When you are suffering from a pile of debt in Florida, you should be aware that Florida law provides you with rights and options for resolving your debts. If you are looking for opportunities for debt relief, contact our Fort Lauderdale debt relief attorneys at Loan Lawyers.
We are a full debt solution firm. We provide you with alternatives to simply proceeding with bankruptcy. Our firm has the knowledge and resources to offer solutions to help you achieve the best possible outcome in your specific case.
Our experienced Florida bankruptcy attorney use legal protections and debt programs to help you resolve your debts so that you can live your life without worry. Contact us now for a free and confidential consultation.
What Is the Deceptive and Unfair Trade Practices Act?
In Florida, businesses are prohibited by law from making false claims, using disinformation, or using other misleading tactics to make a sale. This law called the Florida Deceptive and Unfair Trade Practices Act, regulates a wide range of industries, such as consumer products, real estate, and credit cards.
Specific practices prohibited by the Act can vary depending on the particular industry.
A lawsuit under the Deceptive and Unfair Trade Practice Act can be brought either by the Florida Attorney General or by a private citizen who was a victim of deceptive or unfair trade practices. It is also possible for an alleged debtor to counterclaim a credit card or other finance company’s violation of the Act as a defense to that company’s lawsuit against the debtor.
Suppose a jury or the court determines that there has been a violation of the Deceptive and Unfair Trade Practices Act. In that case, the victim may be entitled to various potential remedies, including:
- Monetary damages, if a company acted in bad faith and the debtor can prove they suffered some financial loss through the company’s deceptive trade practices
- Injunctive relief, which orders a company to take, or refrain from taking, a certain action
- A declaratory judgment is a court determination of the rights and duties a lender and debtor owe to one another
In addition, if a credit card or finance company has committed intentional deceptive or unfair trade practices, a court may impose a civil fine and award attorneys’ fees and court costs to the alleged debtor.
Florida Statute of Limitations on Debt Collection
Under Florida foreclosure law, banks, credit card companies, and other finance companies have a limited period to file a lawsuit to recover a past-due or defaulted debt. This period is called the “statute of limitations.” If a case is not filed within the “statute of limitations, it can be dismissed by the court.
The statute of limitations in Florida on debt collection varies, depending on the type of debt involved:
- Debts arising from written contracts and promissory notes – 5 years
- Debts arising from oral contracts and debts from open-ended accounts (such as credit cards) – 4 years
- Judgment collections – 20 years
- Judgment liens – 10 years, with an option to extend for another 10 years
Certain kinds of debts, such as federal student loan debts, are not subject to a statute of limitations.
The statute of limitations for debt collection typically begins from the date of your last payment. If you make even a small, nominal payment on a debt or acknowledge that you owe it, it can restart the clock for the statute of limitations.
Once the statute of limitations has expired on your debt, the lender or a debt collector can still legally contact you to try to collect the debt. But they must cease contacting you if you request that they do so.
A lender or debt collection agency can also file a lawsuit to collect the debt, but if the statute of limitations has expired, that lawsuit can be dismissed as untimely. It is important to note that even if a lawsuit cannot collect a debt, it can still be reported to the credit reporting bureaus, where it will appear on your credit report for up to seven years.
What You Need to Know about Florida Debt Relief Programs
If you and your family are buried under a crushing amount of debt in Florida, you may be eligible for various debt relief programs, depending on the type of debt:
- Debt management – When your debt mainly consists of high-interest credit card debt, a debt management program can help bring payments under control. Credit counselors can contact credit card companies to reduce the interest on your debts, helping you establish budgets to keep your finances on track and slowly pay down your debts. You should understand that debt management programs can last for years, so it can be challenging to stick with the financial restrictions of such programs for an extended period.
- Debt consolidation loans – A debt consolidation loan is a loan from a single issuer used to pay off your outstanding debts from multiple sources so that you have only one regular payment. The interest on a debt consolidation loan is often far lower than the total interest rates on various credit cards or revolving credit accounts. Remember, though, that if you have subprime credit, a debt consolidation loan can be more expensive than your existing debts.
- Debt negotiation – Debt negotiation programs are often a bankruptcy alternative. In such programs, you are provided temporary relief from your debt payments instead of making payments into an escrow account. At the same time, a negotiation team works on your behalf to reach a settlement with your creditors to reduce the balance of your debts. Your escrow account then pays off the reduced amounts. It is important to note that debt negotiation and settlement can negatively impact your credit score and may result in tax liabilities.
- Mortgage restructuring or refinancing – If you cannot afford the mortgage on your house, the bank will typically offer a loan modification program, governed by state and federal law, that will restructure and refinance your mortgage to provide a manageable payment. You will usually be required to make payments during a trial period while the bank considers a modification. Bear in mind that the bank is not obligated to grant you a change and will not do so if it determines that your finances are not strong enough to support any possible modification.
Talk to a Florida Debt Relief Lawyer Now
If you cannot manage your debts, talk to a Fort Lauderdale bankruptcy attorney at Loan Lawyers today. Our legal team can help you understand your rights under the law and explain the options for resolving your debt and putting your finances back on track.
Contact our Florida bankruptcy attorney to schedule a free and confidential consultation with one of our knowledgeable debt relief attorneys.
