Confession of judgment defense, UCC lien removal, restraining notice defense, and protection against predatory merchant cash advance enforcement.
Merchant cash advance lenders run a tight playbook: aggressive funding terms, daily ACH debits that crush operating cash flow, UCC filings that block bank financing, and confession of judgment enforcement that freezes accounts within hours. The good news is that the playbook is well-documented and there are well-documented counters to every step of it.
When an MCA lender files a confession of judgment under a defaulted funding agreement, the result is typically immediate: judgment entered without notice, bank accounts levied within hours, and the business unable to meet payroll the next morning. The firm moves immediately to vacate the judgment where vacating is available, negotiate release of the levy, and structure a workout that lets the business survive. The first 48 hours after a COJ judgment lands are the most critical window in the entire defense.
MCA lenders file UCC-1 financing statements that cover essentially all assets of the business, often using broad collateral descriptions designed to block competing bank financing. The firm negotiates UCC-3 terminations as part of settlements, files corrective documents where filings are overbroad, and clears the title position so the business can refinance into legitimate bank capital.
When restraining notices land at the bank, the operating account is frozen instantly. Vendors don't get paid. Payroll doesn't run. Every hour matters. The firm moves directly with the depository bank and with opposing counsel to release the restraint and structure a payment arrangement that keeps the business alive while the underlying matter is resolved.
Most MCA matters settle. The question is at what discount and on what payment structure. The firm negotiates settlements at significant discounts to face value, structures payment arrangements that the business can actually meet, and secures broad releases that protect against future claims. The settlement number is almost always negotiable and the firm runs the negotiation with the experience that comes from working both sides of this market.
When a business has taken on multiple MCAs the classic "MCA stack" the daily debits often exceed the business's daily cash generation. The firm restructures the stack, prioritizing which lenders to settle, which to convert to payment plans, and how to introduce traditional bank capital as the takeout. This work is done in coordination with the firm's commercial capital advisory relationships through Forman Capital Partners.
In appropriate cases, MCA agreements may be challenged as disguised loans subject to state usury caps. The firm evaluates the agreement structure reconciliation provisions, true sale characterization, recourse mechanics and pursues this argument where the facts support it.
Call the firm immediately. The first 48 hours are critical. Steps may include emergency motion to vacate, negotiation with the lender's collection counsel, and direct work with the depository bank to release any active levy. Every hour matters.
Highly fact-dependent. Settlements typically land at a meaningful discount to face value, with the precise number driven by the lender's position, the business's financial condition, and the available alternatives. The firm runs the negotiation with the experience that comes from working many of these matters.
Yes. The firm builds a workout strategy across the stack, often combined with takeout capital arranged through Forman Capital Partners. The strategy varies based on which lenders are most aggressive, which have the strongest positions, and what bank capital is realistically available as a takeout.
No or at least, not without counsel. Stopping payments typically triggers the default acceleration clause and a confession of judgment. The firm structures the right approach: reconciliation, settlement, or restructuring not unilateral default.
Initial consultations are complimentary and held in strict confidence. Most matters can be clarified in a twenty-minute introductory call. Bilingual in English and Spanish.
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