We understand that dealing with debt is stressful, and you probably have a lot of questions. Below, our Florida attorneys answer the most common questions we hear from clients about debt relief, Florida debt laws, debt lawsuits, and credit card debt. If you do not see your question here, contact us for a free consultation.
General Debt Relief
How does debt relief work?
Debt relief is the process of reducing or restructuring your outstanding debts so they become more manageable. At our firm, we negotiate directly with your creditors to settle debts for less than you owe, often saving our clients thousands of dollars. You make one affordable monthly payment to us, and we use those funds to reach settlements on your behalf. Our Florida debt relief program is designed to resolve your enrolled debts within 12 to 48 months.
Is debt relief legal in Florida?
Yes, debt relief is completely legal in Florida. Debt settlement, debt negotiation, and credit counseling are all lawful strategies for managing overwhelming debt. In fact, Florida law provides additional consumer protections, including the homestead exemption and head of household exemption, that can shield your assets during the process. Working with a licensed Florida attorney ensures your rights are fully protected throughout every step.
How much does debt relief cost?
Our fees are performance-based, which means we only get paid when we successfully settle a debt on your behalf. There are no upfront costs to enroll in our program. During your free consultation, we provide a clear breakdown of our fee structure so there are no surprises. Because we are attorneys, we can often achieve better settlement results than non-attorney debt settlement companies, which means greater overall savings for you.
Will debt relief affect my credit score?
Debt settlement can temporarily lower your credit score because settled accounts may be reported as "settled for less than owed" rather than "paid in full." However, many of our clients see their credit scores improve within 6 to 24 months as their debt-to-income ratio drops and negative accounts age off their reports. If you are already behind on payments, your credit has likely already been impacted, and debt relief may be the fastest path to recovery.
How long does the debt relief process take?
Most clients complete our debt relief program within 12 to 48 months, depending on the total amount of debt enrolled and their monthly payment capacity. You can typically expect your first settlement within 4 to 6 months if you maintain your payment schedule. We provide a personalized timeline estimate during your free consultation so you know what to expect from day one.
What types of debt can be included in a debt relief program?
We can help with most unsecured debts, including credit cards, medical bills, personal loans, department store cards, and private student loans in some cases. We also handle deficiency balances from repossessions and foreclosures. Secured debts like mortgages and auto loans typically cannot be settled through a debt relief program. Visit our credit card debt relief page to learn more about your options.
What is the difference between debt relief and bankruptcy?
Debt relief through settlement allows you to negotiate reduced payoff amounts with creditors without going to court, and it typically has a less severe long-term impact on your credit than bankruptcy. Bankruptcy, on the other hand, is a legal proceeding that can discharge most debts but remains on your credit report for 7 to 10 years. Many of our clients prefer debt settlement because it offers a faster resolution and avoids the public record of a bankruptcy filing. Our attorneys can help you determine which option is the better fit for your situation.
Can I negotiate with creditors myself?
You can attempt to negotiate with creditors on your own, but it is rarely as effective as having an experienced attorney handle it for you. Creditors and collection agencies negotiate professionally every day, and they know how to pressure consumers into unfavorable agreements. Our attorneys have settled thousands of accounts and understand the tactics creditors use. We consistently secure better settlement terms than consumers achieve on their own, and we handle all communication so you do not have to deal with stressful calls.
Florida Debt Laws
What is the statute of limitations on debt in Florida?
In Florida, the statute of limitations on written contracts (including most credit card agreements) is 5 years. Oral contracts have a 4-year limitation period, promissory notes have a 5-year period, and judgments are enforceable for 20 years. Once the statute of limitations expires, a creditor can no longer sue you to collect the debt, although they may still attempt to contact you. Read our detailed guide on Florida debt statutes of limitations for more information.
Can creditors garnish my wages in Florida?
Yes, creditors can garnish your wages in Florida, but only after obtaining a court judgment against you. However, Florida provides strong protections for wage earners. If you qualify as head of household and your net wages are $750 or less per week, your wages are completely exempt from garnishment. Even if you earn more, you can claim the head of household exemption to protect your income. This is one of the many reasons why responding to a debt lawsuit promptly is so important.
What is the Florida homestead exemption?
The Florida homestead exemption is one of the strongest asset protections in the country. It protects your primary residence from being seized by most creditors, regardless of the property's value, as long as the property is on half an acre or less within a municipality or 160 acres outside a municipality. This means that even if you owe significant debt, your home is generally safe from creditor claims. This protection applies in debt collection, bankruptcy, and judgment enforcement.
What is the head of household exemption in Florida?
The head of household exemption in Florida protects your earnings from wage garnishment if you provide more than half the support for a child or other dependent. Under Florida Statute 222.11, if you qualify as head of household, your disposable earnings are completely exempt from garnishment up to $750 per week. Even above that threshold, your wages cannot be garnished without your written consent. This is a powerful protection that our attorneys routinely assert on behalf of our clients.
Can debt collectors call me at work in Florida?
Under the Fair Debt Collection Practices Act (FDCPA), debt collectors are prohibited from calling you at work if they know or have reason to know that your employer does not allow such calls. You have the right to tell any debt collector not to contact you at your workplace, and they must comply. If a collector continues to call your job after being told to stop, they are violating federal law, and you may be entitled to damages. Contact our office if you are experiencing harassment from debt collectors.
What are my rights under the Fair Debt Collection Practices Act?
The FDCPA provides extensive protections against abusive debt collection practices. Collectors cannot call you before 8 a.m. or after 9 p.m., use threatening or obscene language, misrepresent the amount you owe, or contact you after you have requested communication in writing only. They must also provide written verification of the debt within 5 days of first contact. If a collector violates these rules, you may be entitled to statutory damages of up to $1,000 per violation plus attorney fees. Our firm regularly pursues FDCPA claims on behalf of Florida consumers.
Debt Lawsuits
What should I do if I'm sued for debt in Florida?
If you have been served with a debt lawsuit in Florida, the most important thing is to act quickly. You have only 20 days from the date of service to file a written response with the court. Do not ignore the lawsuit, as this will result in a default judgment that gives the creditor the right to garnish your wages and freeze your bank accounts. Contact our office immediately for a free consultation so we can review your case and prepare your defense.
How long do I have to respond to a debt lawsuit in Florida?
In Florida, you have 20 calendar days from the date you are personally served to file a written response (called an "Answer") with the court. If you were served by publication or other alternative methods, the deadline may differ. Missing this deadline almost always results in a default judgment against you, so time is critical. Our debt lawsuit defense attorneys can prepare and file your response quickly, even if your deadline is approaching.
What happens if I ignore a debt lawsuit?
If you ignore a debt lawsuit in Florida, the court will enter a default judgment against you. This gives the creditor legal authority to garnish your wages, levy your bank accounts, and place liens on your property. A judgment in Florida is valid for 20 years and accrues interest, so the amount you owe will continue to grow. Ignoring a lawsuit is never the right strategy. Even if you believe you owe the debt, there are defenses and settlement options available to you.
Can a debt collector sue me for old debt in Florida?
A debt collector can file a lawsuit for old debt, but if the debt is past the statute of limitations (5 years for most written contracts in Florida), you have an affirmative defense to the lawsuit. However, you must actually raise this defense in your Answer; the court will not dismiss the case automatically. Some collectors intentionally sue on time-barred debt hoping consumers will not respond. If you have been sued for an old debt, contact us right away so we can evaluate whether the statute of limitations applies.
What is a default judgment?
A default judgment is a court ruling entered against you when you fail to respond to a lawsuit within the required timeframe. In Florida debt cases, this typically happens when a defendant does not file an Answer within 20 days of being served. Once a default judgment is entered, the creditor can pursue aggressive collection actions including wage garnishment, bank account levies, and property liens. It is possible to have a default judgment set aside in some circumstances, but it is far better to respond to the lawsuit on time.
Can Credit and Debt Relief represent me in court?
Yes. Unlike non-attorney debt settlement companies, our firm is a licensed Florida law practice, and our attorneys can represent you in all court proceedings related to debt lawsuits. We handle everything from filing your initial Answer to negotiating with opposing counsel, attending hearings, and pursuing a favorable resolution. Visit our debt lawsuit defense page to learn how we protect our clients in Florida courts.
Credit Card Debt
Can credit card companies sue me in Florida?
Yes, credit card companies and the debt buyers they sell accounts to can and do sue consumers in Florida. If you fall behind on payments, the original creditor may file suit directly or sell the account to a third-party debt buyer who then sues in their own name. These lawsuits are filed in Florida county courts and you must respond within 20 days of being served. Our debt lawsuit defense team has defended thousands of Floridians against credit card lawsuits.
How much can credit card debt be settled for?
Settlement amounts vary depending on the creditor, the age of the debt, and your financial circumstances, but our attorneys typically negotiate credit card debt settlements for 30% to 60% of the outstanding balance. In some cases, we have settled debts for even less. The key factors are whether the debt is still with the original creditor or has been sold to a debt buyer, and how aggressively we can negotiate on your behalf. Learn more about our credit card debt relief services.
What happens to credit card debt after 5 years in Florida?
After 5 years from your last payment, credit card debt in Florida generally becomes time-barred, meaning the creditor can no longer sue you to collect it. However, the debt does not disappear. Collectors may still call and send letters attempting to collect, and the account may still appear on your credit report for up to 7 years from the date of first delinquency. It is important not to make a partial payment on old debt, as this can restart the statute of limitations clock.
Will settling credit card debt hurt my taxes?
If more than $600 of your debt is forgiven through settlement, the creditor is required to report the forgiven amount to the IRS on a Form 1099-C, and it may be considered taxable income. However, if you were insolvent at the time of the settlement (meaning your total debts exceeded your total assets), you may be able to exclude the forgiven debt from your taxable income using IRS Form 982. We recommend consulting with a tax professional about your specific situation. Even with potential tax implications, settlement typically saves our clients significantly more than they would owe in taxes.
Should I stop paying my credit cards before enrolling?
This is a decision that should be made carefully with the guidance of an attorney. In many cases, creditors are more willing to negotiate a settlement once an account is delinquent, because they recognize they may not collect the full amount. However, stopping payments will negatively affect your credit score and may trigger collection calls and potential lawsuits. During your free consultation, our attorneys will evaluate your complete financial picture and advise you on the best strategy for your specific circumstances.