Debt Relief Florida Style
Sunshine State Offers for Debt Relief

If you are seeking debt relief Florida residents have some state provided options. Don't think you are alone when investigating debt relief programs for financial help or advice. Many others are struggling to pay medical bills, credit cards, mortgages, child support and car loans.

Many debt relief programs and agencies are available to Florida residents so that you can learn to reduce their debt burden, take on a higher level of financial responsibly, and in time return to a life free of financial stress.

Most people are not well educated about the debt relief Florida laws, processes, benefits and downfalls, so if you are consumed by bills you can’t afford to pay, start by researching your legal rights to determine the solution that is best for you as a Florida resident.

Florida Debt Collection

The first thing you should know is that in Florida, collection companies and lawyers have to follow federal regulations provided for under the Fair Debt Collection Practices Act. These laws supersede local and state rulings that may be less stringent.

Next, you should be aware of the maximum fee a collection agency can charge you, which in Florida is an interest rate of eight percent. In today’s low interest rate environment, this is a very high percentage rate to be paying. Florida does protect its residents from wage garnishment if you make less than $500 a week. If you make more than that, your income can never be garnished to the point that it falls below a $2000 monthly minimum. Furthermore, communication with your employer regarding wage garnishment cannot be made by a debt collector or creditor until after a court judgment against you is in place.

Statute of Limitations

One of the most important things to know when looking to obtain debt relief in the state of Florida is the amount of time you have to file bankruptcy or settle a debt, otherwise known as the statute of limitations. The statute of limitations starts when you default on a payment. In Florida, you have four years from the date an account becomes past due to file bankruptcy, and to consolidate or negotiate debts that pertain to oral agreements and open accounts, such as credit cards. In addition, you have five years to file bankruptcy for written contracts or promissory notes.

Knowing this information can help you to make a decision sooner rather than later, which may potentially save you thousands instead of hundreds of dollars. It is also beneficial to know that these limitations apply to bill collectors as well, meaning that they cannot sue or go after you for any money owed beyond these time limitations.

Florida Debt Relief—Unsecured Debt

Unsecured debt is any money you owe that is not secured by some sort of collateral. In other words, if you owe money to a credit card company they cannot come and try to take away your car or home. For this reason, it is much simpler to negotiate a credit card debt reduction than a reduction in a secured loan like a mortgage. In the end it is cheaper for a credit card company to settle with you or a Florida-based debt relief agency than seek collections through the courts.

Collection Accounts Debt Relief Florida

When an account is past due for a significant period of time and the original lender has made numerous efforts to collect payment, the account will usually be written off by the loan originator and sold at a lower rate to a collection agency. The collection agency then adds a fee on top of your outstanding balance and tries to collect from you. If you can pay the outstanding balance promptly you may be able to get much of the interest and some of the principal erased resulting in a lower total amount owed.

A collection agency usually wants to collect their money within 30 days, if not immediately, so if your balance is large and you can’t come up with the payoff amount, bankruptcy could be your only viable option.

Debt Relief Florida—Medical Bills

It is unfortunate that people sometimes become so seriously ill or injured that insurance does not cover the full cost of a patient’s medical expenses. This can result in large debts being passed onto the patient. With our high medical costs even a single trip to the emergency room can quickly add up to $10,000 or more, depending on the circumstances. Medical debt is a leading reason so many people seek debt relief in Florida and throughout the United States. However, these large bills can be eliminated through bankruptcy or reduced through consolidation agencies.

Automobile Debt Relief Florida Style

Very often Florida car buyers take out long term loans on automobiles that are being paid down much slower than the car is depreciating in value. This is called being upside down on a loan.

If you owe money on a car and fail to make the payments in a timely fashion chances are the car will be repossessed and sold at auction for less than the outstanding loan balance. When this happens, you will be left with a car payment but no car. The only real upside here is at this point the debt is no longer secured because the collateral, the car, was already collected. This should make is much easier to negotiate a settlement. Another option is bankruptcy, it will release you from paying for something you no longer possess like a car.

If you need debt relief in Florida, lawyers and settlement companies can help you get your life back on track and put money back in your pocket.