Sometimes, business obligations add up and a company may find itself unable to keep up with all its required debt-related payments. Because our firm is an experienced consumer protection practice in New York, the Law Office of Simon Goldenberg, PLLC receives contacts from business owners around the country who are looking for answers and assistance when they are being sued by Bankers Healthcare Group, also known as BHG Money.
There are a lot of reasons that businesses may be facing claims or a lawsuit from BHG or another lender, and such problems won’t go away by ignoring them. Contact our experienced debt resolution firm right away to begin safeguarding your company’s interests and your personal interests as well. We are ready to offer guidance and help to find your way through this challenging situation and so that you and your company can regain stability before moving forward.
Business Ups And Downs
There are plenty of circumstances that can make it difficult for borrowers to keep up with their loan payments, including normal business cycles with more active times and a steady flow of income followed by lulls in business demand, or unexpected business setbacks due to increased competition within an industry or a jump in the costs of doing business. If you are a business owner, you might be struggling to cope with equipment failures or increased expenses that have put a drain on your business income. Additionally, supply chain challenges or local regulations might be throwing a wrench into what you’d expected to achieve this year.
If circumstances have arisen that have placed you in a position wherein you may not be able to meet all your business obligations, it is crucial to be proactive and face the challenges head-on. You need to be open and transparent with BHG Money about your financial situation and do your best to work with them to find a solution that will work for both parties.
Questions And Concerns About Business Loan Lawsuits
If you have received a notice that your business is being sued or is facing imminent legal action concerning a business loan from BHG Money or a similar lender, you probably have a lot of questions. You might be wondering things like:
- What is the basis of the lawsuit and all the legal claims that are set out in the papers I’ve received notifying me of the court case?
- Do I owe the full amount that the lender is claiming in these legal papers and if so, do I have to come up with a big sum of money to pay it all at once?
- What defenses might my business have against the claims?
- Will I have to travel to New York to defend my business in court?
- Is it possible to negotiate a lower settlement and potentially a payment plan to resolve the claims without going to court?
An experienced consumer rights lawyer can provide the answers to these and other important questions so that you can make truly informed decisions about your rights and options.
Types Of Claims
Creditors like BHG Money tend to throw everything they possibly can at a debtor when it comes to filing a lawsuit seeking to collect on a business loan. As you review the legal documents you’ve received, you may observe claims including:
- Breach of Contract: This is a claim that one party to an agreement has failed to uphold the terms of the agreement. It may be as simple as untimely or overdue payments, or it could be a more complicated series of events that the plaintiff claims violated the terms of the contract.
- Unjust Enrichment: A creditor may allege that you received benefits from them in the form of money that went into your business account, but that you haven’t returned the benefit to them, meaning you have been “unjustly enriched” at their expense. This claim does not directly arise from the terms of the loan contract but rather is based on the fact that you got money from the lender, and they didn’t get what they expect to be just and fair in return.
- Account Stated: The creditor claims that they have submitted a request for payment of an amount that you and they both have agreed is due, but that they have not received the payment as agreed.
The lawsuit papers you’ve received may state some or all of these claims against you and will discuss some facts that they claim support the cause of action in court. A skilled debt resolution lawyer can analyze the legal case and determine whether they have evidence and the factual and legal support required for the claims they’ve stated.
First Steps
Firstly, it's critical to realize that if you're facing a lawsuit from BHG Money or any lender, you must take the matter seriously and take action in response. Ignoring the lawsuit will only make the situation worse. Some steps you can take include taking the time to understand what you are facing and getting good advice on how to move forward.
Understand The Lawsuit
Read and understand the lawsuit against you, including the claims being made and the deadline for responding. It’s likely that the legal papers, called pleadings, will include a summons and complaint, and they could include attached copies of loan documents or other evidence that the lender claims to support the lawsuit. Review them carefully, making note of questions you may have about legal terms or anything you don’t fully understand or have doubts about, and speak with an experienced debt resolution attorney promptly for detailed feedback.
Review Your Loan Agreement
Take the time to review your loan agreement to ensure that BHG Money is not making any misleading or inaccurate claims in the lawsuit. It's possible that there are errors or discrepancies in the details of the loan agreement or the way they are representing the terms of the agreement that could help you defend against the lawsuit.
Understand The Statute Of Limitations
In New York, there is a statute of limitations for how long a lender has to file a lawsuit for unpaid debts. If the statute of limitations has expired, the lawsuit may be invalid, and you might be able to have it dismissed. A law that was passed in 2021 in the New York State legislature that went into effect in April 2022 allows just three years for a debtor to file a legal claim on a debt.
Don't Panic
Facing a lawsuit can be stressful, but it's important to stay calm and focused. Take the time to carefully consider your options and don't make any rash decisions. With the right approach and guidance, you can get through this difficult time and come out stronger on the other side.
Document All Communications
Keep a record of all communications with BHG Money, including phone calls, emails, and letters. This can help you build a case if you need to defend against the lawsuit or negotiate a settlement.
Get Legal Guidance
Consider hiring a lawyer to help you defend your interests. An experienced debt resolution attorney can help you understand your options and may be able to negotiate a favorable deal for you. Contact the Law Office of Simon Goldenberg, PLLC today to schedule a free legal consultation by calling (888) 301-0584 to get answers to your questions and start working on a resolution of your legal concerns.