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Debt Collection Defense Attorneys
If you owe money that you are struggling to pay back, chances are that you have been contacted at some point by a debt collector. They may have contacted you via phone, mail, and/or email in an effort to collect payment. These communications can be aggressive and persistent, but ignoring them is never a good idea. Without setting up a plan for how you are going to deal with your debt, you could end up facing some unpleasant methods of debt collection.
How Creditors Collect Debts in Florida
Creditors have various methods to try to collect on debts or loans that you may owe, including:
Property repossession: Failure to make repayments on a loan could result in a loss of a vehicle or other piece of personal property.
Wage garnishment: If a creditor sues you and obtains a judgment against you, they may collect on the debt by automatically taking a portion of your paycheck. The garnishment may be up to 25 percent of your net pay.
Utility shutoffs: Failure to pay a water, electricity, gas, or trash utility on time can result in a cancellation of services.
Property liens: Liens on real estate are a common way for creditors to attempt to collect what they are owed. When a lien is placed on a piece of property, the borrower cannot sell or refinance the property until the lien is paid off.
Tax refund intercepts: A creditor may ask the IRS to take your tax refund before you get it in order to apply the money to your debt.
Bank set-offs: If you are behind on repayments for a bank loan, the bank may be able to take money from another account to cover your missed payments.
Frozen bank accounts: A creditor with a judgment against you can get permission to take money from your bank account
When Is Debt Collection Illegal?
Debt collectors must follow the law when contacting you regarding your debt. There are limits to what they can and and cannot do, specifically harassment.
Illegal debt collection practices include:
If a creditor has violated the law and used illegal tactics to pressure you into paying your debts, contact Boss Law for more information on what you can do.
If a creditor has violated the law and used illegal tactics to pressure you into paying your debts, contact Boss Law for more information on what you can do.
Requesting Verification of the Debt
If you are being contacted by a debt collector, one potential option you have for responding is to request a verification of the debt. Under the Fair Debt Collection Practices Act (FDCPA) you have the right to send the debt collector a debt verification request. If you submit this document within 30 days of receiving the notice of the debt, the bill collector will be required to send you documentation that verifies the debt, such as an account statement. At bare minimum the debt collector must provide you with the name and address of the creditor and a description of the amount that you now owe. Until they respond with appropriate verification, the debt collector will be prohibited from continuing their collection efforts against you. Note that this law only applies to debt collectors, not creditors.
If the debt collector continues their attempts to collect the debt from you, even though they did not provide this verification, you have the right to sue them. This could result in an award of up to $1,000. You could also be compensated for actual damages, court costs, and lawyers’ fees.
Additional Options for Debt Collection Relief
There are several additional options for freeing yourself from the pain of dealing with debt collectors and creditors.
When you contact Boss Law, we can discuss the following:
Bankruptcy: Bankruptcy provides an automatic stay, which means that while your case is pending, debt collection agencies cannot contact you or make collection efforts against you.
Negotiating with Creditors (debt settlement): Debt collectors would rather collect a portion of your debt than nothing at all. An attorney may be able to negotiate a settlement with a debt collector in which your entire debt will be regarded as “paid in full” upon receipt of an agreed upon amount.
Debt consolidation: A debtor can bring together individual debts and liabilities into one loan, making them responsible for only one payment every month. This could lead to lower overall payments that are more manageable.