Debt Settlement Blog

Florida debt settlement also known as Florida debt elimination or debt reduction, is a relatively new way for dealing with your credit card debt. In a debt settlement program, by negotiating with a creditor, a consumer can reduce their debt by as much as 40-73% percent and be debt free in as little as 12 to 36 months with one lower monthly payment

Debt settlement is one solution for consumers that are facing a legitimate financial hardship with credit card debt and that find themselves either falling behind on their payments or just able to afford the minimums. There are risks associated with debt settlement programs as well and you should consult one of our staff for a better understanding of the risks involved. If you’re doing debt settlement in Florida these concerns are very much diminished. Florida debt settlement programs don’t carry as great of a risk as with other states. The laws in the state of Florida for debt settlement programs are unique in the sense that the consumer is protected from common collection practices and has rights in regards to past due credit card bills and other unsecured debts.

Florida Debt Settlement Laws

With a Florida debt settlement program one way to reduce the phone calls and collection efforts on the debts owed is the send a Cease and Desist letter to the creditors notifying the creditor or collector of the third party debt settlement company. Florida state law takes these Cease and Desist orders as well as a Power of Attorney from the debt settlement companies very seriously and the law states that the original creditor must also refrain from contacting the debtor (the client) while the debt settlement company or third party is servicing the account. Debt settlement companies typically disclose that while all efforts can be made to ensure that phone calls are reduce Florida debt settlement programs have an extra layer of protection that others states do not.

Florida Debt Settlement Clients

Most clients that partake in a Florida debt settlement program have excellent protection from having wages garnished or interference with their home. This protection for Florida debt settlement clients gives creditors and collectors no other choice but to settle on the accounts. Florida debt settlement cleints typically complete the program sooner than expected because the creditor has zero bargaining power with the Florida debt settlement company due to the lack of legal action that can be pursued.

Florida Debt Settlement Explained

Most debt settlement cases are settled with out any problems however it is impossible for the Florida debt settlement company to guarantee any services. Creditors are always reserved the right to sue debtors to collect a past due account, regardless of whether the consumer is taking any action to resolve the outstanding debt.

In the event a creditor sues a consumer in court and wins a judgment, they’ll usually go about executing the judgment in one of the following ways:

1) Wage garnishment—contacting your employer and asking that they set aside a percentage of your wages every paycheck until the debt is paid back in full. (It’s illegal for an employer to fire you for this unless more than one creditor is garnishing your wages).
2) Lien on your property—obligates you to pay back the creditor with any proceeds from the sale or refinancing of the property. A creditor prefers to put a lien on your home since it usually increases in value over time, which means the proceeds from your home’s sale will be higher, and thus they’re more likely to actually get paid back.
3) Seizing your bank account—contacting your bank, showing the proof of judgment, and asking to freeze and withdraw any monies held in deposit under your name.

Fortunately, Florida laws protect “heads of household” or anyone that provides for dependents from having their wages garnished (unless you authorized in writing to allow your creditor to garnish your wages) and entitle Florida consumers to 100 percent homestead protection in the event of a lien. (Note: this may not apply to tax liens, alimony, or contractor’s liens.) Any wages that are deposited in your bank account are also exempt for up to 6 months after you deposited them.

In sum, these are major advantages for debt settlement clients in Florida. Keep in mind that the vast majority of cases are settled successfully regardless of the legal advantages of the consumer. When you consider Florida state laws, Florida debt settlement makes even more sense for the credit card companies, debt collection agencies, and most importantly, consumers. In the end, Florida debt settlement is an ideal solution for consumers overwhelmed with medical bills, credit card debt, personal loans, and repossessions.

Call for Florida debt settlement Today 1-866-791-2455