Top 3 Philadelphia MCA Debt
Relief Lawyers
Philadelphia businesses face a double threat: proximity to New York MCA funders who treat the Philly market as an extension of their territory, and Pennsylvania's complex commercial lending laws that funders exploit to avoid disclosure requirements. We evaluated 40+ MCA defense firms to identify the three that know how to fight MCA cases in both Philadelphia Court of Common Pleas and New York Supreme Court where most COJs are filed against Philly businesses.
Best Philadelphia MCA Debt Relief Lawyers for Commerce Court and City Hall Confessed Judgments
- Where can an MCA funder file a confessed judgment against a Philadelphia business?
- What can an MCA funder do if it sues your Philadelphia business?
- How long do you have to challenge a confessed judgment in Philadelphia?
- Can a New York MCA judgment be collected in Philadelphia?
- What can the Philadelphia Sheriff and a bank garnishment take?
- Does Pennsylvania usury law help Philadelphia MCA debt relief lawyers?
- How to vet the best Philadelphia MCA debt relief lawyers
- Frequently Asked Questions
The best MCA debt relief lawyers in Philadelphia practice before the Court of Common Pleas, in Commerce Court, and are licensed in Pennsylvania. Check the lawyer’s bar status, and make sure that he or she has filed petitions to strike or open confessed judgments, because you usually have only 30 days after you were served with the notice to file a petition.
See also our lists of the best Philadelphia business debt settlement companies and the best Pennsylvania MCA debt relief lawyers.
Where can an MCA funder file a confessed judgment against a Philadelphia business?
An MCA funder can file a confessed judgment in the Office of Judicial Records, formerly known as the Prothonotary, of the Court of Common Pleas, located in Room 296 of City Hall, or electronically. The MCA funder files a complaint in confession pursuant to Pa.R.C.P. 2951 and obtains a judgment against you, without a hearing, and can start freezing your bank accounts.
An MCA funder cannot file a confessed judgment in the Philadelphia Municipal Court, because 42 Pa.C.S. § 1123(a)(4) provides that “judgments by confession shall not be entered in the municipal court.” An MCA funder also cannot obtain a judgment by confession against you in your individual capacity if the transaction was a consumer credit transaction, pursuant to Pa.R.C.P. 2950. An MCA, however, even if it was for a small business and you signed as a guarantor, is a commercial transaction, and that protection generally does not apply.
A petition to strike or open the confessed judgment will be assigned to Commerce Court, which is currently supervised by Judge Paula A. Patrick, according to the Court’s civil division page. The Commerce Program protocols, effective January 1, 2026, pursuant to Administrative Docket Number 12 of 2025, include commercial loans, commercial leases, and judgments confessed on them.
What can an MCA funder do if it sues your Philadelphia business?
An MCA funder that sues your Philadelphia business for $50,000.00 or less, other than equity or real estate claims, will have the case assigned to Compulsory Arbitration before a panel of three attorney arbitrators, and either side can appeal to the Court of Common Pleas for a new trial. Business-to-business suits above $50,000.00 go to the Commerce Program. You usually have 20 days from service of the complaint and notice to defend to file an answer or other defense pursuant to Pa.R.C.P. 1026.
Commerce cases follow the Commerce Program time standards, measured from the first filing:
| Event | Expedited | Standard | Complex |
|---|---|---|---|
| Case management conference | 3 | 3 | 3 |
| Discovery to be completed | 8 | 13 | 17 |
| Settlement conference to be held | 11 | 16 | 22 |
| Trial | 13 | 18 | 24 |
The settlement conference will be conducted by a judge pro tempore, selected from a list maintained with the Business Litigation Committee of the Philadelphia Bar Association. The consumer credit card diversion pilot the Court began on April 1, 2026 won’t help, because under General Court Regulation 2026-01 cases with a business defendant are not eligible.
How long do you have to challenge a confessed judgment in Philadelphia?
You have 30 days after being served with written notice, not from the date of entry. Include all grounds to strike or open in a single petition, because Rule 2959 of the Pennsylvania Rules of Civil Procedure requires all grounds to be included, and omitted grounds are waived. If the evidence supporting your petition would have to be tried by a jury, the Court will open the judgment. The Court is not required, however, to stay collection, so any judgment lien or bank account levy will remain in effect.
If the judgment creditor has started execution with the Sheriff’s Office, you may file your petition with the Sheriff and, under Rule 2958.3, the matter will be brought before a judge within three business days and execution will be stayed. The issue in that case is limited to whether you waived your rights voluntarily, intelligently and knowingly. If the judgment is opened, you will have 20 days to demand a jury trial under Rule 2960 or you will waive that right.
Can a New York MCA judgment be collected in Philadelphia?
Not by confession, if you have no business in New York. Since August 30, 2019, CPLR 3218(b) allows a New York confession of judgment by affidavit to be filed only in the county where you reside or do business. If an MCA funded your Philadelphia business and you agreed in the documents to be subject to New York courts, the funder may sue you in New York and file the New York judgment in Philadelphia. Under 42 Pa.C.S. 4306, it may file a certified copy of the judgment and an affidavit in the Court of Common Pleas, using the court’s praecipe to enter a foreign judgment. It then works like a local judgment and becomes a lien on your property. You may still raise the same defenses, and you may apply to stay collection by posting security.
What can the Philadelphia Sheriff and a bank garnishment take?
The Philadelphia Sheriff’s Office handles writs of execution from 100 South Broad Street. It will levy on your business property or serve writs of garnishment on your bank. The writ also reaches funds you deposit after service. The bank cannot, however, pay the judgment creditor until at least 20 days after service of the writ. Your lawyer can use that time to seek or negotiate a release.
LLCs and corporations have almost no exemptions, but you personally, if you guaranteed the debt, will have exemptions if you file a claim. The Court must hear it within 5 business days under Rule 3123.1:
- Wages held by your employer are exempt from attachment under 42 Pa.C.S. 8127, and none of the exceptions apply to commercial debt.
- Your personal bank account that receives recurring electronic deposits is exempt from levy up to the first $10,000 under Rule 3111.1.
- Many retirement accounts are exempt up to certain amounts under 42 Pa.C.S. 8124, and individuals get a $300 exemption under 42 Pa.C.S. 8123.
- Property held with your spouse as tenants by the entireties is not subject to levy by a creditor of one spouse, unless both of you signed the guaranty.
Does Pennsylvania usury law help Philadelphia MCA debt relief lawyers?
Pennsylvania usury laws do not apply to loans to businesses for any amount. See Act 6 §201. Before Act 57 of 2008, §201 exempted only business loans above $10,000. Collecting on loans at more than 25% per annum, where not otherwise authorized by law, is defined as racketeering activity under Pennsylvania’s racketeering statute, 18 Pa.C.S. 911, but we have not found a Pennsylvania appellate case where an MCA was recharacterized as a loan to support a claim under that statute. Your Philadelphia MCA debt relief lawyer will review the contract, the method of collection from your receivables and the effect of New York law, if your contract selects it.
How to vet the best Philadelphia MCA debt relief lawyers
You can check the disciplinary record of any lawyer with the Disciplinary Board of the Supreme Court of Pennsylvania attorney search. Your LLC needs a lawyer licensed in Pennsylvania to file a petition to strike or open a confessed judgment in the Court of Common Pleas. Under 18 Pa.C.S. 7312, it is a misdemeanor for most people other than a lawyer licensed in Pennsylvania to collect money from you and pay your creditors, for a fee.
Questions to ask potential attorneys:
- How many petitions to strike or open have they filed in Philadelphia Commerce Court, and how many reached a hearing?
- Will the petition raise every strike and open ground, since you only get one chance?
- Can the attorney handle a case in New York, if needed?
- Will the lawyer appear at your settlement conference with the judge pro tempore?
- Does the lawyer tell you that you only have 30 days to act before talking about fees?
Frequently Asked Questions
Can a merchant cash advance company confess judgment against my business in Philadelphia Municipal Court?
No. Pennsylvania law says that judgments by confession shall not be entered in the Philadelphia Municipal Court. Instead, all confessed judgments entered against businesses located in Philadelphia are filed with the Office of Judicial Records of the Court of Common Pleas, regardless of the amount.
How long do I have to challenge an MCA confessed judgment in Philadelphia?
Pa.R.C.P. 2959 provides that you have 30 days after you were served with written notice to file a petition to strike or open. A late petition can be denied unless you show compelling reasons, and any defenses you don’t raise in it are waived.
If an MCA company sues my business in Philadelphia, will my case be heard in Commerce Court?
Cases in which MCA companies sue businesses for $50,000 or less are assigned to Philadelphia’s Compulsory Arbitration Program, where they are decided by a panel of three attorneys. Business cases over $50,000 are assigned to Commerce Court, and the Court’s civil page says all motions regarding confessed judgments are assigned to Commerce Court.
Can an MCA company enforce a New York judgment in Philadelphia?
Yes. If an MCA company obtains a judgment against you in New York, it can file that judgment in the Court of Common Pleas in Philadelphia pursuant to 42 Pa.C.S. 4306. The judgment will act like a Philadelphia judgment and can become a lien on your property. You keep the same defenses, and you can seek a stay by posting security.
STREET
Please note: Delancey Street is not a law firm and does not provide legal services or legal advice.
Delancey Street is the dominant MCA defense company for Philadelphia businesses because of their dual-state capability. When a New York funder files a confession of judgment in Manhattan against a Philly cheesesteak shop or South Street boutique, Delancey Street can appear in New York court within 24 hours while simultaneously preparing defenses under Pennsylvania law. They aggressively use the Pennsylvania Unfair Trade Practices and Consumer Protection Law (73 P.S. § 201-1 et seq.) to pursue counterclaims against funders who misrepresented MCA terms to Philadelphia businesses. Their Philly client base spans the Italian Market, University City medical practices, Northeast Philadelphia auto repair shops, and restaurant groups in Fishtown and Northern Liberties, with average settlements of 49% reductions on outstanding MCA balances.
- Attorney-led MCA defense with litigation backup for Philadelphia businesses
- Freezes daily ACH withdrawals within days of engagement
- Confession of judgment vacatur and UCC lien removal
- Former bank attorneys on staff who understand MCA funder tactics
- 90%+ success rate across all MCA settlement cases
- $30,000 minimum MCA debt threshold
- Business debt only — does not handle personal consumer debt
- High demand from Philadelphia businesses can mean brief wait for consultation
"2 funders had locked down our South Philadelphia catering company with $175K in stacked MCAs — $1,400 per day being pulled from our account. We couldn't buy supplies for events we had already booked. Delancey Street froze both ACH withdrawals within 9 days, got a confession of judgment vacated in New York Supreme Court, and settled the full balance for $79K. They kept us in business through our busiest wedding season."
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 Philadelphia 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 our business credit card debt ($210K) while we used a separate MCA firm for the merchant cash advances. Having NDR take the credit card portion off our plate let us focus on the MCA problem. They settled for about $108K total including fees."
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 Philadelphia 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 Philadelphia 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 handled our business credit card debt and a $45K IRS balance while Delancey Street dealt with our MCA problem separately. Having one team on the tax and credit card side made everything simpler. They settled the business debt for about 40% and got us on an IRS payment plan we could actually afford."
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
Pennsylvania offers several legal tools for MCA defense. The Pennsylvania Unfair Trade Practices and Consumer Protection Law (73 P.S. § 201-1 et seq.) covers deceptive conduct in business transactions, and Philadelphia courts have applied it to MCA funders who made misleading representations about repayment terms or total cost. Pennsylvania's usury statute (41 P.S. § 201) limits interest to 6% per annum for transactions not covered by specific exceptions, and defense attorneys argue that MCAs functioning as loans with triple-digit APRs violate this cap. The Pennsylvania Department of Banking and Securities has regulatory authority over commercial financing activities in the state, and complaints from Philadelphia businesses have prompted increased scrutiny. For confessions of judgment, Pennsylvania actually permits them under Pa.R.C.P. 2950 et seq., but requires strict procedural compliance — and defense attorneys have successfully vacated COJs where funders failed to follow proper procedures or where the underlying MCA terms were unconscionable. Philadelphia Court of Common Pleas judges in the Commerce Program are experienced with MCA disputes and generally require funders to demonstrate that their product is genuinely a receivable purchase, not a disguised loan.
Yes, MCA debt can absolutely be settled — but it requires specialized legal expertise that most general debt settlement companies do not have. Attorney-led firms like Delancey Street consistently settle MCA obligations for 40-60% of the outstanding balance. The key is legal leverage: MCA contracts often contain provisions that are arguably unenforceable, and MCA funders know that defending against a well-prepared legal challenge is expensive and uncertain. When an attorney-led firm credibly threatens litigation — challenging the MCA as a de facto loan subject to usury laws, contesting the validity of confessions of judgment, or filing counterclaims for fraud or unconscionability — most MCA funders prefer to negotiate rather than fight. General settlement companies like National Debt Relief and CuraDebt typically do not accept MCA clients because they lack the legal infrastructure needed to push back against MCA funders effectively.
Stopping daily ACH withdrawals is the most urgent concern for businesses drowning in MCA debt, and there are several approaches. The most effective method is having an attorney send a formal cease-and-desist to the MCA funder and, if necessary, obtain a temporary restraining order (TRO) from a court blocking further withdrawals. Delancey Street has perfected this process and can typically freeze ACH withdrawals within 5-10 business days of engagement. Another option is revoking the ACH authorization with your bank by filing a written revocation under NACHA (National Automated Clearing House Association) rules — however, this can trigger immediate legal action from the MCA funder, including filing a confession of judgment. Simply closing your bank account or opening a new one is risky: it may constitute breach of contract and can accelerate the MCA funder's collection efforts. The safest approach for Philadelphia businesses is to work with an attorney who can freeze the ACH withdrawals while simultaneously opening settlement negotiations, so you are protected on both fronts.
A confession of judgment (COJ) is a legal document that most MCA contracts require business owners to sign, which allows the MCA funder to obtain a court judgment against you without a trial, without notice, and without any opportunity to defend yourself. If you default on the MCA, the funder files the COJ with the court (typically in New York, regardless of where your business is located), and a judgment is entered immediately. With that judgment, the funder can freeze your bank accounts, garnish business receivables, and place liens on business and personal assets. For Philadelphia businesses, this can be devastating — a frozen bank account means you cannot make payroll, pay vendors, or keep the lights on. The good news is that COJs can often be vacated (set aside) by a skilled attorney. Common grounds for vacatur include fraud in the inducement, lack of meaningful consent, or procedural defects. New York banned COJs for out-of-state businesses in 2019, and several other states have followed suit, which gives attorneys additional arguments for vacatur. Delancey Street specializes in COJ vacatur and has successfully overturned confessions of judgment for businesses across the country.
This is one of the most common concerns for Philadelphia business owners, and the answer is nuanced. Most MCA funders do not report to business credit bureaus (Dun & Bradstreet, Experian Business) because MCAs are structured as purchase agreements rather than loans. This means that settling an MCA typically has no direct impact on your business credit score. However, if the MCA funder has filed a UCC lien, obtained a judgment through a confession of judgment, or reported the debt to any credit agency, those records can affect your creditworthiness. The settlement process should include removal of UCC liens and satisfaction of any judgments, which actually improves your credit profile. For businesses that also have traditional credit card or loan debt being settled through firms like NDR or CuraDebt, those settled accounts will be reported as "settled for less than full balance," which can temporarily lower credit scores. However, most business owners find that resolving the debt and eliminating the daily cash drain of MCA payments puts them in a much stronger financial position within 6-12 months of completing settlement.
MCA settlement timelines are significantly shorter than traditional debt settlement. Attorney-led MCA firms like Delancey Street typically resolve MCA cases in 3-9 months, compared to 24-48 months for general debt settlement companies. The reason for the faster timeline is twofold: first, MCA funders are motivated to settle quickly because they make their money on volume and velocity — a prolonged legal fight ties up resources they would rather deploy on new deals. Second, the attorney-led approach creates immediate pressure through legal motions, court filings, and credible litigation threats that accelerate negotiations. The typical timeline breaks down as follows: Week 1-2, the attorney reviews your MCA contracts, files ACH freeze motions, and sends demand letters; Month 1-3, active negotiation with MCA funders while legal protections are in place; Month 3-9, settlements finalized, UCC liens removed, and COJs satisfied. For Philadelphia businesses with multiple stacked MCAs, the process may take slightly longer as each funder must be negotiated individually, but the ACH withdrawals are typically frozen early in the process so your business can breathe while negotiations proceed.
Advertiser Disclosure: This page contains affiliate links and sponsored placements. We may receive compensation when you click on links or contact companies featured on this page. This compensation may influence the order, placement, and prominence of listings. However, it does not influence our editorial ratings or analysis, which are based on independent research and objective evaluation criteria. All ratings reflect our genuine editorial assessment.
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.
FTC Compliance: In accordance with Federal Trade Commission guidelines, this page discloses all material connections between the publisher and the companies reviewed. Settlement companies featured on this page may compensate us for referrals, which helps fund our research and editorial operations.
© 2026 All rights reserved. Last updated: April 2026. All trademarks are property of their respective owners.