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New Orleans Merchant Cash Advance Lawyers Can Provide Debt Relief

Running a small business in New Orleans can be tough, y’all. Between rebuilding after hurricanes, dealing with tourists, and keeping up with regulations, things get chaotic real fast. And when money gets tight, it’s easy to panic.That’s where merchant cash advance lawyers can help. These legal eagles specialize in getting businesses out of debt fast. They know all the laws and loopholes to settle debts and restructure loans. And they assign one main point of contact to personally handle each case.

How Cash Advances Work in New Orleans

A merchant cash advance isn’t really a loan. It’s the business equivalent of getting an advance on your paycheck. Here’s a quick rundown of how it works:

  • A financing company gives the business an upfront lump sum of cash
  • In exchange, the business agrees to pay back a percentage of its credit card sales over time
  • There’s no set repayment schedule – the business pays back more when sales are high and less when they dip

The advantage is getting quick cash without having to qualify for a bank loan. The catch is that the repayment rates are steep – often over 20%. And if the business can’t keep up with payments, things spiral fast.That’s where lawyer groups like Delancey Street come in. Their attorneys specialize in getting small businesses out of merchant cash advance debt.

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4 Ways Lawyers Can Provide Debt Relief

Here are some of the main ways a merchant cash advance lawyer can help:

1. Settling Debts

First, the lawyers try to negotiate a settlement – agreeing to pay back less than the full amount owed. Since financing companies buy business debts for pennies on the dollar, they’re often open to settling.The attorneys start by reviewing all the contracts and payments already made. They look for any flaws in the deals or violations of Louisiana laws capping repayment rates. These give them leverage to push for better terms.For example, in 2021 a judge ruled that some New Orleans cash advance repayment rates were illegally high under the state’s usury laws. So companies are wary of going to court now over settlement offers.

2. Debt Restructuring

If a reasonable settlement can’t be reached, the lawyers look to restructure the debt. This involves creating a new repayment schedule that better matches the business’s cash flow.Often this means switching from daily repayments to weekly or monthly ones. It also can mean lowering the percentage taken from each credit card sale. The goal is to free up operating funds so the business can recover.Debt restructuring works best for businesses with steady sales but poor accounting and financial planning. The new terms let them budget better and keep growing while gradually paying back debts over several years.

3. Chapter 7 or Chapter 11 Bankruptcy

If settlements fail and the business can’t keep up with payments, bankruptcy may be the last option. Chapter 7 bankruptcy liquidates the company to pay off debts. Owners lose the business but get a fresh start.Chapter 11 bankruptcy instead restructures debts under court supervision so the business can stay open. Owners keep running operations under a court-approved plan to catch up on repayments over time.Bankruptcy hurts credit ratings and is emotionally tough on owners. So the lawyers first exhaust all other options. But when owners are in over their heads in debt, it can provide a clean break.

4. Selling the Business

When debts can’t be paid back, owners may opt to simply sell their company. This gives them funds to settle debts before closing up shop for good.While emotionally difficult, selling can maximize the value owners get out of the struggling business. The attorneys help review offers, negotiate deals, and walk owners through the legal steps of business sales.They also can help structure deals to keep the business operating under new ownership. This preserves jobs and the company’s legacy in the community.

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Know Your Rights Under Louisiana Merchant Cash Advance Laws

Merchant cash advance deals seem easy at first. But shady lenders can bury unfair terms in the fine print. As struggles emerge, they are quick to threaten legal action over debts.Don’t let them intimidate you. Louisiana’s consumer protection laws cap repayment rates and restrict collection tactics. Common prohibited practices include:

  • Charging over 36% annual interest
  • Requiring repayment rates over 35% of credit card sales
  • Harassing customers repeatedly over debts
  • Making false or misleading statements while collecting
  • Pretending to be law officers or government agents

You can read more details on Louisiana debt collection laws from the Louisiana Office of Financial Institutions.Their consumer hotline at 800-525-0657 can explain your rights when dealing with aggressive collection calls or lawsuits. They can also file complaints against shady lenders violating state laws.Having professional legal advice levels the playing field when lenders get nasty over debts. The lawyers from Delancey Street have defended dozens of New Orleans small business owners from unfair collection suits.They dig into the contracts to find illegal terms or deceptive sales tactics. In many cases, this leads to debts being wiped out or slashed.

Don’t Face Cash Advance Struggles Alone

Between hurricanes, floods, pandemics, and more – who knows what the next disaster will be here in New Orleans? As a local business owner, you need to focus your energy on keeping operations running.Don’t waste time worrying over debts or arguing with aggressive lenders. Lean on professionals who know the system and laws inside out. They can lift the weight fast while you handle your customers and community.So if that merchant cash advance is dragging you down, don’t wait. Reach out to legal pros like Delancey Street so you can get back to doing what you love – serving the one-of-a-kind people that make the Big Easy like nowhere else. They’ve got your back.

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