How State Laws Affect Debt Relief Programs in Florida
Florida Debt: The Basics
Florida was hit hard by the Great Recession, where unemployment rose to just over 11 percent in 2010. Thankfully, by mid-2016, the rate dropped to just under 5 percent. Bankruptcies were being filed at an unprecedented rate in the state during the worst of the recession. While new jobs have been created and tourism is up, the people of the Sunshine State are still feeling the ripple effects of the recession.
Currently the average debt for a Floridian sits around $5754, which is higher than the national average. On top of that, the average credit score is 658, lower than the national average. For many, there is still a need to resolve mounting debt through a debt management program in Florida. If you are looking to become debt free in Florida, you have options. Debt relief companies, such as Debt Quest, can help guide you through the process of a debt management program in Florida, whether that is with debt consolidation in Florida, consumer credit counseling, debt settlement in Florida or even bankruptcy in Florida (both bankruptcy chapter 7 and bankruptcy chapter 13).
Debt Collection in Florida
Florida functions under a set of federal laws collectively known as the Fair Debt Collection Practices Act (FDCPA). These laws protect debtors from unfair practices of debt collectors and creditors, such as placing limits on who the debt collector is allowed to contact to reach you. For example, the original creditor and the debt collector may not communicate with a debtor’s employer before a judgement is obtained, unless the debtor consents.
The maximum interest rate a collection agency is allowed to charge for debt collection in Florida is 5% above the Federal Reserve discount window rate at the time interest is due. Florida wage protection is 100% for heads of family up to $500 per week.
If you are being contacted by debt collectors in Florida, it is recommended that you seek the advice of an agency that provides debt management services in Florida.
Statute of Limitations in Florida
The statute of limitations in Florida sets the maximum period of time, after certain events, that legal proceedings may be initiated. For debt, that statutes of limitation apply to the maximum period of time after the debtor has become delinquent on their account. Note that this means the period of time starts the day after you become delinquent. For example, if you last payment was on April 4, 2019 and your next payment was due May 4, 2019, the statute of limitations clock wouldn’t start running until May 5, 2019.
The statute of limitations vary from state to state and also depend on the type of debt and where the original transaction took place. In Florida, the statute of limitations are as follows:
- Oral Agreements: 4 years
- Written Contracts and Promissory Notes: 5 years
- Open Accounts (credit cards): 4 years
If you are unsure if your debts are still within the statute of limitations, it is recommended that you contact an agency that provides debt management in Florida.
Debt Relief in Florida
If you feel you are drowning in debt, Debt Quest can help you with debt management in Florida. There are several different options available to you to help you become debt free in Florida, including credit counseling, debt consolidation loans in Florida, debt settlement in Florida and as a last resort, help with bankruptcy in Florida.
Our trained and caring professionals can help to educate you on your rights as a consumer. After they have analyzed your personal debt situation, they can then recommend the best course of action for you. We will then guide you through the process of debt relief programs in Florida. Several of the options available to you to become debt free can even help you save money in the long-run.
Debt Consolidation in Florida
This form of debt relief in Florida is when you consolidate all of your debts into one loan, often referred to as Florida debt consolidation programs. Debt consolidation loans in Florida often have a lower interest rate, making the payment of your debts more affordable. Debt consolidation in Florida is one of the most common options used by debt management services in Florida.
Debt consolidation companies in Florida will negotiate with your creditors on your behalf to set the terms of your new debt consolidation loans in Florida. In some cases, once you have paid down enough of your debts through debt consolidation in Florida, some debt consolidation companies in Florida may choose to move forward with debt settlement in Florida with your creditors.
Note that debt consolidation loans in Florida do not lower the principal amount of debt owed. Debt consolidation in Florida only lowers the interest rate on the principal amount of debts owed.
Debt Settlement in Florida
Another form of debt relief in Florida is debt settlement. This is when a company that provides debt management in Florida negotiates with your creditors on your behalf to lower the principal amount of debts owed, and perhaps even lower the interest rate on those debts. Because this type of debt relief eliminates some of the debt you owe through debt forgiveness, this is a very appealing form of debt relief in Florida.
Take note that not all debtors qualify for this option. More often than not, a debtor will qualify for Florida debt consolidation programs (i.e. debt consolidation loans in Florida). By working with an agency that provides debt relief in Florida, you’ll be able to find out whether you qualify for debt settlement in Florida or debt consolidation in Florida.
Consumer Credit Counseling
Consumer credit counseling is when a debt relief agency provides a debtor with classes or counseling on how to better manage personal finances. The hope is that by going through credit counseling, a person will be able to better manage current debts but also keep them from getting into debt again in the future.
Credit counseling is often paired up with another option for debt relief, such as debt consolidation loans in Florida or debt settlement in Florida.
Bankruptcy in Florida
Filing for bankruptcy in Florida should be considered a last resort option. This is because the bankruptcy process can leave long-lasting negative effects on your credit score. Before starting the bankruptcy process, it is recommended that you first seek out the advice of a company that offers debt management in Florida. This agency, such as Debt Quest, will help you to first exhaust all other options for debt relief first, such as debt consolidation loans in Florida.
Filing for bankruptcy in Florida includes two common options, bankruptcy chapter 7 and bankruptcy chapter 13. When filing for bankruptcy in Florida, it is important to speak with a professional to understand your rights as a debtor, including what properties may be listed as exemptions under the laws of bankruptcy in Florida.
Getting a handle on mounting debts can be a very stressful situation. However by working with a company that provides debt relief in Florida, such as Debt Quest, you will have the peace of mind knowing that a caring and trained professional will help you through the process of debt management in Florida. That professional will analyze your personal debt situation and recommend the best course of action based off your unique situation, whether that option is debt consolidation in Florida, credit counseling, debt settlement in Florida or, as a last resort, the bankruptcy process. It is possible to become debt free in Florida.