Merchant Cash Advances in Bankruptcy: True Sale or Loan, Effect on Post-Petition Receivables, Liens, and More
A live 90-minute CLE video webinar with interactive Q&A
This CLE webinar will review how merchant cash advance (MCA) funding works, how it differs from factoring and other traditional forms of financing, whether the debtor's obligations are secured in bankruptcy, how the debtor's obligations and the merchant's rights under MCA agreements are put at issue in bankruptcy, and how bankruptcy courts are administering, discharging, or restructuring MCA obligations.
Outline
- Why MCA funding is attractive to some debtors
- How MCA differs from traditional loans
- Characterization as true sale or loan
- Bankruptcy treatment of MCA in bankruptcy
- Property of the estate
- Cash collateral
- Automatic stay
- Post-petition receivables
- Eligibility
- Executory contract issues
- Avoidance actions and preferences
- Discharge
- Priority disputes
- Claim allowance and objection
Benefits
The panel will review these and other significant issues:
- How do MCAs differ from factoring or traditional ABL?
- On what basis will courts recharacterize an MCA as a loan?
- Does the MCA lender hold an interest in property of the estate?
- Does the MCA lender hold a claim?
- Is the MCA lender vulnerable to preference claims?
Faculty
Brittany B. Falabella
Partner
Hirschler Fleischer
Ms. Falabella's practice focuses on providing comprehensive representation to debtors, creditors, and chapter 7... | Read More
Ms. Falabella's practice focuses on providing comprehensive representation to debtors, creditors, and chapter 7 trustees throughout the bankruptcy process. To complement this, she is also highly skilled in advising clients regarding financial restructuring. Additionally, Ms. Falabella's practice includes corporate litigation, contracts, licensing agreements, and creditors' rights.
Close
Sean P. Williams
Partner
Levenfeld Pearlstein
Mr. Williams is a partner in the Financial Services and Restructuring Group. He assists debtors, creditors,... | Read More
Mr. Williams is a partner in the Financial Services and Restructuring Group. He assists debtors, creditors, creditors’ committees, and purchasers of assets in bankruptcy courts throughout the nation. He represents purchasers and sellers in out-of-court restructurings and distressed asset sales. He also has experience in general commercial litigation matters, with substantial experience prosecuting and defending large preference and fraudulent transfer actions in bankruptcy cases. Mr. Williams has represented debtors in courts nationwide and confirmed plans in the United States Bankruptcy Courts for the Central District of Illinois, Northern District of Illinois, and Central District of California.
CloseEarly Discount (through 09/05/25)
Cannot Attend September 11?
Early Discount (through 09/05/25)
You may pre-order a recording to listen at your convenience. Recordings are available 48 hours after the webinar. Strafford will process CLE credit for one person on each recording. All formats include course handouts.
