The Short Answer

In Florida, closing a business or the owner’s death does not automatically erase a merchant cash advance (MCA) obligation. Whether repayment is still owed usually depends on the contract terms (including any personal guaranty) and, if the owner dies, whether the MCA company properly files a timely creditor claim in the Florida probate estate.

What Florida Law Says

When an individual dies owing debts, creditors generally must assert those debts through the probate claims process. If the creditor misses Florida’s probate deadlines, the claim can be barred—meaning the estate (and often the beneficiaries) may not be legally responsible for paying it, even if the debt was otherwise valid.

The Statute

The primary law governing this issue is Fla. Stat. a7 733.702.

This statute establishes that most claims against a decedent’s estate are not binding unless they are filed in the probate proceeding within the required claims period (generally tied to publication/service of the notice to creditors), subject to limited exceptions.

Why You Should Speak with an Attorney

While Florida’s probate statutes provide the framework, applying them to an MCA situation is rarely simple. Legal outcomes often depend on:

• Strict Deadlines: Probate creditor claims are time-sensitive under Fla. Stat. a7 733.702, and there is also a hard outside limit on estate liability in many situations under Fla. Stat. a7 733.710.
• Burden of Proof: MCA companies often argue their agreement is a “purchase of receivables,” while business owners argue it functions like a loan; what you signed (and how payments were structured) can control enforceability and damages.
• Exceptions and Who Is Liable: If there is a personal guaranty, the MCA company may pursue the guarantor separately; if there is no guaranty, the creditor may be limited to business assets and/or a properly filed probate claim. Secured claims may also be enforced against collateral even if other probate deadlines apply.

If you are dealing with an MCA after a closure or a death, the risk is not just “owing money”—it’s missing a defense, mishandling a probate claim, or triggering personal liability that could have been avoided with proper legal review.

For more background on the probate side, you may find these helpful: how creditor claims work in a Florida estate and addressing creditor claims before selling estate property.

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Disclaimer: This article provides general information under Florida law and does not create an attorney-client relationship. Laws change frequently. For legal advice specific to your situation, please consult with a licensed attorney.