MCA Debt Relief
A merchant cash advance takes a cut of your sales every business day, and the payback never shrinks with your revenue. Bankruptcy can stop the pulls at once and clear the debt.
Stop the daily pulls
Philadelphia & South Jersey
Business Debt Relief Lawyer
Business debt relief means dealing with what your business owes using tools that have legal teeth, not just promises. That can mean negotiating directly with creditors, reorganizing under Subchapter V while the business stays open, or filing personal bankruptcy when a personal guarantee puts the debt on you. A lawyer can use tools a settlement company can't, like the automatic stay and discharge.
Relief with legal teeth
Search for business debt relief and most of what comes back is settlement companies. Their model is simple: you stop paying your creditors, you send money to them instead, and they try to negotiate. The FTC warns that creditors don't have to negotiate, that you can be sued while you wait, and that fees and late charges can leave you deeper in the hole. A settlement company can't stop a lawsuit, can't lift a UCC lien (a creditor's public claim on your business assets), and can't discharge anything. Bankruptcy and lawyer-led negotiation can. The right tool depends on two questions: should the business survive, and whose name is really on the debt.
Where the pressure comes from
- Daily merchant cash advance withdrawals are draining your account
- An SBA or EIDL loan is in default and the demand letters have started
- A creditor sued the business, or sued you on a personal guarantee
- A settlement company told you to stop paying and let them handle it
- The business can't cover payroll and the debt at the same time
What a lawyer can actually do
- Reorganize under Subchapter V so the business stays open
- Clear personally guaranteed debt through a personal Chapter 7 or 13
- Negotiate workouts directly with creditors, with filing as leverage
- Stop lawsuits and collection with the automatic stay the day we file
- Wind the business down in an orderly way instead of a pile-on
Types of business debt
SBA Loan Default
Defaulting on an SBA loan starts a set process: lender collection, an SBA demand letter with a 60-day window, then Treasury. Bankruptcy can end it, and the guarantee is generally dischargeable.
Handle an SBA defaultEIDL Loan Default
There's no EIDL forgiveness program, and defaulted COVID EIDLs now sit with Treasury collections. Bankruptcy can discharge the loan and stop garnishment the day you file.
Deal with your EIDLClosing a Business
You can close a business that owes money. What matters is which debts follow you personally, and your own Chapter 7 or 13 can clear the guarantees that do.
Plan your exitCommon questions about Business Debt Relief
Should I use a debt settlement company for my business debt?
We'd be careful. The typical program has you stop paying creditors and send money to the company instead while it tries to negotiate. The FTC warns that creditors don't have to agree, that you can still be sued while you wait, and that fees, late charges, and interest can leave you owing more than when you started. A settlement company also can't stop a lawsuit, remove a UCC lien, or discharge a debt. Those take legal tools. A lawyer can negotiate too, and can back the negotiation up with options a settlement company doesn't have.
Can a business file bankruptcy and stay open?
Yes, often. Chapter 11 Subchapter V is a streamlined reorganization built for small businesses. You keep running the company as the debtor in possession while the debt is restructured under a court-approved plan. Whether it fits depends on your debt level and whether the business can support a realistic plan, which is exactly what we look at together in the free consultation.
Am I personally liable for my business's debt?
Often, yes, and this question usually decides the strategy. Most small-business loans, leases, and merchant cash advances include a personal guarantee, and sole proprietors are personally on the hook automatically. When the real exposure is personal, a personal Chapter 7 or Chapter 13 can be the cleanest path, because it deals with the guarantee itself, not just the company's books.
What does the automatic stay stop for a business?
The moment a bankruptcy case is filed, the automatic stay freezes collection: lawsuits, judgment enforcement, bank levies, most repossessions, and the calls. In a Subchapter V case it also stops creditors from picking the business apart while a plan comes together. And it has teeth. We recovered $20,000 for a client after an automatic-stay violation, In re Minarik, Bankr. E.D. Pa. (2025).
How much does business debt relief cost?
It depends on the path, so we won't pretend there's one number. Our fees are affordable, and we offer payment plans. The consultation is free, by phone or Zoom anywhere in Pennsylvania or New Jersey, and you'll leave it knowing your realistic options and what each would cost before you commit to anything.
Can you just negotiate with my creditors?
Yes, and sometimes that's the whole engagement. A lawyer-led workout is often faster and cheaper than any filing. The difference is leverage: creditors negotiate differently with someone who can actually file the case, and Mike has represented creditors too, so he knows how they value a claim. When a creditor crosses the line, we push back. We obtained Rule 9011 sanctions against a creditor in In re Heasley, Bankr. E.D. Pa. (2025). And if negotiation stalls, we don't start over. We escalate.