. Search by your business name and your personal name (if you signed a personal guarantee). Document every active filing, including the filing number, date, secured party name, and collateral description.
3. Gather proof of payoff. Collect all bank statements showing MCA ACH payments, any email or letter confirmations of payoff from the funder, and the original MCA agreement. Your attorney needs this to establish that the obligation has been fully satisfied.
4. Do not negotiate with the funder yourself. Some funders use the unreleased lien to squeeze more money out of you or pressure you into a new MCA. Do not fall for it. Do not agree to anything. Let your attorney handle this through the UCC’s statutory framework. That is what it is there for.
Three firms. One handles the actual UCC termination work — demands, court filings, damage recovery. That is Delancey Street. The other two handle broader categories of business debt.
The only firm on this list that handles UCC lien termination: authenticated demands under §9-513, court filings to compel termination, damage recovery under §9-625, and resolution of defunct funder liens. Not a law firm, but their attorney network delivers expert UCC enforcement. Over $100M settled. No upfront fees. All 50 states.
Not a UCC lien specialist. National Debt Relief handles general unsecured business debt. No UCC filings, no court orders, no damage claims. Best for traditional unsecured debt after the lien is cleared.
Not a UCC lien specialist. CuraDebt handles business debt and IRS/state tax resolution. Best used alongside Delancey Street if you also have tax obligations to resolve.
You paid off the advance. The law requires lien termination within 20 days. Delancey Street’s attorney network sends authenticated demands, files court actions, and recovers damages. Over $100M settled. Free consultation.
Call for Lien Removal HelpThis 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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