I am a small business owner and MCAs have turned into daily withdrawals, overdrafts, and constant stress. Even when money comes in, it disappears before I can catch up. I have seen people mention Chapter 13 and bankruptcy, but I do not know if MCA debt is treated differently because they call it a purchase of receivables. Is bankruptcy actually an option?
Bankruptcy can be an option, but MCA cases need careful review. The answer depends on who owes the debt, whether the business is an LLC or sole proprietorship, whether you signed a personal guarantee, whether there is a UCC lien or judgment, and what assets and receivables exist. Some MCA funders argue they purchased receivables instead of making a loan, which can complicate the analysis. That does not mean bankruptcy is off the table. It means you should speak with a bankruptcy attorney who understands business debt and MCA contracts before moving money, closing accounts, or defaulting further.