If you cannot afford Merchant Cash Advance payments, there are options available to you. You may either file for a Chapter 11 bankruptcy, enter into debt settlement or change the terms of your Merchant Cash Advance agreement.
Filing a Chapter 11 bankruptcy may be an effective solution if you cannot afford your Merchant Cash Advance payments. It is an opportunity that business owners use to reorganize their finances while being protected by the Court. A Chapter 11 is suited mostly for those businesses that are experiencing temporary financial problems and can demonstrate the ability to regain profitability once their debt has been restructured. An attractive feature of a Chapter 11 bankruptcy is that creditors are prohibited from engaging in any debt collection activities. Furthermore, the business can still operate its day-to-day functions while under a Chapter 11 bankruptcy. In many cases, business owners may opt to engage in alternate debt relief strategies based on their specific circumstances.
One of the alternatives to filing a Chapter 11 bankruptcy if you cannot afford your Merchant Cash Advance is debt settlement. During this process, you propose a lump sum payment to settle the debt usually at reduced amount depending on what you can afford. During such negotiations, the legal counsel of an experienced business debt relief lawyer is very valuable. Many creditors may agree to a debt settlement proposition as they have a chance of recovering some funds compared to a bankruptcy proceeding. To qualify for a debt settlement deal, the business must be able to demonstrate that it is in fact experiencing financial hardship. In addition, the business has to have sufficient funds to settle the debt. In cases where businesses are ineligible to settle their Merchant Cash Advances, debt negotiation may help.
Debt negotiation, if done effectively, may alter the terms of your Merchant Cash Advance agreement. If you cannot afford Merchant Cash Advance payments, you may re-negotiate certain terms of your contract such as a lower interest rate as well as the daily payment amount. Debt negotiations are a serious legal undertaking, one that should be handled with the help of an experienced debt relief attorney.
The attorneys at ZocLaw.com have provided premier legal counsel to many businesses that are experiencing financial problems due to large amounts of Merchant Cash Advance. If you cannot afford your Merchant Cash Advance obligations, schedule your free consultation with one of our lawyers to discuss your options.