Debt Defense Attorney: Protecting Your Consumer Rights

What Types Of Debt Do You Typically Deal With?

Credit card debt is perhaps the most common type of debt that debt collectors pursue. However, it is not unusual to encounter various other debts, including medical debts, business loans, or vehicle deficiency. If a vehicle is surrendered or repossessed, the lender will often seek to collect any remaining balance on the loan.

What Is A Judgement? What Is A Default Judgement?

When a debt collector files a lawsuit to collect a debt and the consumer fails to respond, the collector can obtain what is known as a “Default.” This leads to a default judgment. Whether the judgment is obtained by default or after the consumer has responded, it empowers the collector to pursue special remedies to ensure payment. These remedies may include wage garnishment, vehicle levies, forced sale of homestead property, or seizing funds from an individual’s bank account.

What Is Wage Garnishment?

Wage garnishment occurs when a collector deducts money directly from an individual’s paycheck to satisfy a judgment. Typically, a creditor needs to obtain a judgment before implementing wage garnishment, except for some federally backed student loans. Wage garnishments are limited to 25% of gross wages. It’s important to note that gross income is considered, which can often amount to almost 50% of someone’s net wages. Certain protections, such as the head of household protection, may apply to exempt individuals from the full garnishment.

See also  Auto Defect Attorney

What Is The Statute Of Limitations For Debt Related Cases?

In Florida, the statute of limitations for written agreements is five years from the date of the breach, usually the date of the last payment. The statute of limitations sets the timeframe within which a company can file a lawsuit based on the debt. It’s a common misconception that a debt completely disappears once the statute of limitations has expired. In reality, the expiration only restricts the creditor from filing a new lawsuit. However, if a creditor attempts to collect on an old debt without disclosing that they can no longer sue, it can be considered deceptive. In some cases, consumers may even have the right to sue the debt collector if the debt is too old.

Should Someone Try To Work Out A Payment Plan Or Just Seek The Services Of An Attorney?

Consulting with an attorney is typically the best first step for consumers. While a workout plan may be suitable in some cases, it can also revive the statute of limitations if the debt was too old for the debt collector to pursue legally. Moreover, a consumer being sued may have multiple debts, making a workout plan impractical. In our firm, we offer a complimentary half-hour consultation where we review the consumer’s entire debt portfolio and provide tailored recommendations. The evaluation is cost-free, ensuring consumers can find the right solution for their needs.

Does Someone Actually Have To Go To Court In These Types Of Cases?

Generally, the court system favors individuals who show up and actively participate in their cases. Failing to attend court or lacking legal representation often results in a default judgment, leaving consumers without means to defend against collection efforts. However, it’s crucial to understand that consumers possess rights even if they owe the debt. The burden of proving the amount owed lies with the creditor, and oftentimes they struggle to meet that burden. Thus, the system favors those who actively participate and assert their rights.

See also  Defense Attorney Car Accident

Why Is A Debt Defense Attorney Preferable To A Debt Management Or Consolidation Company?

Debt consolidation strategies often concern me due to the potential risks involved. Some consolidation companies may advise individuals who are current on their payments to intentionally fall behind and default on their loans in hopes of reducing the debt, although it is not a guaranteed outcome. In contrast, a debt defense attorney focuses on a specific debt that is already delinquent. The attorney works to determine whether the consumer is responsible for the full debt balance or if there are legal defenses that may lead to reduction or complete elimination of the obligation.

Additional Information About Debt Defense In Florida

One aspect I want to emphasize is debt buyer lawsuits. Many times, consumers find themselves sued by companies they don’t recognize and have never done business with. There is a significant industry of debt collectors who acquire certain rights from the original debt originators and proceed to file lawsuits against debtors. Companies like Midland Funding and Portfolio Recovery Associates are prominent examples. Consumers sued by debt buyers often possess broader rights compared to typical debt defense cases, as the debt buyer must prove their legitimate right to pursue the consumer. In these instances, it is essential for consumers to protect their rights to avoid default judgments.

For more information on Debt Defense In Florida, visit Garrity Traina’s website for a free initial consultation. They can provide the information and legal answers you are seeking to better understand your options: Garrity Traina.