2026 Denver MCA Debt Relief Lawyers, Best Companies Exposed

A common question small business owners ask is “Who is the best debt relief company in Denver?” However, that is not the most relevant question for a business owner sued by a Merchant Cash Advance company. Why not? What small business owners looking for a debt relief company are usually looking for is a company that can work out payment plans with their creditors and bring their lawsuits to a halt. Negotiating payment plans and defending a lawsuit are separate jobs. Instead, business owners should ask which companies are able to provide legal counsel to defend a lawsuit.

Ask the company you hire what happens if a lawsuit is filed. Who is actually going to defend your lawsuit? It is tempting to rely on another business that was already at work on your debt, but never expect it to handle a lawsuit without making sure an actual lawyer is looking at your case. You want a lawyer who has agreed to be the lawyer for your business and all of its owners as individuals who are named.

The deadline to respond to a lawsuit might not be 30 days from when you opened the envelope, but instead can depend on which court and how the summons and complaint were sent to you. Making a phone call to the plaintiff’s lawyer doesn’t extend the deadline. The clock is not stopped by negotiations. Even some objections are lost if you don’t raise them in time. So be careful not to lose your case just because you took the wrong step, and talk to a lawyer promptly.

Register with the Attorney General

In Colorado, debt settlement companies must register with the Attorney General. The fee is $5,000 to register, and a renewal fee is paid every year after that. Ask your debt relief company whether they are registered with the Colorado Attorney General.

The FTC banned advance fees for telephone sales. By federal law, a debt relief firm can’t take a fee until a debt is settled, you agree, and you make one payment to the creditor. Be suspicious of companies who ask for a fee before accomplishing anything. Lawyers aren’t automatically exempt from that FTC rule, but firms that meet you face to face before signing you up likely won’t be subject to much of that rule.

It would be easy if the internet could rank Denver companies correctly, but even five star ratings don’t mean these companies are registered, or take a fee that is legal, or would be willing to appear for you in court, for your company and its owners, any time a lawsuit is filed.

Hire a Lawyer to Defend

The complaint may be different from what you signed, was repaid, or what you currently owe. Ask a lawyer to compare what you got, repaid, and the complaint you got. Don’t assume a number is correct because it’s in the lawsuit.

Ask about reconciliation: First, was your income down? Second, did you ask the company if your payments could be changed? Calling something a loan or advance doesn’t settle whether it’s a loan or an advance. A fixed debit schedule or guarantee alone don’t settle whether the financing is enforceable.

It’s possible to have a lawsuit filed against you in another state. Your lawyer should review how the papers were served. You should hear an opinion on the court’s jurisdiction over each party, where an answer should be filed, the law that governs, and where if anywhere arbitration could happen. And it takes more than just being out of state to get a case dismissed. Starting in 2019, New York says a creditor won’t be able to use a confession of judgment against a debtor unless the confession is filed in a county where the debtor resides.

A lawyer can do more than file a motion to dismiss. The lawyer will look for ways to push back on claims. For instance, depending on what’s been alleged, a lawyer for the business might do that with motions, use discovery to find what support the accusation has, oppose judgment and serve offers to settle. The schedule could keep moving while that motion is pending. So other deadlines may be coming.

If you were named personally: See whether there’s a personal guarantee, and what it says triggers the liability. But be aware that there may be two defenses to consider: the business’s and the owner’s.

Get a copy of the actual UCC lien itself, the letter to customers, or the court order that allows funds to be withheld. These things get mixed up with each other, but there are differences between a UCC statement, a restraining notice, a judgment, a subpoena, and an assignment notice. Demands can show you’re in trouble, but don’t show the claims themselves are valid. Just hiring a lawyer or sending a letter doesn’t automatically stop a money seizure, and you need to avoid the risk of making things worse. Even if you’re planning to fight, don’t change bank accounts, redirect customer receipts or move other assets without getting legal advice.

If a judgment is entered or a confession of judgment has already been filed, you need to get a copy of what the court said and get it reviewed right away. Just because it’s filed doesn’t mean you can never challenge it. Whether relief is possible and what steps to take isn’t something to put off. And if you challenge it, the court doesn’t have to stop the collection while you do it.

A Good Settlement

You shouldn’t have to take a creditor’s word for it about what a lawsuit settlement says. The written deal needs to state the total, the schedule of when payments will be made, who is involved and which claims are covered, and guarantee the releases and the dismissal of the case. It should also say what happens after a payment is missed.

A good settlement brings your overall balance down, not just makes the monthly cost of the case lower. A deal with one creditor won’t tie up another’s hands. Keep track of each agreement separately.

MCA funders aren’t always right. The FTC settled a lawsuit against Yellowstone Capital, an MCA funder, that is said to have misled business owners. It agreed to pay $9,837,000. In June 2022, some Yellowstone customers were told they’d get 51 cents for each dollar lost. And the FTC’s RCG Advances lawsuit returned a judgment of $20.3 million against one individual, along with a ban on working in the MCA industry. Be careful about taking the funder’s word about everything.

Instead of settling, a small business can sometimes be reorganized by filing a Chapter 11 bankruptcy. There is Subchapter V Chapter 11, which a small business owner can use if its total debts are $3,424,000 or less. Filing costs $1,738.

Right away, save the complaint and summons, and the envelopes they arrived in, and the bank’s warnings. Note who dropped by and who signed for the papers. Get a professional to review all of it promptly, to see what will happen next, what deadlines you’re facing and what needs to happen. Find out whether it’s just your business or are you also in court as a person.