(The author of this article is not a lawyer, nor should this article be substituted for legal advice by a practicing attorney. For legal advice, please contact an attorney.)
debt settlement in Texas these concerns are very much diminished. Why is Florida debt settlement so preferable compared to a lot of other states? The reason is Florida has highly favorable debtor laws that give consumers a lot of rights and protections when it comes to past due unsecured accounts like medical bills, credit cards, repossessions, and personal loans.
How State Collection Laws Benefit Florida Debt Settlement
Every state has laws that say if a collections agency is collecting a debt, they are legally obligated to stop contacting a consumer if the consumer sends a Cease and Desist letter and/or a Power of Attorney notifying the collection agency that a third party is responsible for handling all communications with the creditor. Florida law takes it a step farther and not only limits harassment from collection agencies, but also from the original creditor as well. In most states, when a consumer falls behind on their payments and the debt is still being collected by the original creditor (the bank that originally lent you the money or the hospital that serviced you, for example), then the creditor is reserved the right to call the debtor on a daily basis in order to collect whatever is owed, and although debt settlement companies servicing these clients can very easily reduce the calls (changing of your phone number and address and notifying the creditor that you are seeking third party help, for example), no one can ever make the calls completely stop.
This is not the case however for Florida debt settlement clients. In Florida, the same law that deals with what collections agencies can and cannot do when collecting a debt also pertains to the original creditor. What does this mean in practice? It means that a debt settlement company servicing someone from Florida can easily get the calls to not only reduced, but completely eliminated all together (sometimes within days).
State Homestead and Garnishment Laws and How They Benefit Florida Debt Settlement
For Florida debt settlement clients, their wages and home are completely protected, which gives the creditor even more incentive to settle. Given the fact that creditors already have every incentive to settle even with clients who reside in states with less favorable debtor laws, Florida debt settlement clients are in an even stronger negotiating position with their creditors. What does this actually mean? Typically it means greater savings than what the average debt settlement in the United States. Let me explain.
Although the vast majority of cases settle, as anyone who has ever read a debt settlement contract will tell you---it’s impossible for a debt settlement company to guarantee that a client won’t be the target of any legal action by their creditors. After all, 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 “head of household” 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 Florida debt settlement clients. 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, debt settlement makes even more sense for the credit card companies, debt collection agencies, and consumers. In the end, debt settlement in Florida is an ideal solution for consumers overwhelmed with medical bills, credit card debt, personal loans, and repossessions.
Free Foreclosure Listings - The 100% Free Options
By: Hector Milla | 30/11/2009Do you know how many foreclosed homes are you in your neighborhood?
Needing 100% Free Foreclosure Listings?
By: Hector Milla | 30/11/2009With so many homes to choose from, using a free foreclosure listing service is the smart solution when making the decision to purchase a bank owned property.
Are 100% Free Foreclosure Listings Possible?
By: Hector Milla | 30/11/2009Do free foreclosure listings exist with no strings attached? You bet!
Finding the Right Foreclosure Listing Service
By: Hector Milla | 30/11/2009Finding the right foreclosure listing service can be a little difficult. There are so many services that are advertising right now you must be careful to choose the service right for you.
Free Foreclosure Listing - Favorite Tool Of The Pros
By: Hector Milla | 30/11/2009A free foreclosure list such as this is popular amongst people who are passionate about real estate.
Free Home Foreclosure Listing - Get the Best Out of No Cost Listings
By: Hector Milla | 30/11/2009Using a free home foreclosure listing service is a sweet deal for home buyers and investors.
Are Foreclosure Listing Sites Worth the Try?
By: Hector Milla | 30/11/2009You've heard people talking about them, you may have even come across one or two as your surfed the internet, but are foreclosure listing sites worth giving a try?
The Best Foreclosure Listing - At Little or No Cost
By: Hector Milla | 30/11/2009Anyone can find foreclosure listings for no cost. Public records are available online in many counties, but offer little real-world utility for evaluating opportunities.
Debt Settlement And Your Credit
By: Robert Zangrilli | 04/01/2007 | FinanceA relatively new approach to debt resolution, debt settlement or debt negotiation is the process of negotiating with creditors to lower the amount that you owe, typically by as much as 50 to 60 percent. A settlement offer is only attractive to a creditor when a consumer is behind on...
Key To Wealth-Building: Approaching Your Credit Rationally
By: Robert Zangrilli | 04/01/2007 | FinanceThe primary purpose of good credit is to save you money by helping you procure lower interest rates that otherwise wouldn't be available to you. Interestingly, some consumers fail to recognize this fact when considering the appropriate option for debt resolution. The main reason for this is a lot of...
Understanding Debt Negotiation
By: Robert Zangrilli | 29/12/2006 | Debt ConsolidationThis article gives an in depth look at the underlying dynamics of a successful debt negotiation program. Debt negotiation is an innovative way to eliminate credit card debt.
In Depth Look at Bankruptcy
By: Robert Zangrilli | 29/12/2006 | Debt ConsolidationThis article exposes some common misconceptions regarding bankruptcy. Not only will affect your credit negatively, but you may have to liquidate some of your property to pay back your creditors anyway.
Paying the Minimums on Credit Cards
By: Robert Zangrilli | 29/12/2006 | CreditThis article details the effects of just making the minimum payments on credit cards. More specifically, it shows that just making the minimums may also affect your credit negatively.
Debt Consolidation Help
By: Robert Zangrilli | 29/12/2006 | Debt ConsolidationThis article offers advice for consumers who are considering debt consolidation through a second mortgage. There are some risks to consider prior to getting a home equity debt consolidation loan.
Debt Settlement in the Sunshine State
By: Robert Zangrilli | 29/12/2006 | FinanceThis article offers information that is pertinent to consumers from Florida who are considering debt settlement.