Florida Debt Settlement Laws Cost Data 2026
| Legal Parameter | Florida Rule | Source |
|---|---|---|
| SOL — written contracts (credit cards) | 5 years | FL Stat §95.11(2)(b) |
| SOL — oral contracts | 4 years | FL Stat §95.11(3)(j) |
| Wage garnishment — | head of household$750 a week or less exempt; above that, exempt unless waived in writing | FL Stat §222.11(2) |
| Wage garnishment — others | 25% of disposable earnings, or the amount above 30× the federal minimum wage if less | Federal CCPA §1673 |
| Exempt wages in a bank account | Stay exempt for 6 months if traceable as earnings | FL Stat §222.11(3) |
| Homestead exemption | Unlimited value (half acre in city, 160 acres rural) | FL Const Art X §4 |
How to Vet a Debt Relief Company in Florida
This guide does not recommend specific companies. Any provider can be checked the same way: against Florida's own rules summarized on this page, against the federal advance-fee ban in the FTC Telemarketing Sales Rule (16 CFR 310.4(a)(5)), and against the public records below.
| Resource | What it offers | Link |
|---|---|---|
| Florida Attorney General, Consumer Protection | Consumer complaints about debt relief companies; enforces the Florida Deceptive and Unfair Trade Practices Act. Florida's fee caps for debt management and credit counseling services are in Fla. Stat. 817.801-817.806. | Visit Site → |
| Florida Office of Financial Regulation | Registers consumer collection agencies (Fla. Stat. 559.553) and takes complaints about financial businesses operating in Florida. | Visit Site → |
| National Foundation for Credit Counseling (NFCC) | Finder for accredited nonprofit credit counseling agencies offering budget help and debt management plans. | Visit Site → |
| CFPB complaint database | Federal complaint histories for any debt relief company or collector, searchable by company name. | Visit Site → |
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Florida Law and Requirements
Florida consumer debt protection statutes: §95.11 (statutes of limitations); §222.11 (wage exemption for head of household); §559.55–559.785 (FL Consumer Collection Practices Act — extends FDCPA to original creditors in FL); 817.801-817.806 (credit counseling services fee caps). Federal: FDCPA (15 U.S.C. §1692), FTC TSR (16 CFR §310), Regulation F (12 CFR §1006).
Key Terms
- Debt SettlementNegotiating with creditors to accept less than the full balance, typically via lump-sum payment.
- Statute of LimitationsWindow during which a creditor can sue to collect. After expiry the debt is "time-barred."
- Charge-OffWhen a creditor writes off an unpaid debt as a loss, which the FTC says can happen after 4–6 months of missed minimum payments. The debt is still owed and may be sold to a collector.
- FDCPAFair Debt Collection Practices Act — federal law barring abusive or deceptive collection tactics.
- Debt Management PlanStructured repayment through a nonprofit credit counseling agency, often at reduced interest rates.
- 1099-CIRS form issued when a creditor forgives $600+ — the forgiven amount may be taxable income.
Practitioner view
The consequence people underestimate is the tax bill. When a creditor forgives part of a balance, that forgiven amount is generally treated as income to you, and the creditor may issue a Form 1099-C reporting it. So someone can settle a large balance, feel relieved in the spring, and owe the IRS in the fall without having set anything aside. There are exclusions, and being insolvent at the time of the forgiveness is the most common one, but it has to be claimed and documented on the return. It is not automatic, and most people do not know to ask. … Ask any program what your tax picture looks like the year after it works. If they cannot answer that, they have not finished the math.
Quoted via a Connectively expert request; quote confirmed with the source September 11, 2026. Views are the source's own.
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How to Understand Your Rights in Florida Debt Settlement — Step by Step
Know your Florida SOL
Check the date of your last payment on each written-contract debt. Add 5 years (FL Stat §95.11(2)(b)). If a creditor attempts to sue after that date, you have a complete defense — raise the SOL affirmatively in your answer to the lawsuit. Courts will not dismiss on their own; you must plead the SOL defense.
Understand the FL Consumer Collection Practices Act
FL Stat §559.72 extends FDCPA protections to original creditors (not just third-party collectors) in Florida. Creditors cannot harass, use abusive language, make false statements, or contact you at inconvenient times. Unlike the federal FDCPA, Florida's FCCPA applies even when the original creditor is collecting its own debt.
Document all creditor contacts
Keep a log of every call: date, time, phone number, name of caller, and what was said. Save written communications. This documentation is evidence if you need to file a FCCPA complaint. FL Stat §559.77 allows private lawsuits for actual damages, additional statutory damages of up to $1,000, and attorney's fees.
Assert your head-of-household exemption
If you provide more than 50% financial support for a dependent, notify any creditor attempting garnishment in writing that you claim head-of-household exemption under FL Stat §222.11. File a Claim of Exemption form with the court if a garnishment order is issued.
File complaints for violations
Report FL Consumer Collection Practices Act violations to: the FL Office of Financial Regulation, which receives and investigates FCCPA complaints (FL Stat §559.725); FL Attorney General Consumer Protection (866-966-7226); CFPB (consumerfinance.gov/complaint); FTC (reportfraud.ftc.gov). An FCCPA lawsuit must be brought within 2 years (FL Stat §559.77(4)).
Consult a FL consumer attorney
If you've been sued by a creditor, received a garnishment notice, or are dealing with violations, consult a FL consumer protection attorney. The National Association of Consumer Advocates (NACA) maintains a directory at consumeradvocates.org.
Frequently Asked Questions — Florida Debt Settlement Laws
What is the statute of limitations on credit card debt in Florida?
5 years under FL Stat §95.11(2)(b). This applies to written contracts, which includes credit card agreements. After 5 years, the debt becomes "time-barred" and creditors cannot successfully sue to collect — but the debt still exists and can affect your credit report for 7 years, counted from 180 days after the first delinquency (15 U.S.C. § 1681c(c)).
What happens if I make a payment on old debt in Florida?
A part payment on a written-contract debt pauses Florida's limitation period (FL Stat §95.051(1)(f)), and a signed written acknowledgment of the debt can restart it (FL Stat §95.04). Never make a payment on old debt without first confirming whether it's time-barred and understanding the implications.
Can a debt collector sue me in Florida after the SOL expires?
Yes — a creditor CAN file suit even after the SOL expires. However, you have a complete defense: plead the SOL in your answer to the complaint. If you ignore the lawsuit, the creditor gets a default judgment regardless of the SOL. Never ignore a Florida court summons related to debt.
What does the Florida Consumer Collection Practices Act protect me from?
FL Stat §559.72 prohibits FL creditors and collectors from: harassing or threatening violence, using profane language, falsely implying legal action is imminent, contacting you at unreasonable hours, contacting you when they know an attorney represents you on the debt, and disclosing your debt to third parties. A court can award actual damages, additional statutory damages of up to $1,000 and attorney's fees (FL Stat §559.77).
Is there a Florida debt collector license requirement?
Yes — consumer collection agencies operating in Florida must register with the FL Office of Financial Regulation (OFR) under FL Stat §559.553, with exemptions the statute lists, such as original creditors and attorneys. Check a collector's registration at flofr.gov.
What is the Florida homestead exemption for debt purposes?
Florida's homestead exemption (FL Constitution Art. X §4) protects primary residences from forced sale by most creditors. Limits: 1/2 acre within city limits, 160 acres outside. There is no dollar cap on Florida's homestead exemption. The constitution's exceptions are taxes and assessments on the property, debts for its purchase, improvement or repair, and debts for labor performed on it.
What are my rights if a debt collection lawsuit is filed against me in Florida?
You generally have 20 days after service to serve your answer (Fla. R. Civ. P. 1.140(a)). Include all defenses: SOL (if applicable), inaccurate amount, wrong party, identity of original creditor, and any FCCPA violations. Attend all hearings — default judgments are difficult to reverse. Consider consulting a FL consumer attorney, because a recorded judgment can become a lien on real property.
How long does a judgment stay on my record in Florida?
A certified copy of a judgment recorded in a county becomes a lien on your real property there for 10 years, and it can be extended once by re-recording; no judgment lien lasts beyond 20 years from the judgment (FL Stat §§55.10, 55.081). Judgments accrue interest at the rate in effect when the judgment is entered, adjusted each January 1 (FL Stat §55.03); the Chief Financial Officer set 7.87% for the quarter beginning October 1, 2026. Paying the judgment or disputing it in court are the primary ways to satisfy it.
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