How to Settle a Debt in Florida: Your 3-Step Action Plan

Facing a debt lawsuit in Florida feels overwhelming. You’re worried about your wages getting garnished or your bank account frozen.

Good news: you can settle at any stage of the lawsuit process. You’ll protect yourself from a judgment and move forward financially.

Debt settlement means paying an agreed amount to your creditor. In exchange, they dismiss the lawsuit against you. The remaining debt gets written off.

Most Americans carry debt from credit cards, auto loans, or mortgages. Job loss or medical emergencies can make payments impossible. Missing payments leads to collection calls and potential lawsuits.

Creditors often file lawsuits to recover what you owe. A judgment allows them to garnish wages and seize bank accounts. Settling before court prevents these harsh consequences.

Follow These 3 Steps to Settle Your Florida Debt

Debt settlement companies charge high fees and drag the process out for years. You can handle settlement yourself by following these steps.

Step 1: Respond to the Lawsuit With an Answer

Your creditor starts a lawsuit by filing a Complaint in court. The Complaint details why they’re suing you and how much you owe.

Florida law gives you 20 days to respond to the Complaint. Missing this deadline is like admitting fault. The court issues a default judgment against you automatically.

File an Answer to protect yourself. An Answer is your official response to each claim in the Complaint.

Include defenses like these in your Answer:

• The debt collector hasn’t properly verified the debt
• The statute of limitations has expired
• The amount claimed is incorrect
• You don’t recognize the debt

Filing an Answer buys you time to negotiate settlement. It shows the court you’re taking the lawsuit seriously.

Our partner Solo helps you draft and file your Answer in minutes.

Step 2: Send a Settlement Offer to Start Negotiations

Calculate how much cash you can access for settlement. Review your savings and upcoming paychecks. Consider selling unused items or asking family for help.

Research previous settlements involving your creditor or debt collector. Understanding their patterns helps you make smart offers.

Start by offering 60% or less of the total debt. Offering 60% shows you’re serious without leaving yourself broke. It also gives room for negotiation.

Expect your creditor to counter your initial offer. Prepare for several rounds of back-and-forth negotiation. Stand firm on amounts you can actually afford.

Never agree to payment terms you can’t meet. Breaking a settlement agreement means the lawsuit continues. Your creditor will likely win a judgment at that point.

Step 3: Get the Settlement Agreement in Writing

Never send money without a written settlement agreement first. Written contracts protect both parties and document the exact terms.

Your settlement agreement must include these details:

• Exact settlement amount
• Payment due date
• Payment transfer method
• Statement waiving creditor’s right to pursue additional action
• Confirmation that settlement ends your obligation completely

Prepare your agreement template before negotiations start. You’ll only need to fill in the specific settlement amount and terms.

Include space for notary signatures from both parties. Notarization adds legal credibility to your agreement.

Keep copies of all signed documents for your records. You’ll need proof that the debt was settled if questions arise later.

Example: Laura Settles Her Florida Furniture Debt

Laura receives notice of a lawsuit from AMC Furnishings. She owes $2,000 for unpaid furniture bills.

Laura files her Answer within Florida’s 20-day deadline. She then offers AMC Furnishings $1,200 to settle the debt.

AMC counters with $1,400. Laura accepts and insists on a written agreement before payment.

Once Laura pays the $1,400, AMC drops the lawsuit. They write off the remaining $600 she owed.

Florida Debt Collection Laws You Should Know

Florida follows the Fair Debt Collection Practices Act (FDCPA). The FDCPA protects consumers from abusive collection tactics.

Debt collectors cannot:

• Call you before 8 a.m. or after 9 p.m.
• Contact you more than seven times in seven days
• Threaten you with jail time for unpaid debts
• Use obscene or threatening language
• Tell your friends or family about your debts

Florida’s statute of limitations gives creditors five years to sue for most debts. After five years, they lose the right to file a lawsuit.

Judgments have a 20-year statute of limitations in Florida. Creditors can still send collection notices after the statute expires. They can also report negative information to credit bureaus.

The Federal Trade Commission regulates debt settlement companies under the Telemarketing Sales Rule. All debt relief companies must follow these rules nationwide.

Debt settlement companies cannot:

• Charge upfront fees before settling your debt
• Hide information about costs, timelines, and consequences
• Make false claims about their services

Best Methods to Contact Your Creditor

You can reach creditors by phone, email, or letter. Email works best for most people.

Email creates a written record of all communication. You’ll have time to consider your responses carefully. No pressure to answer questions immediately.

Phone calls work if you prefer direct conversation. Florida law requires consent from all parties before recording calls. Always ask permission before hitting record.

Regular mail takes longer but provides proof of contact. Send letters via certified mail with return receipt requested.

Why Our Partner Solo Beats Traditional Debt Settlers

Traditional debt settlement companies charge high fees and deliver slow results. Solo offers a better approach for people facing lawsuits.

Solo’s technology sends and receives settlement offers automatically. You don’t handle awkward negotiations with collectors. The system works on your behalf until reaching agreement.

You pay zero upfront fees with Solo. Fees only apply after successful settlement. Solo also manages your payment and settlement agreement paperwork.

Solo costs less than typical debt settlement agencies. We take an active approach instead of waiting for creditors to contact us.

Solo accepts debts of any size. Traditional settlers require $15,000 minimum debt to qualify. Solo helps whether you owe $500 or $50,000.

Other Debt Settlement Companies to Consider

Several established companies offer debt settlement services in Florida:

• Accredited Debt Relief: Programs last one to four years. Requires $7,500 minimum unsecured debt. Operates in 32 states. Charges 15-25% of total debt value.
• Pacific Debt Relief: Programs last one to four years. Requires $7,500 minimum unsecured debt. Operates in 32 states. Charges 15-25% of total debt value.
• Freedom Debt Relief: Operating since 2002 with over $10 billion settled. Charges 15-25% fees for services. One of America’s oldest debt settlement firms.

Additional Florida Debt Relief Resources

You have options beyond settlement for handling Florida debt problems. Understanding all your choices helps you make the best decision.

Bankruptcy eliminates many types of debt completely. Chapter 7 bankruptcy discharges most unsecured debts in three to six months. Chapter 13 creates a payment plan lasting three to five years.

Credit counseling agencies help you manage payments without settlement. Counselors negotiate lower interest rates with creditors. You make one monthly payment to the agency.

Debt validation forces collectors to prove they own your debt. Many collectors lack proper documentation. Requesting validation can make invalid lawsuits disappear.

Motion to compel arbitration moves your case out of court. Many credit card agreements include arbitration clauses. Arbitration often favors consumers over court proceedings.

Take Action Before Your Court Date

Debt lawsuits feel scary, but settlement offers a clear path forward. Respond with an Answer, negotiate a realistic settlement, and get everything in writing.

Acting quickly protects you from wage garnishment and bank levies. Settlement lets you avoid a judgment and start rebuilding financially.

You don’t need expensive lawyers or debt settlement companies. The right tools and information help you settle debt on your terms.

Our partner Solo provides technology that simplifies every step of the settlement process.