Indiana Merchant Cash Advance Legal Help – Attorneys, Debt Settlement
Merchant cash advances can seem like an easy way for small businesses to access capital quickly. However, the terms are often predatory and can leave business owners trapped in debt. If you took out a merchant cash advance in Indiana and are struggling with repayment, there may be legal options to help.
How Merchant Cash Advances Work
A merchant cash advance provides a business with a lump sum of capital in exchange for a percentage of future credit card sales. There’s usually no fixed repayment schedule – instead, the lender takes a set percentage of daily credit card receipts until the advance has been repaid in full, plus fees and interest that can amount to over 90% APR.This structure means that if your business has a slow period, you still owe the lender their daily cut of credit card sales. You’re on the hook to repay far more than you borrowed. Many businesses end up unable to keep up with payments, damaging their credit and putting them at risk of bankruptcy.
Your Legal Rights and Defenses
If you’re struggling with merchant cash advance debt in Indiana, don’t panic. You have rights under state and federal law. An experienced business debt relief attorney can help you understand all your options, including:Usury defenses – Merchant cash advances typically charge interest rates over 60%, sometimes exceeding 90% APR when all fees are included. Under Indiana law, interest rates over 72% are considered criminal loansharking. An attorney can help you fight repayment under usury laws.Unfair and deceptive practices – Lenders often misrepresent terms like costs, repayment amounts, daily repayment rates, and more. This may make the agreement void or dischargeable in bankruptcy.Bankruptcy – Filing Chapter 7 or Chapter 11 bankruptcy stops collections and discharges outstanding debts. This gives you a fresh start without the burden of merchant cash advance payments.Debt negotiation – Your attorney can negotiate with lenders for a lump sum settlement, reduced balance repayment plans, or other relief. Creditors often agree to settle because they’d rather have a portion of the debt repaid than risk nonpayment through bankruptcy.
Finding the Right Attorney
The business attorneys at Avvo have experience helping Indiana small business owners escape predatory merchant cash advance debt through bankruptcy, debt settlement, contract disputes, and more.When comparing law firms, look for an attorney that:
- Focuses specifically on business debt relief, financial restructuring, and creditor negotiations
- Has represented clients in your industry and situation
- Offers flat fee pricing for bankruptcy and debt settlement, avoiding surprise hourly bills
What to Expect During the Legal Process
Here’s an overview of what typically happens when you work with a lawyer to resolve merchant cash advance debt:
- Initial consultation – Explain your situation in a free meeting or phone call. The attorney assesses possible defenses and legal strategies.
- Case review – If you want to move forward, the lawyer thoroughly reviews your merchant agreements, credit report, finances, and business operations to build your case.
- Strategy development – Your attorney presents a detailed plan with estimated costs, recommended next steps, and projected outcomes. This may involve negotiation, litigation, bankruptcy, or a combination.
- Execution – The attorney handles all aspects of implementing the strategy, communicating with creditors, filing legal petitions, and ensuring the best possible result.
- Resolution – Within a few months in most cases, your debts are discharged, settled, or restructured on affordable repayment terms so your business can move forward.
Having an experienced lawyer on your side levels the playing field when dealing with aggressive merchant cash advance creditors. You’ll understand all available legal remedies for finding relief.
Don’t Face Predatory Lenders Alone
If an Indiana merchant cash advance is pushing your small business to the financial brink, know that you have options. Connect with a skilled business debt relief attorney to discuss your rights. Legal strategies like bankruptcy, contract disputes and debt settlement can stop collections harassment and give you a path out of debt.