Top 3 Washington MCA Debt
Relief Lawyers

Best Washington MCA Debt Relief Lawyers: When You Need One and What They Actually Do

When do you need the Best Washington MCA Debt Relief Lawyers? When the funder has sued you, confessed judgment against you, or domesticated a New York judgment here. Only the Best Washington MCA Debt Relief Lawyers can answer the suit in time (within 20 days), attack the confession of judgment, file your exemptions, and defend your personal guaranty.

Most Merchant Cash Advance Contracts are governed by New York law and New York courts. There are three ways the funder can take your accounts, each on a different timeline. To learn how to vet settlement firms under the Washington Debt Adjusting Act, see our Best Washington Business Debt Settlement Companies Page.

When do you need a Washington MCA Debt Relief Lawyer vs. a Debt Settlement Company?

You need an attorney if you have any Court papers against you or your business. The Best MCA Debt Settlement Companies in Washington are prohibited by the Washington Debt Adjusting Act from filing court documents such as Exemption Affidavits, Garnishment Releases or Stipulations, giving you legal advice, and taking Power of Attorney from you. See RCW 18.28.130. Lawyers are exempt from this Act and can both negotiate and litigate.

Under Superior Court Civil Rule 12(a), you have 20 days, not including the day you were served, to serve your answer after service of the Summons and Complaint. If you were personally served outside Washington, you have 60 days. Do not rely on a debt settlement company to “work with the funder” because they cannot stop the funder from entering a default judgment against you while they talk.

Where will a funder sue you in Washington and how can they domesticate a New York Judgment?

Normally, the funder sues in New York under the contract’s Forum Selection clause. Once they get their New York judgment, they can file an authenticated copy with the clerk of any Superior Court or District Court in Washington, and it will be treated as though that court entered it. See RCW 6.36.025. However, the New York judgment cannot be executed on in Washington until 10 days after the proof of mailing is filed in Superior Court or 14 days after for District Courts. See RCW 6.36.035. This is your last opportunity to negotiate or attack the New York Judgment before a writ of execution takes your money.

If the funder sues in Washington, they can file in District Court if they are suing for $100,000.00 or less, not including interest, costs and attorneys’ fees, pursuant to RCW 3.66.020. Anything more goes to Superior Court. Small Claims is out because businesses cannot sue there for more than $5,000.00. See RCW 12.40.010. If they have not sued you yet, they have 6 years to do so on a written contract under Washington law (RCW 4.16.040), but the MCA contract may be subject to a New York limitation period because of its New York Choice of Law clause.

Can the funder use a Confession of Judgment against you in Washington?

Yes, but they likely cannot file it in New York, because since August 30, 2019, under CPLR 3218(b), a Confession of Judgment can only be filed in the county in which you resided at the time of signing or the time of filing. A business resides wherever it has a place of business, so if you and your business do not have a place of business in New York State, the funder must use Washington procedures to file the confession of judgment.

This procedure is stricter than many MCAs anticipate. Under RCW 4.60, the written statement must be verified by oath, authorize judgment for a specified sum, and set forth concisely the facts out of which the debt arose; it must be acknowledged before an officer authorized to take acknowledgments of deeds and found sufficient by a superior court judge before the clerk enters it. When one of two or more persons jointly bound confesses, only their joint property and the signer’s own property is bound.

Check the confession of judgment that you signed against this statute. If the judgment has already been entered, under Civil Rule 60(b), you can move to vacate it if there was any irregularity in the way it was obtained, any fraud or misrepresentation by the other party, or if it is void. The motion has to be made within a reasonable time and, for irregularity, not more than a year after entry, supported by an affidavit setting out the facts of your defense.

What are the important deadlines in a Washington MCA dispute?

What can an MCA funder take in Washington?

MCA funders can garnish bank accounts and wages and place liens on real estate in Washington. The exemptions are specific and must be claimed by a lawyer in some cases. For individual guarantors on a non-consumer debt, $500 in a bank account is exempt by operation of law under RCW 6.15.010, along with a vehicle up to $15,000 and tools of the trade up to $15,000. LLC and corporate accounts have no such exemption, so most of a company account can be taken. Wage exemptions for a non-consumer debt are set out in RCW 6.27.150: the greater of 75% of disposable earnings or 35 times the federal minimum hourly wage. You have 28 days after a garnishment writ has issued to claim exemptions, and the creditor has 7 days to object under RCW 6.27.160.

The homestead exemption in Washington is greater than in many other states, and is set out in RCW 6.13.030. It is the greater of $125,000 or your county’s median single family sale price for the previous year. For 2025, using figures from the Washington Center for Real Estate Research, that is $940,000 in King, $755,000 in Snohomish, $560,000 in Pierce, $555,000 in Clark, $420,698 in Spokane, and $199,500 in Ferry County. However, the homestead exemption does not protect against a security agreement describing the homestead as collateral under RCW 6.13.080.

Finally, Washington presumes that debts incurred during the marriage are community debts under Pacific Gamble Robinson Co. v. Lapp. A guaranty signed by one spouse is presumed to be a community debt unless clear and convincing evidence shows that no benefit to the community was intended under Bank of Washington v. Hilltop Shakemill. Since you guaranteed your own company’s advance, that is hard to show, so joint bank accounts and your spouse’s wages could be taken, although your spouse’s separate property would be exempt from your separate debts under RCW 26.16.200.

Is a merchant cash advance usurious under Washington law?

Almost never. That is why recharacterization arguments get made under New York law. See RCW 19.52.080 (corporations, partnerships, etc. cannot claim usury; individuals cannot claim usury if the loan was primarily for a business purpose). To recharacterize an MCA in New York, courts look for a reconciliation provision, a finite term, and recourse if the merchant files for bankruptcy. See LG Funding, LLC v. United Senior Properties of Olathe, LLC, 181 A.D.3d 664 (2d Dept 2020). If the transaction is recharacterized as a loan, the business can raise criminal usury (over 25% per year) as a defense, but cannot bring it as a counterclaim.

How do I find or vet a Washington MCA Debt Relief Lawyer?

Ask questions like these.

• Is the lawyer licensed in Washington (check with the Washington State Bar Association), and who will represent you in New York?
• How many MCA suits, confessed judgments, or domesticated judgments have they defended, and where?
• What will you check first in my confession of judgment under RCW 4.60, or in my contract under the New York reconciliation test?
• How will you protect my homestead exemption, personal bank accounts, and (if applicable) my spouse’s wages?
• What is your fee structure? What happens if we cannot settle the case and it goes to trial?

Frequently Asked Questions

How long do I have to respond to a merchant cash advance lawsuit in Washington?

Twenty days after service of the summons and complaint, not including the day of service, under Civil Rule 12(a). If you were personally served outside the state, you have 60 days.

Can a New York MCA funder file a confession of judgment in Washington?

Not in New York if you do not reside or do business in New York. CPLR 3218(b) limits filing to the county where the defendant resides, so the funder must use the RCW 4.60 process, which requires a verified statement and a judge’s approval.

How much of my bank account is exempt from a merchant cash advance judgment in Washington?

If you are sued as an individual guarantor on a non-consumer debt, you are automatically entitled to $500.00 of exemption in your bank account. See RCW 6.15.010. If you are an entity, you do not have this exemption.

Can I use a Washington settlement company to respond to my MCA lawsuit?

No. RCW 18.28.130 prohibits non-lawyer debt adjusters from preparing legal documents such as exemption affidavits or stipulations, giving legal advice, or accepting power of attorney.