If you're looking for the best business debt settlement companies in Philadelphia to negotiate your merchant cash advance, there are a few things to watch out for. First, they should be able to get a lawyer licensed in Pennsylvania on the case within 30 days of notice of a confessed judgment. Second, they should know how the Commerce Program works in Philadelphia. Third, they should know how money must be held if they're going to hold it in Pennsylvania.
These issues aren't generally included in rankings, but are critical in Pennsylvania, where a funder can use confession of judgment instead of suing you and the timelines are much shorter than the 24 to 48 months companies use to negotiate consumer debt.
How Is Confession of Judgment Entered in Philadelphia?
A funder's lawyer can file a complaint in confession with the Office of Judicial Records (formerly Prothonotary) in Common Pleas and get a judgment against you without a hearing or any chance to answer. That's allowed under Pa.R.C.P. 2951 and subsequent rules, which let the funder's attorney confess judgment on your behalf. While confession of judgment cannot be used against a natural person in a consumer credit transaction, a merchant cash advance and personal guaranty are both commercial transactions.
You won't see a confessed judgment in Philadelphia Municipal Court because 42 Pa.C.S. 1123(a)(4) provides that "[j]udgments by confession shall not be entered in the municipal court." So, whatever the amount, a Philadelphia confessed judgment lands in the Court of Common Pleas.
How long do you have to challenge a confessed judgment in Philadelphia?
You generally have 30 days from the date you are served with written notice to file a petition to strike or open the judgment. Under Rule 2959(a)(3), a petition that is not timely filed must be denied unless you can show compelling reasons for the delay. The clock runs from when you are served with notice, not from entry of the judgment.
Rule 2959 also requires every ground to strike or open in one petition, and under Rule 2959(c) you waive all other defenses. Since the judgment lien and bank levy remain unless the court grants a stay, make sure your petition is strong. If you've been served, check out our guide to what to do after being served with a confession of judgment.
Where will a Philadelphia MCA dispute be heard?
According to the court's civil program page, all motions relating to a confessed judgment are heard in the Commerce Court, which also handles other commercial cases unless they fall under compulsory arbitration. Here is a quick guide:
| Situation | Where It Will Be Heard | Additional Information |
|---|
| A judgment was confessed against me for any amount | Court of Common Pleas; motions assigned to the Commerce Court | Judgments by confession cannot be entered in Municipal Court |
| The funder is suing me for $50,000 or less | In Compulsory Arbitration at 1880 JFK Blvd. | A panel of three attorney arbitrators hears it; you can appeal for a trial de novo under 42 Pa.C.S. 7361. |
| The funder is suing me for more than $50,000 | Commerce Program, if your case fits the rules | Expedited, Standard, or Complex tracks target trial at 13, 18, or 24 months. |
| The funder sued me in New York and got a judgment | In the Court of Common Pleas under 42 Pa.C.S. 4306 | Becomes a lien when filed; the same reopening and stay procedures apply. |
Commerce cases get a case management conference at around 3 months and a mandatory settlement conference with a judge pro tempore. Individuals like guarantors can be parties if the dispute is commercial. The rules for Commerce cases filed on or after January 1, 2026 are in Administrative Docket No. 12 of 2025, which lists commercial loans "including judgment confessed thereon" as program cases.
What Questions Should I Ask a Philadelphia Debt Settlement Company?
- Who will sign the court documents? Your LLC will need a Pennsylvania-licensed lawyer to file the Rule 2959 Petition, ideally within a few days.
- Have they litigated in the Philadelphia Commerce Program, including the case management memorandum and the judge pro tempore settlement conference?
- If a writ of execution has been served on your bank, will they file a Rule 2967 Petition with the Sheriff? Under Pa.R.C.P. 2958.3 that gets a hearing within 3 business days and stays execution.
- Will they take your money and pay the funders, or will you own the money in a dedicated account?
Pennsylvania's Debt Management Services Act licenses debt settlement for consumers, meaning individuals owing money for personal, family, or household expenses, so a company that deals only with MCAs usually has no Pennsylvania license. However, Pennsylvania's debt pooling statute is not limited to consumers. 18 Pa.C.S. 7312 provides that it is a misdemeanor of the third degree for anyone other than Pennsylvania lawyers, certain non-profits, or licensees to make it their business to receive periodic payments from debtors and distribute them to multiple creditors. We found no case law on whether a dedicated account owned by the debtor, or other structures, avoid the statute. Ask any provider to explain why their model is lawful under it. On cost, see How Much Does Business Debt Settlement Cost? On usury, garnishment, and exemptions statewide, see Business Debt Settlement in Pennsylvania.
Frequently Asked Questions for Business Debt Settlement in Philadelphia
When does the 30-day clock start on a Philadelphia confessed judgment?
The 30 days runs from service of the written notice of the Confessed Judgment. A later petition must be denied under Pa.R.C.P. 2959(a)(3) unless you show compelling reasons for the delay.
Will filing a Rule 2959 Petition unfreeze my bank account in Philadelphia?
No. Pa.R.C.P. 2959(f) provides that the lien of the judgment and any levy or attachment will remain during the pendency of the Rule 2959 Petition unless the Court grants a stay. If the Sheriff served a writ with a Rule 2967 Petition attached, filing it with the Sheriff gets a hearing within 3 business days and stays execution, but the hearing is limited to whether your waiver was knowing and voluntary.
My funder is in New York. Can it still come after me in Philadelphia?
Yes. Although a funder cannot file a Confessed Judgment in New York against a Pennsylvania resident under CPLR 3218(b) after August 30, 2019, the funder can sue you in New York and file the New York judgment with the Court of Common Pleas of Philadelphia County. Once the New York judgment is filed in Philadelphia under 42 Pa.C.S. 4306, it will be a lien on your property.
Can my business use the new debt collection diversion program in Philadelphia?
No, the new Consumer Credit Card Collection Diversion Pilot Program is only for consumer credit card collection cases and specifically excludes business or commercial defendants. See General Court Regulation No. 2026-01 (effective April 1, 2026).