How Bankruptcy Laws Protect You from Debt Collectors in Florida

When you fall behind on credit card payments or incur medical bills you cannot pay, you may begin to receive phone calls and letters from debt collectors who aggressively pursue repayment of those debts. But are debt collectors legal, and can they lawfully pursue money you purportedly owe on debts in Florida?

Although Florida debt collection laws allow debt collectors to operate, their efforts must cease when a person files for bankruptcy. Filing a bankruptcy petition triggers an automatic stay that precludes any party from commencing or continuing any debt-collection efforts, including making phone calls, sending letters, or filing collection actions.

Bankruptcy enables debtors to repay or reorganize their debts under court supervision, allowing them to catch up on payments or make a fresh start. A person might file for Chapter 7 bankruptcy, under which they liquidate (sell) most of their assets to generate money to repay creditors. Alternatively, a person may file for Chapter 13 bankruptcy, under which they reorganize their debts into a repayment plan to repay creditors over a three- to five-year period.

Although bankruptcy cases happen in federal courts under primarily federal law, Florida law also provides a set of exemptions that allow debtors who file for Chapter 7 to keep some of their property from liquidation.

Loan Lawyers knows how bankruptcy laws can protect you from debt collectors in Florida to help you pursue your legal options for relief from crushing debt.  Contact us now for a free consultation to learn more about your legal options.

Your Rights Under Bankruptcy Laws

Bankruptcy laws can protect you from debt-collection efforts as soon as you file a petition. Some of the benefits of filing for bankruptcy include:

• Automatic stay – Once a debtor files for bankruptcy, debt collectors must cease contacting the debtor and refrain from pursuing legal action to recover debts.
• Discharge of debts – In a Chapter 7 case or upon completion of a Chapter 13 repayment plan, a debtor can obtain a discharge of remaining eligible debts, which eliminates the debtor’s continued liability.
• Reorganization – In Chapter 13 bankruptcy, a debtor can reorganize their debts and use the repayment plan to catch up on missed payments, which can help avoid home foreclosure or vehicle repossession.

Florida Debt Collection Law

Florida’s Consumer Collection Practices Act provides consumers with specific rights and legal protections when dealing with debt collectors. The Florida statute, which supplements the federal Fair Debt Collection Practices Act, prohibits debt collectors from engaging in abusive, deceptive, or unfair practices. Some of the practices prohibited by Florida law include:

• Posing as a law enforcement officer or representative of a government agency
• Using or threatening force or violence
• Threatening to disclose information that affects a debtor’s reputation for creditworthiness without advising the debtor that the law also requires the debt collector to disclose the debtor’s dispute of the debt
• Communicating or threatening to speak with a debtor’s employer before obtaining a final court judgment against the debtor
• Disclosing information affecting the debtor’s reputation for creditworthiness, except to the debtor or their family, knowing that the party receiving the information does not have a legitimate business need for the information, or knowingly disclosing false information
• Disclosing information regarding the existence of a debt without also disclosing whether the debtor had disputed the debt
• Willfully communicating with a debtor or their family with a frequency reasonably expected to harass or abuse the debtor or their family
• Using vulgar, abusive, obscene, or profane language when communicating with a debtor or their family
• Attempting to enforce a knowingly false or fraudulent debt or knowingly asserting the existence of a right that does not exist
• Using a communication that simulates a legal or judicial process or gives the appearance of coming from a government agency or attorney at law when it does not
• Communicating with a debtor under the guise of an attorney or using forms that only attorneys may prepare
• Communicating with a debtor in a manner that gives the false appearance of association with an attorney
• Publishing or threatening to publish a list of debtors (for example, a “deadbeat” list)
• Refusing to provide adequate identification
• Mailing communications with an envelope or postcard designed to embarrass a debtor
• Communicating (except by email) with a debtor between the hours of 9 p.m. and 8 a.m. in the debtor’s time zone without the debtor’s consent
• Knowingly communicating directly with a debtor represented by legal counsel
• Charging a debtor for communications

Statute of Limitations on Credit Card Debt in Florida

Florida debt collection laws also place a time limit on creditors’ or debt collectors’ ability to pursue legal action for collecting consumer debts. The Florida statute of limitations on credit card debt typically gives a creditor or debt collector five years from the date of an accountholder’s last payment or last activity to file a lawsuit to recover the account balance.

Commercial Debt Collection Laws

Florida’s consumer protection laws typically do not apply to commercial debt collection from a business. Commercial debt collection laws enable creditors or debt collectors to pursue contractual remedies to recover business debts, such as seizing or foreclosing on business assets that secure debts or filing breach-of-contract actions against a debtor business.

However, contracts may give Florida businesses other rights for dealing with unpaid invoices, such as net payment terms or the right to notice and cure.

When Bankruptcy May Be the Best Option

Bankruptcy may prove to be the best option for debtors to deal with debt collectors in Florida when a debtor has overwhelming debt and cannot afford to make minimum payments, or when creditors or debt collectors begin legal action to collect debts, such as filing lawsuits or pursuing garnishment.

Although bankruptcy can seem like a drastic step, it can help provide debtors with a fresh start free from unaffordable debts that can cause significant financial difficulties and emotional stress. The legal team at Loan Lawyers has a proven track record of helping clients identify and pursue effective legal strategies to resolve debts, including filing for bankruptcy when it is the best option.

Contact Our Florida Bankruptcy Attorneys for Help

When you receive constant letters and telephone calls from debt collectors, bankruptcy might represent your best option for relief. However, you do not have to deal with debt or bankruptcy alone.

Contact Loan Lawyers today for a free, confidential consultation with a Florida bankruptcy lawyer to learn how our firm can protect your rights under Florida debt collection laws. Our firm has helped over 10,000 clients and families resolve more than $100 million in debt.