Top 3 New York MCA Debt
Relief Lawyers
As the MCA industry's home base, New York presents both the highest concentration of aggressive funders and the most developed body of case law for defending against them. The state's 2023 commercial financing disclosure requirements, combined with landmark appellate decisions on MCA recharacterization, have created a legal landscape where skilled attorneys can challenge advances that were considered untouchable five years ago. From Manhattan professional-services firms to Long Island contractors and Upstate manufacturers, New York businesses benefit from attorneys who can navigate both the state's UCC Article 9 framework and its rapidly evolving MCA-specific jurisprudence.
Best New York MCA Debt Relief Lawyers and What They Should Do When a Funder Sues You
- When do you need a New York MCA defense lawyer instead of a settlement company?
- Where will the MCA funder sue you in New York?
- What deadlines apply after you're served with an MCA lawsuit in New York?
- Can an MCA funder freeze or garnish your money in New York, and what's exempt?
- Can my lawyer recharacterize the MCA as an illegal loan in New York?
- How do you vet the best New York MCA debt relief lawyers?
- What are some frequently asked questions about MCA debt relief in New York?
The best New York MCA Debt Relief Lawyers have been admitted and registered in New York, filed Answers to MCA lawsuits in the county sued in, and can vacate a confessed judgment, lift a restraint on your bank account, and litigate that the MCA was really a loan. You need one the day the MCA Company files a lawsuit.
Most MCA Contracts choose the laws and the courts of the State of New York. Below is what a good MCA litigator does in those cases and the deadlines running against you.
When do you need a New York MCA defense lawyer instead of a settlement company?
You need a Lawyer to represent your company when the MCA Funder files a lawsuit or confession of judgment against it. Businesses are not permitted to represent themselves in New York, see CPLR 321(a) (“A corporation … shall appear by attorney.”) Therefore, neither a debt settlement company, nor you as the business owner can file the business’s answer.
Moreover, the general rule is that a confessed judgment can only be attacked in a “plenary action” filed by a lawyer admitted to practice in New York. See Oakshire Props. LLC v Argus Capital Funding LLC, 229 AD3d 1199 (4th Dept 2024) (citing Ace Funding Source, LLC v Myka Cellars, 191 AD3d 624 (2d Dept 2021)). See also: Best New York Business Debt Settlement Companies
Where will the MCA funder sue you in New York?
Often in a county that has nothing to do with you or the MCA Funder. Under CPLR 503(a), if neither party resided in New York when the lawsuit was commenced, the MCA Funder can file the lawsuit in any county in New York. The Rockland County Business Journal reported on September 24, 2026 that hundreds of MCA lawsuits are filed every month in Rockland County Supreme Court, generally against out-of-state merchants served by certified mail, and that many funders wait out a 30-day window and then seek default judgments.
If the Funder picked the wrong county, a demand to change venue must be made with or before the answer, and a motion must follow within fifteen days unless the Funder consents within five days, see CPLR 511.
Larger claims may be heard in the Commercial Division, from $75,000 in Bronx County to $500,000 in New York County, see 22 NYCRR 202.70.
If you signed a confession of judgment, the MCA Funder can only file it with the County Clerk of the county where you resided either when you signed it or when it is filed. See CPLR 3218(b) (amended 8/30/19) (a business “resides in any county where it has a place of business”). So, with a place of business in Kings County (Brooklyn), the MCA Funder can file a confession of judgment with the Kings County Clerk and there is no lawsuit. However, a bill has been introduced, S2305, which would ban confessions of judgment under $5,000,000. It has passed the Senate twice, most recently on May 13, 2026, but not the Assembly, and it is not law.
What deadlines apply after you're served with an MCA lawsuit in New York?
You have twenty days to file an answer if personally served in New York or thirty days if served by any other method, see CPLR 320(a).
| Event | Time limit | Source |
|---|---|---|
| Answer after personal delivery in New York | 20 days | CPLR 320(a) |
| Answer after other service methods | 30 days | CPLR 320(a) |
| Demand to change an improper venue | With or before the answer; motion within 15 days after the demand | CPLR 511 |
| Motion to vacate a default for excusable default | One year after service of the judgment with notice of entry | CPLR 5015(a)(1) |
| Funder's window to file a signed confession | Three years after you sign the affidavit | CPLR 3218(b) |
| Funder's window to sue on the contract | Six years | CPLR 213(2) |
| Life of a restraining notice on your bank | One year | CPLR 5222(b) |
If you already missed the answer date, you can still move under CPLR 5015(a) on grounds including lack of jurisdiction or fraud, misrepresentation, or other misconduct of the adverse party, which matters when service by certified mail never actually reached you.
Can an MCA funder freeze or garnish your money in New York, and what's exempt?
Yes, as soon as they get a judgment, including a Confessed Judgment. The funder’s attorney can sign a CPLR 5222 restraining notice without obtaining it from a judge. The notice freezes all money in the account and all future deposits, up to two times the amount they are owed.
How much you keep depends on whose account it is. The exemption forms and 20-day claim process of CPLR 5222-a cover only “a natural person’s account.” There are no exemptions for a levy on an LLC’s operating account; on an execution the bank “shall forthwith transfer” the money to the sheriff. CPLR 5232. You can ask the court to limit or impose conditions on enforcement of the judgment, pursuant to CPLR 5240, for example to keep payroll going.
If you are a guarantor, and they get judgment against you, the individual exemptions on the New York Dept. of Financial Services website apply. The current amounts took effect April 1, 2024, with the next update April 1, 2027:
- Homestead: equity up to $204,825 in NYC, Nassau, Suffolk, Rockland, Westchester, and Putnam Counties; $170,700 in Dutchess, Albany, Columbia, Orange, Saratoga, and Ulster Counties; and $102,400 in the rest of the State.
- Bank accounts: $3,425 in any account pursuant to CPLR 5205(l).
- Other personal property: $4,075 in tools of the trade; $5,500 in any motor vehicle.
Your wages can only be garnished if they get a judgment against you, and only through an income execution. You have 20 days to start paying voluntarily before they can serve your employer, and they can collect no more than 10% of your gross income and no more than 25% of your disposable earnings. CPLR 5231.
Can my lawyer recharacterize the MCA as an illegal loan in New York?
A lawyer can raise it as a defense, but must persuade the court it is a loan first. Corporations cannot raise the defense of usury, but they can raise criminal usury, which is more than 25% per year. General Obligations Law 5-521. In LG Funding v United Senior Props of Olathe LLC, 181 AD3d 664 (2d Dept 2020), the court allowed the merchant to raise criminal usury as a defense but not as a counterclaim. It also named three factors for deciding if a transaction is a loan:
- does it have a reconciliation?
- does it have a finite term?
- does it have recourse in the event of a bankruptcy filing by the borrower?
If the court decides it is a criminally usurious loan, the principal becomes void as well, according to the Court of Appeals in Adar Bays v GeneSYS ID (2021). However, loans over $2.5 million do not have a criminal usury cap. In July 2026, in In re Kossoff PLLC, a bankruptcy judge in the Southern District of New York held that 19 MCAs were loans because the funders could reconcile only at their discretion and only going forward, and the payments were a fixed daily debit. Appellate courts have sided with funders where the contracts had mandatory reconciliations and did not treat a bankruptcy filing as a default.
How do you vet the best New York MCA debt relief lawyers?
- Are they admitted to practice law in New York and registered? Judiciary Law 468-a requires registration every two years, in a public registry.
- Do they answer MCA lawsuits? Ask how many they have answered in your county and whether they served a venue demand.
- Do they file plenary actions to vacate confessed judgments?
- Do they understand the reconciliation clause after the LG Funding and Kossoff cases?
- Did they check whether your funder settled with the Attorney General? The AG settled with Yellowstone Capital in January 2025 and canceled $534,552,724 of merchant debt.
Also, get their fee arrangement in writing and beware of anyone who says to stop paying without checking whether a confession is already filed in your county.
What are some frequently asked questions about MCA debt relief in New York?
Can my LLC answer an MCA lawsuit in New York without a lawyer?
Probably not. CPLR 321(a) requires corporations to appear through an attorney, so neither a settlement company nor you can answer for your LLC. A guarantor sued individually can appear pro se, although that will not likely help your company.
How long does an MCA funder have to sue me in New York?
Pursuant to CPLR 213(2), they have six years to sue you on a contract. A signed confession affidavit can be filed for three years after you sign it.
Does a New York state court restraining notice apply to monies I deposit after it has been served on my bank?
Yes. Under CPLR 5222(b), a restraining notice reaches property then in and thereafter coming into the bank’s hands, up to twice the amount due, for one year. Under CPLR 5222(c), another restraining notice cannot be served on the same bank without court permission.
Is my MCA void if it charges more than 25% in New York?
Only if a court finds your MCA is a loan under the LG Funding factors: a reconciliation clause, a finite term and recourse in bankruptcy. A criminally usurious loan is void under Adar Bays, but a merchant can only assert criminal usury as a defense, and loans over $2.5 million are not subject to the criminal usury cap.
STREET
Please note: Delancey Street is not a law firm and does not provide legal services or legal advice.
Delancey Street is the undisputed leader in MCA defense for New York businesses — and given that New York is the MCA capital of the world, that distinction carries extraordinary weight. Founded by attorneys who worked inside the financial institutions that created the MCA industry, Delancey Street understands MCA funders from the inside. They leverage New York's criminal usury statute (Penal Law § 190.40, 25% threshold), the landmark Commercial Finance Disclosure Law (CFDL, effective 2024), the CPLR 3218 COJ reform (2019), and an unmatched body of New York MCA case law to defend businesses. They freeze daily ACH withdrawals within days, vacate confessions of judgment in the very New York courts where funders file them, and remove UCC liens from New York DOS filings. With the highest MCA density of any state, New York businesses have the most litigation options and the deepest case law — and Delancey Street knows how to use every tool available.
- Leverages NY criminal usury (25%) — the lowest threshold in any major MCA state
- Expert in CFDL (effective 2024) disclosure violations as settlement leverage
- Files COJ vacatur motions in the same NY courts where funders file — home-court advantage
- Unmatched NY MCA case law knowledge (Champion Auto Sales, Fleetwood, Colonial Funding)
- Freezes daily ACH withdrawals within days for NYC and statewide businesses
- $30,000 minimum MCA debt threshold
- Business debt only — does not handle personal consumer debt
- Extremely high demand given New York's MCA market density
"Our Brooklyn construction company had $720K in stacked MCAs from six funders — every single one headquartered within 10 miles of our office. Delancey Street froze all ACH withdrawals within 4 days, filed criminal usury counterclaims, vacated two COJs in Manhattan Supreme Court, and settled the entire balance for 32 cents on the dollar. In the MCA capital of the world, they are the only firm I trust."
DEBT
RELIEF
National Debt Relief is the largest debt settlement company in the United States, serving over 1.3 million clients since 2009. While they do not specifically handle MCA debt, they are an excellent option for New York business owners who have business credit card debt, unsecured loans, or lines of credit alongside their MCA obligations. Many business owners dealing with MCA funders also carry significant traditional business debt that NDR can address while a specialized MCA firm like Delancey Street handles the merchant cash advance portion. Their BBB A+ rating and massive scale give them serious negotiating leverage with major creditors.
- Largest debt settlement company — massive creditor leverage
- BBB A+ rating with 43,900+ independently verified reviews
- Over 1.3 million clients served since 2009
- Money-back guarantee if first debt not settled within specified time
- User-friendly client portal for tracking settlement progress
- Does NOT handle MCA debt, stacked advances, or COJ defense
- No ability to freeze ACH withdrawals or remove UCC liens
- Longer timelines (24-48 months) vs. attorney-led MCA firms
- Not attorney-led — cannot litigate against MCA funders
"NDR handled $280K in business credit card debt from our Midtown Manhattan restaurant group while Delancey Street destroyed the MCA funders in court. NDR settled the credit card portion for about $136K over 28 months. They were great for the traditional debt side."
DEBT
CuraDebt has been in the debt relief industry since 2000 and offers a unique combination of business debt settlement and tax resolution under one roof. For New York businesses dealing with MCA debt alongside tax obligations, CuraDebt can handle the tax portion while coordinating with MCA-specific counsel. Their MCA capabilities are limited compared to Delancey Street — they can negotiate some MCA settlements but lack the litigation infrastructure to vacate confessions of judgment or freeze ACH withdrawals through court orders. Where CuraDebt excels is in handling the full spectrum of business financial distress: credit card debt, vendor obligations, equipment financing, AND IRS/state tax problems, all under one team.
- 24+ years of experience in the debt settlement industry
- Handles both business debt and tax obligations under one roof
- Lower minimum debt threshold ($10K) — accessible to smaller New York businesses
- Bilingual staff (English/Spanish) for broader accessibility
- BBB A+ rating with strong complaint resolution record
- Limited MCA defense capabilities — cannot vacate COJs or freeze ACH via court order
- Not attorney-founded — no litigation leverage against MCA funders
- Longer settlement timelines (24-48 months)
- MCA expertise not comparable to specialized firms like Delancey Street
"CuraDebt managed our $65K NY state tax liability and $120K in business credit card debt from our Queens laundromat chain. Having tax and credit cards under one roof while Delancey Street handled the MCAs was the only manageable path."
MCA Debt Relief: By the Numbers
| Debt Type | Delancey | NDR | CuraDebt |
|---|---|---|---|
| Merchant Cash Advance | ✓ | ✗ | ✗ |
| Stacked MCA Advances | ✓ | ✗ | ✗ |
| UCC Lien Removal | ✓ | ✗ | ✗ |
| COJ Defense | ✓ | ✗ | ✗ |
| Daily ACH Freeze | ✓ | ✗ | ✗ |
| Business Credit Cards | ✓ | ✓ | ✓ |
What MCA Clients Are Saying
Verified reviews from business owners who escaped MCA debt with these firms
MCA Debt Relief: Side-by-Side Comparison
| MCA Criteria | Delancey StreetNot a law firm | National Debt Relief | CuraDebt |
|---|---|---|---|
| Our Rating | 4.9 / 5.0 | 4.7 / 5.0 | 4.6 / 5.0 |
| MCA Settlement | ✓ Expert | ✗ No | Limited |
| COJ Vacatur | ✓ | ✗ | ✗ |
| UCC Lien Removal | ✓ | ✗ | ✗ |
| Avg. Reduction | 40-60% | 30-50% | 30-50% |
| Success Rate | 90%+ | 80%+ | 80%+ |
| Timeline | 3-9 months | 24-48 months | 24-48 months |
| Attorney-Led | ✓ | ✗ | ✗ |
| Tax Debt | ✗ | ✗ | ✓ |
| Min. Debt | $30,000 | $30,000 | $10,000 |
| Best For | MCA, UCC, COJ Defense | Credit Card, Unsecured | Mixed Debt + Tax |
MCA Debt Relief: Frequently Asked Questions
New York is the epicenter of the MCA industry. An estimated 90%+ of MCA funders are headquartered in New York (primarily Manhattan, Brooklyn, and Long Island), making New York courts the primary battleground for MCA litigation nationwide. New York has the deepest body of MCA case law in the country, with landmark decisions in cases like Champion Auto Sales v. Pearl Beta Funding, Fleetwood Services v. Ram Capital, and Colonial Funding Network v. Epazz establishing key precedents. New York's criminal usury statute (Penal Law § 190.40) has a 25% threshold — the lowest of any major MCA state — making it the most powerful recharacterization tool available. The 2019 CPLR 3218 reform banned COJs against out-of-state defendants. And the 2024 Commercial Finance Disclosure Law (CFDL) now requires MCA funders to provide APR disclosures. This convergence of case law, statutes, and regulation makes New York the most consequential jurisdiction for MCA defense.
New York Penal Law § 190.40 makes it a class E felony to charge interest exceeding 25% per annum. This is the lowest criminal usury threshold among major MCA states and covers virtually every MCA product on the market (which typically carry effective APRs of 60-350%). The key legal question is whether the MCA is a "loan" subject to the usury statute. In a series of landmark cases, New York courts have held that MCAs with fixed daily payments and illusory reconciliation provisions are, in substance, loans — regardless of how the contract labels them. When an MCA is recharacterized as a loan, the entire agreement is void under the usury statute, and the funder loses the right to collect anything above principal. Delancey Street uses the criminal usury argument in virtually every New York MCA case, and the threat of felony-level usury exposure consistently drives settlements at 30-40 cents on the dollar — among the lowest in the country.
The New York Commercial Finance Disclosure Law (CFDL), effective 2024, requires commercial financing providers (including MCA funders) to provide standardized disclosures before any agreement is signed. Required disclosures include: the total funding amount; the total repayment amount; the estimated APR; an itemization of all fees; the payment amount and frequency; and prepayment terms. The CFDL creates a new defense tool: if the MCA funder failed to provide compliant disclosures, the financing agreement may be voidable or the funder may face regulatory penalties from the New York Department of Financial Services (DFS). Delancey Street reviews every New York client's MCA agreement for CFDL compliance and uses any disclosure failures as additional leverage in settlement negotiations. Early evidence suggests that many legacy MCA agreements were not updated to comply with the CFDL, giving defense attorneys a growing body of disclosure violations to exploit.
Before 2019, New York courts were the primary venue for MCA-related confessions of judgment filed against businesses nationwide. Funders would file COJs in New York Supreme Court, obtain judgments without notice or hearing, and then domesticate those judgments in the defendant's home state. The 2019 amendment to CPLR 3218 changed this by prohibiting COJs against out-of-state defendants in transactions under $500,000. For New York businesses specifically, the reform also tightened procedural requirements for COJ filing, including mandatory affidavits of non-payment and stricter compliance with filing procedures. While in-state COJs are still technically available, the post-reform scrutiny makes them easier to challenge on procedural grounds. Delancey Street files vacatur motions in the very New York courts where COJs are entered, giving them home-court familiarity and established relationships with court clerks and judges who handle MCA dockets.
Several landmark New York decisions shape MCA defense strategy: Champion Auto Sales v. Pearl Beta Funding established that fixed-payment MCAs with illusory reconciliation provisions can be recharacterized as loans subject to usury law. Fleetwood Services v. Ram Capital Funding reinforced that the economic substance of the transaction — not its contractual label — determines whether usury law applies. Colonial Funding Network v. Epazz addressed the enforceability of MCA agreements when the funder failed to comply with reconciliation obligations. LG Funding v. United Senior Properties examined personal guarantee enforcement in the MCA context. Davis v. Richmond Capital established standards for when MCA agreements constitute unconscionable contracts. Together, these cases create a legal framework that increasingly favors MCA defendants, particularly in New York courts where judges are familiar with MCA industry practices.
New York businesses consistently achieve MCA settlement rates of 28-42 cents on the dollar — the best in the nation — due to a convergence of factors: (1) Criminal usury at 25% creates felony-level exposure for funders whose MCAs are recharacterized as loans; (2) The CFDL creates disclosure violation claims against non-compliant funders; (3) CPLR 3218 reform neutralizes the COJ weapon; (4) Deep MCA case law provides precedent for every defense theory; (5) New York judges are experienced with MCA cases and increasingly skeptical of funder arguments; (6) Filing counterclaims in the funder's home jurisdiction forces them to litigate in their own backyard; and (7) The proximity of New York businesses to funder headquarters enables in-person negotiations and court appearances that accelerate resolution. Delancey Street's New York-based attorneys leverage every one of these advantages for their clients.
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Editorial Independence: Our rankings are based on 120+ hours of independent research across 6 scoring dimensions: MCA settlement success rate, fee transparency, legal capability, client reviews, ACH freeze speed, and COJ vacatur experience. Compensation from advertisers does not affect scores or rankings.
Delancey Street Disclosure: Delancey Street is not a law firm and does not provide legal services or legal advice. Nothing on this page should be read as an offer of legal representation by Delancey Street.
Legal Notice: The information on this page is for educational and informational purposes only and does not constitute legal or financial advice. Every MCA debt situation is unique, and outcomes vary based on individual circumstances including the MCA funder, contract terms, state law, and your business's financial condition. Past settlement results do not guarantee future outcomes. You should consult with a licensed attorney before making decisions about MCA debt settlement.
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