Should You Work With an Attorney?

Please note - Corporate Debt Advisors is not a law firm, and simply not lawyers. The information provided on this website is not being offered as legal advice or suggestion, and for more thorough legal information an attorney should be consulted. The legal information on our website is provided without any representations or warranties, express or implied.


 

Given the prevalence of confessions of judgment in the merchant cash advance industry, the answer is yes.


Are you in breach/default?

You really should work with experienced counsel. On the other hand, if you have already breached or defaulted, the answer is almost certainly yes. Why? Because, more than likely, your creditor has a Confession of Judgment (COJ), as these are a standard feature of an MCA agreement (see here for a full explanation of COJs). Generally, COJs enjoy the full faith and credit of other states and are immediately enforceable, though they may need to be domesticated (see here).


Can you negotiate a settlement on your own?

You can always attempt to negotiate with a lender on your own or with a debt settlement company that doesn’t use lawyers, but your negotiating strategy is generally limited to ‘I can’t afford it”, or “I will just declare bankruptcy.”  However, since most creditors have provided a personal guarantee, there is often a lot of collateral exposed and bankruptcy is not a great outcome.


Our Approach

Be ready to respond promptly and with authority. When it comes to a true settlement process, working with effective counsel is the fastest and surest way to an economic settlement.  We are not lawyers and do not provide legal advice, but we do have an extensive network of MCA lawyer, all of whom have direct experience in your state and are prepared to negotiate, respond to motions, file counter claims, and in some states, sue your lender.

Lawyers in our network know the following:

– The standard playbook MCA firms use while pursuing defaulting clients

– Defending against a confession of judgment

– State-by-state laws regarding Confessions of Judgement

– State-by-State usury laws as well as relevant court decisions by state

– State-by-state laws on domesticating claims

Should You Work With an Attorney?

Given the prevalence of confessions of judgment in the merchant cash advance industry, the answer is yes.


Are you in breach/default?

You really should work with experienced counsel. On the other hand, if you have already breached or defaulted, the answer is almost certainly yes. Why? Because, more than likely, your creditor has a Confession of Judgment (COJ), as these are a standard feature of an MCA agreement (see here for a full explanation of COJs). Generally, COJs enjoy the full faith and credit of other states and are immediately enforceable, though they may need to be domesticated (see here).


Can you negotiate a settlement on your own?

You can always attempt to negotiate with a lender on your own or with a debt settlement company that doesn’t use lawyers, but your negotiating strategy is generally limited to ‘I can’t afford it”, or “I will just declare bankruptcy.”  However, since most creditors have provided a personal guarantee, there is often a lot of collateral exposed and bankruptcy is not a great outcome.


Our Approach

Be ready to respond promptly and with authority. When it comes to a true settlement process, working with effective counsel is the fastest and surest way to an economic settlement.  We are not lawyers and do not provide legal advice, but we do have an extensive network of MCA lawyer, all of whom have direct experience in your state and are prepared to negotiate, respond to motions, file counter claims, and in some states, sue your lender.

Lawyers in our network know the following:

– The standard playbook MCA firms use while pursuing defaulting clients

– Defending against a confession of judgment

– State-by-state laws regarding Confessions of Judgement

– State-by-State usury laws as well as relevant court decisions by state

– State-by-state laws on domesticating claims

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