Best business debt settlement companies Mississippi should get to work before a MCA funder enrolls an out of state judgment with a Mississippi circuit court clerk and garnishes a company's bank account.
How does a merchant cash advance funder collect from a Mississippi business?
Most merchant cash advance contracts require that disputes be litigated in New York State Supreme Court. After New York amended its confession of judgment statute, CPLR 3218, in 2019, a confession of judgment could only be filed in the county where a defendant resided or carried on business, so a MCA funder will usually sue a Mississippi business owner in New York State Supreme Court instead.
A Mississippi court must give full faith and credit to the New York judgment in accordance with 28 U.S.C. 1738. So the fight belongs in the New York lawsuit. See What to do if my MCA funder sues me?
What happens when the MCA funder files the New York judgment in Mississippi?
The funder can file an authenticated copy of the judgment with the circuit court clerk of any county in Mississippi. It then has the same effect as a Mississippi judgment. Miss. Code 11-7-303. The funder files an affidavit showing the business owner's last known address, and the clerk mails notice there.
It cannot be executed until 20 days after it is filed with the circuit court clerk. Miss. Code 11-7-305(3). (It takes 30 days in Alabama. See Best business debt settlement companies in Alabama.) Thereafter, the circuit court clerk can issue a writ of garnishment upon written suggestion that someone, including a bank, holds the debtor's property. Miss. Code 11-35-1. An enrolled judgment is a lien on property only in the county where it is enrolled. Miss. Code 11-7-191. In a county with two judicial districts, the lien covers only the enrolling district. The funder will probably enroll wherever you have real estate or bank accounts, possibly in more than one county.
A debtor keeps the defenses he would have against a Mississippi judgment. If a debtor appeals in the rendering state and posts the security that state requires, the Mississippi court must stay enforcement. Miss. Code 11-7-307. Mississippi appellate courts have also considered Rule 60 motions to set aside an enrollment.
When must the MCA funder enroll the New York judgment in Mississippi?
Against a Mississippi resident, a funder has three years from the out of state judgment to enroll it; against non-residents, seven. Miss. Code 15-1-45. Miss. Code 11-7-303 expressly makes enrollment subject to 15-1-45, and Mississippi appellate courts have applied the three-year rule to enrollments against residents. However, in National Enterprises v. Valsamakis, 879 So. 2d 523 (Miss. Ct. App. 2004), the Mississippi Court of Appeals held that the three-year limitation is an affirmative defense that must be timely asserted. See Can I settle an MCA if there is already a judgment?
Does Mississippi usury law apply to a merchant cash advance?
Generally, no. Miss. Code 75-17-1(5) allows any finance charge agreed to in writing when the original principal exceeds $2,000, and bars any claim or defense of usury on that agreement. Any usury defense for a merchant cash advance that is actually a loan comes from the law governing the agreement, usually New York's, and must be asserted in the New York case. Mississippi has not passed a commercial financing disclosure law as of March 2026, according to Venable's list of state disclosure laws.
What can a Mississippi guarantor keep if the funder wins?
As a personal guarantor in Mississippi you keep certain exempt items. A business entity, like an LLC or corporation, has no personal exemptions, so the funder can go after your business's operating account. The personal exemptions include:
| Exemption | How much | Mississippi Code |
|---|
| Your homestead that you own and occupy | Up to $75,000 in value, less liens and taxes, on up to 160 acres | 85-3-21 |
| Tangible personal property, including vehicles, tools of the trade, household goods and cash on hand | Up to $10,000 in total | 85-3-1 |
| Mobile home used as your residence | Up to $30,000 in value | 85-3-1 |
| Retirement plans, IRAs, Roth IRAs, Health Savings Accounts, 529 plans | Exempt | 85-3-1 |
| Additional exemption for residents 70 and older | An additional $50,000 | 85-3-1 |
| Earned income credit and federal or state tax refunds | Up to $5,000 each | 85-3-1 |
| Wages | Exempt for 30 days after service of the writ; then garnishment is capped at the lesser of 25% of disposable weekly earnings or the amount over 30x the federal minimum hourly wage | 85-3-4 |
How do you pick the right Mississippi business debt settlement company?
Pick the company that can help you within the timeframe that you have. Ask:
- Will they watch the New York docket so you don't get a default judgment?
- Will they figure out how long the funder has to enroll (generally 3 years after the New York judgment) and tell you when to raise that deadline?
- Can they get a deal done within 20 days of the funder enrolling its judgment, before a writ of garnishment hits your bank accounts?
If they are talking about Mississippi usury laws, they don't know what they are talking about, because 75-17-1(5) bars that defense.
There is a debt settlement law in Mississippi, called the Debt Management Services Act. It talks about "consumers" and exempts attorneys, certified public accountants, and banks, so it is unclear if a company that only does business debt settlement needs to be licensed in Mississippi. Learn more about the cost of business debt settlement here.
Frequently Asked Questions
Can a New York funder garnish my Mississippi bank account?
Yes, once they have sued you in New York, gotten a judgment, and enrolled it with a circuit court clerk in Mississippi. The judgment creditor then has to wait 20 days before the clerk can issue an execution, after which the clerk can issue a writ of garnishment to your bank on the creditor's written suggestion that you have money there.
Can a funder take my house in Mississippi?
If you own and live in it, your home is exempt up to $75,000 in value, on up to 160 acres, after existing liens and taxes are taken out. Value above that can be reached through a judgment lien in the county where the New York judgment was enrolled.
Does a Mississippi debt settlement company need a state license?
Mississippi licenses debt management services through the Department of Banking and Consumer Finance. However, the statute is written regarding "consumers" and excludes attorneys, CPAs, and banks, so it is unclear whether a company that only does business debt settlement needs that license.
Does Mississippi have a merchant cash advance disclosure law?
No. As of March 2026, Mississippi has no commercial financing disclosure law.