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New Jersey business owners searching for ‘MCA defense lawyers’ need firms that understand confessions of judgment, UCC-1 liens, personal guarantees, and daily ACH debits — and know how to dismantle them under both New York law (which governs most MCA contracts) and New Jersey law (which allows COJs but provides powerful consumer fraud protections under N.J.S.A. 56:8-1). Here are the three best options in 2026.
Let's be clear — Delancey Street is not a law firm. They're a specialized MCA debt settlement operation working with a nationwide network of licensed attorneys. Their network is built around New York’s dual usury framework and the evolving case law reclassifying MCAs as loans.
For New Jersey business owners, Delancey Street’s attorneys face a unique challenge: New Jersey allows confessions of judgment, meaning lenders can obtain judgments in New Jersey courts without notice. The defense strategy combines COJ vacatur motions in New Jersey Superior Court with usury challenges under both N.J.S.A. 2C:21-19 (30% criminal cap) and New York’s 25% criminal threshold. The New Jersey Consumer Fraud Act (N.J.S.A. 56:8-1 et seq.) provides treble damages and attorney fees without requiring proof of intent — a powerful settlement lever. The New Jersey Division of Consumer Affairs provides regulatory oversight. Over $100M settled. No upfront fees.
Not an MCA defense specialist. Handles general unsecured business debts but does not challenge COJs, file usury defenses, or dispute UCC liens.
Not an MCA defense specialist. If your New Jersey situation involves both MCA debt and tax obligations — including New Jersey Division of Taxation or IRS issues — CuraDebt can address the tax side while Delancey Street handles MCA defense.
You're not dealing with regular business debt. This is a different battle entirely. MCA defense is an elite subset of business debt law — built to protect business owners from confessions of judgment, UCC Article 9 liens, personal guarantee enforcement, and aggressive daily ACH withdrawals that bleed your account dry. General debt settlement won't cut it here.
Here's what makes New Jersey especially dangerous. The state is one of only a few (along with Missouri and Pennsylvania) that still allows confessions of judgment — meaning an MCA funder can obtain a judgment against your Newark, Jersey City, or Paterson business without filing a lawsuit, without serving you notice, and without a hearing. N.J.S.A. 2C:21-19 sets criminal usury at 30%, which is higher than New York’s 25% cap. But typical MCA rates of 150%+ APR blow past both thresholds. On the defensive side, the New Jersey Consumer Fraud Act (N.J.S.A. 56:8-1 et seq.) is among the most powerful in the country: it provides treble damages, attorney fees, and does not require proof of intent — only that an unconscionable commercial practice occurred.
You're scared. We get it. The moment your New Jersey business misses a payment, the clock starts ticking. Defaulting on an MCA is governed by UCC Article 9 provisions. Because New Jersey allows COJs, lenders can move faster here than in states that prohibit them. The consequences are immediate: frozen bank accounts, liens filed with the New Jersey Division of Revenue, judgments entered in New Jersey Superior Court, or asset seizures.
New Jersey allows confessions of judgment — making this the highest-risk scenario for Garden State business owners. An MCA funder can present the COJ to a New Jersey Superior Court clerk and obtain a judgment without filing a complaint, serving process, or conducting a hearing. The judgment becomes immediately enforceable: bank account levies, wage garnishments, and property liens.
Here's how we fight back — vacatur motions based on fraud, unconscionability, or lack of consideration. We challenge the COJ’s compliance with New Jersey court rules. And we use the New Jersey Consumer Fraud Act as a weapon. If the COJ was filed in New York instead of New Jersey, the 2019 CPLR §3218 reform blocks enforcement against out-of-state defendants.
Under UCC § 9-607, lenders file UCC-1 liens with the New Jersey Division of Revenue, blocking new financing. New Jersey’s dense small business economy — particularly in Newark, Jersey City, Paterson, and the Shore communities — makes MCA stacking common. Chapter 11 in the U.S. Bankruptcy Court for the District of New Jersey can pause collections. The New Jersey Consumer Fraud Act — with its treble damages and no-intent requirement — gives your attorney a devastating weapon to fight predatory MCA terms without bankruptcy.
N.J.S.A. 2C:21-19 sets criminal usury at 30% per year — higher than New York’s 25%. Civil usury is governed by N.J.S.A. 31:1-1, which sets 6% as the default rate. A $50K advance at a 1.4 factor rate produces ~150% APR, five times the criminal cap. Under New York law (which governs most MCA contracts), any rate above 25% is criminal usury. Either way, the contract is void.
The NY AG’s $1.065 billion Yellowstone Capital judgment canceled $534 million in MCA debt nationwide, including for New Jersey businesses. The New Jersey Attorney General’s Division of Consumer Affairs has also increased scrutiny of predatory commercial lending practices.
Whether your business is in Newark, Jersey City, Paterson, or Trenton, your MCA contract almost certainly designates New York law. New York’s dual usury framework (16% civil, 25% criminal) is actually more favorable to defendants than New Jersey’s 30% criminal cap. The proximity between New Jersey and New York means many MCA funders are based across the Hudson River, and New Jersey businesses are disproportionately targeted. The CFPB’s classification of MCAs as “credit” strengthens the loan reclassification argument.
Criminal Usury (30%): N.J.S.A. 2C:21-19 caps interest at 30% per year. Higher than New York’s 25%, but still far below typical MCA rates.
Civil Usury (6%): N.J.S.A. 31:1-1 sets 6% as the default civil interest rate absent a written agreement.
COJ Authorization: New Jersey allows confessions of judgment — one of only a handful of states. That's what makes New Jersey one of the most dangerous states for MCA defaults — and why you need an attorney who knows how to fight on both fronts.
New Jersey Consumer Fraud Act (N.J.S.A. 56:8-1 et seq.): One of the strongest consumer protection statutes in the nation. Provides treble damages, attorney fees, and does not require proof of intent. Applies to commercial transactions including MCAs.
New Jersey Division of Consumer Affairs: Oversees consumer protection enforcement and accepts complaints about predatory lending practices.
New Jersey Department of Banking and Insurance: Regulates financial institutions and lending activity in the state.
Not all attorneys are built for this fight. Here's what to ask.
1. MCA-specific experience. Ask about COJ vacatur motions in New Jersey Superior Court, usury defenses, and settlement percentages. New Jersey’s COJ authorization means the attorney must know how to vacate judgments already entered.
2. Attorney involvement. Need attorneys who file motions, challenge UCC liens with the New Jersey Division of Revenue, and draft settlement agreements. Verify credentials through the New Jersey State Bar Association.
3. Fee structure. 18–25% of enrolled debt, after results. No upfront fees.
Only Delancey Street offers true MCA defense with attorney-coordinated COJ challenges, usury defenses, and UCC lien disputes.
The only firm providing true MCA defense: COJ challenges, usury defenses, UCC lien disputes, emergency motions. Over $100M settled. No upfront fees. All 50 states.
Not an MCA defense specialist. Handles general unsecured business debt.
Not an MCA defense specialist. Best for combined business debt and New Jersey Division of Taxation or IRS tax resolution.
COJ filed against you? Bank account frozen? Delancey Street’s attorney network fights MCA funders with usury defenses, COJ challenges, and settlement negotiation. Over $100M settled.
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Delancey Street is not a law firm. Delancey Street works with a nationwide network of attorneys. Any attorney services are provided by independent, licensed attorneys within the Delancey Street network.
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