The long-term timeline varies based on case complexity, but most restructuring cases are resolved within 30-90 days, however, immediate relief of having current daily or weekly payments reduced to an affordable amount typically is resolved within 7-10 days from engagement.
Results vary significantly based on individual circumstances, but our clients often achieve 15%- 35% reductions in principal balances through settlement negotiations. Payment restructuring can reduce monthly obligations by 40-70% in many cases. We provide realistic expectations during your initial consultation based on your specific situation.
Generally, we favor continued payments being made rather than intentionally defaulting on your obligations. We believe this fosters a negotiable resolution of your debt with the MCAs. In some cases, temporary payment suspension may be necessary or strategic. We provide clear guidance on the best approach for your circumstances and handle all communications with your funders throughout the process.
MCA obligations typically are not reported to personal credit bureaus since they are based on future receivables, not credit. However, if MCAs have been converted to judgments or personal guarantees are involved, there may be credit implications, but even with negotiated lower payments a default does not occur and there is no basis for an MCA to report negatively to a credit agency. We discuss all potential impacts during your consultation and work to minimize any negative effects.
Multiple MCA obligations ("stacking") are typical. We have extensive experience coordinating negotiations with multiple funders simultaneously, often consolidating obligations or negotiating settlements across all accounts to create a single, manageable payment structure. This is where our name comes from and our expertise truly shines. MCASS receives case referrals from MCAs to Merchants, which is the highest form of compliment, since it comes from our adversaries.
Yes, we frequently work with clients facing legal action including UCC filings, Lien Notices, Confessions of Judgment, or lawsuits. While we do not act as your attorney, our legal expertise and experience supports our ability to provide specialized negotiated resolutions even in these challenging situations and work closely with your legal counsel, when necessary, when appropriate.