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Credit Card Debt Florida: Bankruptcy Debt Relief

Credit card debt is one of the most common types of debt that can affect your financial situation. As your balance starts accumulating, you may be struggling to make your required payments while covering your living expenses. Credit card debt can be suffocating. Filing for bankruptcy can give you the debt relief you need to start over. 

When having financial difficulties, credit cards may be the only way that many Floridians have to get by. However, this debt can quickly become a financial burden. For this reason, in this article, you will learn how this type of debt works in Florida, what your creditors are allowed to do, and how filing for bankruptcy can help you reduce or eliminate your debt. 

Credit card debt is one of the reasons why people file for bankruptcy. If you are facing overwhelming debts you can no longer repay, an Orlando bankruptcy attorney can assess your case and may be able to help you find the financial relief you are looking for. 

Credit Card Debt in Florida & Bankruptcy

Many people find themselves facing mounting credit card debts. In fact, according to Experian, the average credit card debt in Florida is $6,050. Meanwhile, other reports show that, on average, household credit card balance in Orlando amounts to $9,569. 

If you have outstanding credit card debt in Florida, there are different debt relief options that may be suitable for you. Filing bankruptcy, for example, has numerous advantages and protections for debts. 

As an unsecured debt, credit card debt is not considered a priority debt. This means that, when filing for bankruptcy, debtors may only repay a portion of their credit card balance. Since the debtor’s property does not guarantee credit cards, these debts are wiped out once the bankruptcy case is completed. 

The amount of unsecured debt you can discharge in Florida and how it’s handled depends on the type of bankruptcy you file. To file Chapter 13 your secured debts (car loans, furniture, home, etc) and unsecured debts (such as credit cards) cannot exceed $2,750,000. Based on your income and the length of the plan, you may end up repaying part or all of your credit card balance. 

Chapter 7 bankruptcy, on the other hand, does not limit how much unsecured debt you can discharge. In many cases, Florida bankruptcy exemptions protect your property from being sold. This means that your unsecured creditors are unlikely to be paid, but your debt will be forgiven. 

Bankruptcy not only allows you to deal with credit card debt in Florida but also handles other types of debt. Additionally, this process can stop any collection efforts. An Orlando bankruptcy attorney from Z. Hernandez Law can help you determine if this procedure is the most appropriate for your situation. 

Final Judgment on Debt in Florida

Without a doubt, dealing with large bills and debt can be stressful. Especially when you do not know how far debt collectors can go in their attempts to collect a debt. A collection agency may start by contacting you to try to get you to pay your balances. 

If you are unable to pay off your debt, a debt collector can sue you. This lawsuit does not mean 

you will go to jail for not paying your credit card. However, if you receive a lawsuit notice, you should not ignore it. 

When a creditor sue a debtor in Florida, they are seeking to obtain a judgment against them. In other words, a judgment is a court order that allows them to take stronger actions to collect the debt. If a debtor does not answer and fight this lawsuit, a default judgment will be entered. 

Having a final judgment against a debtor allows a creditor to: 

  • Garnish wages
  • Garnish bank accounts 
  • Take a lien on the debtor’s property

If your creditors have a judgment against you, Florida law provides certain situations where your wages can be exempt from garnishment. Additionally, debt collection laws in Florida prohibits a creditor from contacting your employer unless they have a final judgment against you. 

Since they are debt collection actions, filing for bankruptcy can help you stop wage garnishment and discharge most judgments. Contact a bankruptcy attorney near you to explore your options. 

Florida Statute of limitations on credit card debt

In Florida, credit card debt has a statute of limitations of five years. If the statute of limitations has expired, creditors can no longer take any collection actions against the debtor. Usually, this time starts when the debt is reported as delinquent. 

As mentioned above, after five years, collection agencies can no longer attempt to collect your debt. However, making a payment or agreeing to a debt settlement may restart the statute of limitations. 

According to Florida law, the statute of limitations can be tolled if debtors leave the state, use a false name, hide, or perform other activities to avoid being served. In short, the Florida statute of limitations on debt is a sensitive matter that needs to be treated carefully. 

Can’t Pay Credit Card Debts in Florida? Speak to Our Florida Debt Relief Attorneys

At Z. Hernandez Law, we strive to help people to get the fresh financial start they certainly deserve. If you are considering filing bankruptcy due to your credit card debt in Florida, we may be able to help. Call (407) 900-8490 or use our contact form to book a consultation with a bankruptcy attorney.

We speak English and Spanish, and represent clients in the Middle District of Florida including Orange, Lake, Seminole, and Osceola Counties. 

Legal information reviewed by:
Zarina Hernandez | Founder & Attorney

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