Bankers Healthcare Group or BHG is a creditor that primarily provides funding for the healthcare profession, including doctors, nurses, dentists and medical centers. The loans provided are usually to a business or self-employed individual and for sums that are often more that six figures large. The business to business transaction allow Bankers to forego the general consumer protections involved when defending a consumer debt scenario. There is almost always a personal guaranty involved which makes these more complex and aggressive lawsuits to defend against. The personal guarantee allows BHG to pursue the individual doctor or medical professional directly if the practice or health center is to become defunct. Bankers almost always retains the collection law firm of Christopher Cali to collect on and sue businesses who default on their loans but recently we have seen a new law firm, Byrne, Costello and Pickard retained on some of these matters.
Like many, collection matters, default judgments are a common concern to be weary of. A default judgment can be entered if an answer is not submitted within the 20-30 day window allowed. If a judgment is entered then judgment interest accrues which can quickly expand on larger amounts that are usually seen with BHG. A bank levy is the most common form of judgment enforcement that we encounter with Bankers Healthcare aside from a levy on real property or some form of other property. It is a rare occurrence but we have seen instances where a creditor like Bankers moves to levy expensive medical or dental equipment including examination chairs, x-ray machines and the like. Submitting an initial answer with defenses prevents a default judgment and keeps the burden on Bankers to prove their case. This includes proving that the amount is correct and appropriate and generally providing proof of the debt as a whole through the discovery process.
Although there are legitimate defenses to assert against Bankers, a smart strategy in every defense matter is to engage in negotiation about a potential settlement to resolve the matter. This prevents the further costs associated with litigation and alleviates the risk involved in proceeding toward motions and trial against BHG. From experience, we have been able to obtain settlements that reduce the total balance of the debt involved from anywhere between 20%-60% off of the debt. A lump sum generally provides a better deal but an interest free payment plan is something that is also obtainable along with a reduction of the balance. Sometimes all client’s need is an affordable interest free payment plan with a reasonable reduction.