I Exit Owners Cleanly Before Dissolution.
Owners closing businesses ask what happens to MCA debt, and I answer bluntly: nothing good without a plan. Debts survive closure. Guarantees survive dissolution. Collections continue personally. Here's the clean-exit playbook.
Debts get inventoried first, every dollar. All MCA balances with payoff figures, plus vendors, landlords, taxes, equipment liens. I build the master schedule. Scheduled exits strategize. Unscheduled closures bleed. Inventory completely.
Guarantees get parsed second, word by word. Scope, caps, conditions, survival clauses extending past dissolution. Most guarantees explicitly survive closure. I read survival language closely. Surviving guarantees pursue. Pursued guarantors pay. Parse carefully.
Operating leverage gets used third, before dissolving. Open businesses negotiate better than shells: revenue visible, futures credible. I settle while trading. Trading leverage discounts. Discounted deals close. Leverage operations.
Dual releases get demanded fourth, categorically. Company and guarantor freed in single agreements with concurrent execution. Partial releases leave personal exposure. I refuse company-only deals. Refused partials protect. Protected guarantors rest. Demand both.
Wind-downs get ordered fifth, by priority. Secured creditors first, priority claims next, general unsecured after, owners last. MCA funders slot by perfection status. I supervise distributions. Supervised wind-downs defeat fraud claims. Defeated claims stay dead. Order strictly.
Asset sales get documented sixth, meticulously. Fair-value appraisals, arm's-length buyers, proceeds traced into priority payments. Insider sales at discounts invite conveyance attacks. I paper every transaction. Papered sales survive. Surviving sales close. Document relentlessly.
Transfers get reviewed seventh, historically. Two years of pre-closure payments and asset moves screened for preferences and fraudulent conveyances. Legitimate operations documented contemporaneously. I review before advising closure. Reviewed histories clean. Clean histories dissolve. Review deeply.
Tax consequences get planned eighth, early. Cancellation-of-debt income on forgiven balances, insolvency exclusions evaluated, CPA coordination before deals fund. Settlements structured for tax efficiency. I plan with accountants. Planned taxes minimize. Minimized taxes save. Plan jointly.
Dissolutions file ninth, formally. State certificates, tax clearances, final returns, creditor notices where required. Formal closure beats abandonment decisively. Abandoned entities haunt owners. I file completely. Complete filings end. Ended entities rest. File formally.
Confirmations get collected tenth, comprehensively. Release agreements, UCC-3 proofs, satisfaction filings, zero-balance letters: every closing document archived. I chase paper after funding. Chased paper arrives. Arrived paper protects. Collect everything.
Fresh starts get protected eleventh, deliberately. New ventures structured cleanly, old liabilities confirmed dead, credit rebuilt systematically. Protected restarts thrive. Haunted restarts fail. I guard the future. Guarded futures grow. Grow freely.
Closing with debt, exit clean: inventory, parse, leverage, demand, order, document, review, plan, file, collect, protect. Plan your exit before dissolving anything. One more thing: never dissolve first. Dissolution surrenders. Settlement frees. Settle first.