Find out what to look for in the best business debt settlement companies in Montana and learn how Montana’s recording requirement for the homestead, usury law, and the elimination of confession clauses make negotiating with merchant cash advance funders easier and harder.
There’s no state agency that ranks or licenses business debt settlement companies in Montana. Instead, this page tells you about relevant Montana statutes to keep in mind when considering hiring remote debt settlement companies.
Does Montana license business debt settlement companies?
Montana doesn’t license debt settlement companies. The Montana legislature repealed its debt adjusting law, MCA 31-3-201 to -203, in 2005 and hasn’t passed a replacement. You won’t find business debt settlement companies in a Montana state database. Montana also hasn’t passed a law requiring that non-bank lenders and alternative funding companies disclose all costs and fees when funding businesses. Venable LLP’s March 2026 survey of state commercial financing disclosure laws summarizes them, but Montana isn’t on the list of states (California, Connecticut, Florida, Georgia, Kansas, Missouri, New York, Texas, Utah and Virginia). The FTC’s advance fee ban in the Telemarketing Sales Rule applies only to consumer debt relief services. So you’ll have to do your own vetting.
How much of your home does Montana protect if you signed a personal guarantee?
Montana increased the homestead cap to $350,000 in 2021. The cap rises 4% every calendar year since then, which comes to about $425,000 in 2026 (MCA 70-32-104). But you need to record a declaration of homestead with the clerk of the county where your home is located for the homestead to be effective (MCA 70-32-105). Any mortgages recorded before you file your declaration are still enforceable against the homestead (MCA 70-32-202). If you co-own the property, you can only exempt your proportionate share. The Montana homestead can also be a mobile home. Proceeds from the sale or insurance of the homestead are exempt for 18 months as long as they are traceable (MCA 70-32-216).
Montana law doesn’t provide many other exemptions from execution. Some that business owners may be able to use include the following:
| Item | Montana exemption amount |
|---|
| Household goods, firearms, animals, feed and crops | $7,000 but not more than $1,250 per item (MCA 25-13-609) |
| One vehicle | $4,000 |
| Tools of the trade | $4,500 |
| IRAs, qualified retirement plans, health savings accounts, unmatured life insurance | Not limited (MCA 25-13-608) |
| Wages | Subject to garnishment, but only the lesser of 25% of your disposable earnings or the amount that exceeds 30 times the federal minimum wage (MCA 25-13-614) |
See our page on whether MCA lenders can come after your personal assets for more on how MCA funders might reach your personal property.
Does Montana usury law apply to merchant cash advances?
Montana’s usury law doesn’t exempt business transactions. The cap is the greater of 15% or 6% above the prime rate, set in a written agreement (MCA 31-1-107). A lender that charges more forfeits double the interest (MCA 31-1-108). The borrower must make a written demand and then has two years to sue to recover double the interest paid. There are two problems to overcome, however. First, since a merchant cash advance is written as a purchase of future receivables, a court will have to recharacterize the transaction as a loan to apply Montana’s usury law. Second, many MCA contracts are subject to New York law, and it’s unclear whether Montana courts will apply Montana’s usury law in the face of the choice of law provision. Regulated lenders (banks, bank subsidiaries and others) and a finance operation that “finances transactions between merchants” are exempt (MCA 31-1-112). Whether MCA companies fit that exemption is untested.
How will out-of-state MCA funders enforce their MCA in Montana courts?
Suing in another jurisdiction (like New York) and then filing the judgment in Montana is the primary means of enforcement. A confession of judgment clause is “illegal and void” in Montana courts under MCA 28-2-709. Also, New York closed its courts to out-of-state entry of confessions of judgment in 2019 under CPLR 3218; see our in-depth review of out-of-state confessions of judgment.
Once MCA funders have their judgment, they will file it with the clerk of any district court in Montana, and it will be treated like any other Montana judgment, subject to defenses and motions to reopen, under the Uniform Enforcement of Foreign Judgments Act (MCA 25-9-503). An affidavit must be filed and notice mailed to you by certified mail, and the funder may not receive any proceeds of execution until 30 days after the mailing (MCA 25-9-504). MCA 25-9-505 allows you to seek a stay of enforcement upon posting security. Finally, MCA 25-9-205 lets the funder collect interest at the contract rate if the contract sets one.
How can I choose a remote MCA settlement provider if I’m in a rural area of Montana?
Business owners in Wyoming and North Dakota also have this issue. You must find a provider that can act fast in the 30 days you have. Ask the settlement company:
- Do they have an in-house or retained licensed attorney who can act fast in the Montana district courts or in New York? Ask for the attorney’s name.
- Did they ask if you have a recorded homestead declaration, and when your mortgage was recorded?
- Did they check if the funder is a bank subsidiary or other regulated lender, since usury defenses may not apply?
- Will they build a payment plan around your monthly receipts so daily ACHs stop straining your account?
- If a line of credit at a Montana bank is part of the stack, can they get the workout terms in writing? MCA 31-1-116 makes an unwritten promise to modify a regulated lender’s commercial loan over $100,000 unenforceable.
Check out How Much Does Business Debt Settlement Cost? to learn more about the fees these companies charge.
Frequently Asked Questions
Do I have to record anything to claim a homestead exemption in Montana?
Yes, Montana does not have an automatic homestead exemption. You must sign, acknowledge and record a declaration of homestead with the clerk of the county where your home is located.
Can New York MCA funders get a confession of judgment in Montana?
Montana law declares any contract provision allowing confession of judgment illegal and unenforceable. Also, New York only allows confession of judgment against New York residents. The New York MCA funder must sue you and then file the judgment in any Montana district court.
How long do I have after the judgment is filed in Montana?
The MCA funder must file an affidavit and mail you certified notice, and you have 30 days before any money taken from you via execution can be paid over to the funder.
Does Montana have a commercial financing disclosure law?
No. Montana does not have one, and its old debt adjusting statute was repealed in 2005.