Best Business Debt Settlement Companies in New Jersey should be able to tell you that New Jersey licensed lawyers are generally the only ones who may do business debt settlement, confessions of judgment are prohibited here, the criminal usury limit is 30% (50% for LLCs, Corporations, and LLPs), and a Guarantor does not keep much of anything after a judgment.
To our knowledge, there is no data we could publish to support a best list. Instead, here is information about New Jersey law, not found on most providers’ web pages, to help you evaluate them.
Are business debt settlement companies legal in New Jersey?
Clearly so only if they are New Jersey lawyers. Under the New Jersey Debt Adjustment and Credit Counseling Act, only licensed non-profit agencies may act as debt adjusters, meaning anyone who, for compensation, acts as an intermediary between a debtor and his creditors to settle or alter the debtor’s debts. N.J.S.A. 17:16G-2. Acting as a debt adjuster without a license is a crime in the fourth degree pursuant to N.J.S.A. 2C:21-19(f).
The Act defines a Debtor as an individual or individuals. N.J.S.A. 17:16G-1. So for debts of your LLC alone, a for profit company might not need a license. But if you have guaranteed the debt, you are an individual, and the Act applies to you. The courts have not yet decided the question, so ask any company not composed of New Jersey lawyers why it needs no license. Recently, the Appellate Division held that all lawyers lawfully practicing in New Jersey are exempt from the Act. See Anchor Law Firm, PLLC v. State, App. Div., May 9, 2025.
Can a Merchant Cash Advance Funding Company obtain a Confession of Judgment in New Jersey?
Not generally. The law provides that “No provider of business financing shall extend business financing to a concern in this State that contains a judgment by confession,” and a provision that violates it “shall be invalid and unenforceable against any concern.” N.J.S.A. 2A:16-9.1. Business financing expressly includes a cash advance, so even if you sign a contract selling your accounts receivable, you cannot have a confession of judgment in New Jersey. Even with a Warrant of Attorney, judgment requires a motion on notice to you and an affidavit of the true consideration, the amount justly due, and that it is not confessed with a fraudulent intent. See Rule 4:45-2 of the New Jersey Court Rules.
However, a funder may sue you in another State and file that judgment with the Clerk of the Superior Court, where it has the same effect as a New Jersey judgment. N.J.S.A. 2A:49A-27. The creditor’s affidavit must state if the judgment is by default. The Clerk must mail you a notice of the filing, and no execution may issue for 14 days after the judgment is filed. N.J.S.A. 2A:49A-28. Your provider should know if this has happened and use the same defenses and stays available against a New Jersey judgment. If your contract provides for New York law, see our page on Best Business Debt Settlement Companies in New York.
Does New Jersey usury law help if your business is an LLC?
Not generally. In New Jersey, lending at more than 30% per annum is criminal usury. N.J.S.A. 2C:21-19. Loans to Corporations, LLCs and LLPs may go up to 50%, and above 50% is a second degree crime. But a Corporation, LLC or LLP may not plead usury as to its own obligation. See N.J.S.A. 31:1-6. Whether an MCA is a loan is a complicated question; see our page on whether a Merchant Cash Advance can be Usurious.
In fact, in January of 2023 the State Attorney General announced a $27.375 million settlement with MCA provider Yellowstone Capital and related companies, alleging their advances were predatory loans disguised as a purchase of receivables.
What property can the MCA funder go after personally in New Jersey?
More than in most states! That is why settling before judgment matters. Here’s a quick chart of New Jersey’s exemptions:
| Item | Can they take it in New Jersey? |
|---|
| My home | No homestead exemption, and they can execute on real estate for judgments obtained in the Superior Court. |
| Personal property | $1,000 plus clothing. |
| Wages | Only 10%, although the Court can order more if your income is more than 250% of the poverty level. |
| Home owned with a spouse as tenants by the entirety | Neither of you can sever or alienate your interest during the marriage without the other. |
A smart provider will ask how your home is titled at the outset so they can negotiate as aggressively as possible.
How should you vet a business debt settlement company in New Jersey?
- Always ask who will be representing you. If it’s a lawyer, is he admitted to practice in New Jersey?
- If not, does the company understand the Debt Adjustment Act, and will they explain it in writing?
- Do they know that New Jersey does not permit a confession of judgment in a contract to be enforced against you? See N.J. Rev. Stat. 2A:16-9.1.
- Is someone watching the Superior Court clerk for judgments entered against you?
Be wary of companies that guarantee a percent reduction, since they cannot know what your funder will accept, or that post reduction figures without sources. And be wary of any site suggesting New Jersey has passed an MCA disclosure law (APR, etc.)
New Jersey MCA Settlement FAQ
Does New Jersey have a law requiring MCA providers to disclose the same things as they would for a loan?
No, whatever some providers’ sites say. S1760 and A4580 were introduced and referred to the Senate Commerce Committee on January 13, 2026, and the Legislature’s site shows no further action.
Can my New Jersey LLC plead usury as a defense?
No. Civil usury cannot be pleaded by a corporation, LLC or LLP as to its own obligations (N.J.S.A. 31:1-6), though the criminal lines (30% for individuals, 50% for entities) remain; ask an attorney whether they apply to MCAs.
Has the State of New Jersey ever taken action against an MCA funder?
Yes. In January of 2023, the State Attorney General announced a $27.375 million settlement with MCA provider Yellowstone Capital and related companies, which forgave all New Jersey customers’ balances (estimated at $21.75 million), required dismissal of pending legal actions, and required notice before new ones.
What court will hear a large MCA case the funder files against me in New Jersey?
If the amount in controversy is at least $200,000 and the parties designate it complex commercial, it goes to the Superior Court’s Complex Business Litigation Program, with a designated judge in each vicinage.