QUESTION AND ANSWERS
FLORIDA DEBT COLLECTION
Why Retain A Debt Collection Law Firm To Collect On Overdue Account Receivables?
Debt collection law firms are generally able to provide clients with a "One Stop Shop For All Of Their Debt Collection Needs", which conventional debt collection agencies are typically unable to do. In this regard, debt collection law firms are able to give collection matters full coverage prior to, during, and subsequent to litigation. Debt collection law firms have an unspoken influence since they are able to commence lawsuits. Often times, this unspoken influence prompts a better response from debtors against whom the law firm is collecting an overdue account. As such, our debt collection lawyers are heavily involved in all aspects of case treatment. Accordingly, our debt collection lawyers make initial calls and sign initial demand letters, thereby imparting a higher degree of seriousness than would be perceived in those matters if handled by conventional debt collection agencies.
What Are The Costs Associated With Having A Collection Matter Handled By A Debt Collection Law Firm?
Dion & Forsyth, P.A. handles collection matters based on various types of fee agreements. The fee agreements typically include an hourly rate fee agreement or a contingency fee agreement arranged to best suit your particular needs. An hourly rate fee agreement means that payment for the legal services is based on the total number of hours that the debt collection lawyer(s) spend(s) handling a particular collection matter. The payment is then the result of multiplying the total number of hours spent handling the collection matter by the attorney's hourly rate. In contrast, a contingency fee agreement means that payment for the law firm's legal services depends, or is contingent, upon there being some monetary recovery in a debt collection matter. The payment to the law firm for its legal services is then a percentage of the recovered amount.
If the collection matter proceeds to litigation, then the client is responsible for associated court costs. Court costs vary depending on the balance, number of defendants, and other costs imposed by the courts. In the state of Florida, the court costs can range from $300.00 to $800.00 in order to commence a lawsuit and take it to judgement.
Can A Debtor Be Forced To Pay A Creditor’s Attorney’s Fees And Court Costs Incurred In Litigation To Collect A Debt?
The short answer is no, unless provided for by state statute or by a contractual provision. Pursuant to state statute,reimbursement for court costs can be awarded in the judgment. However, reimbursement for attorney’s fees in a collection matter will depend on whether the contract between the parties contains a provision awarding attorney’s fees to the prevailing party.
Can A Corporation Represent Itself In A Lawsuit For Collection Of A Debt?
While both an individual and a business entity can represent itself in small claims court, once the claim amount exceeds $5,000.00 and enters into county or circuit civil court the business entity must be represented by a licensed attorney.
What Happens Once A Judgment Is Obtained In A Lawsuit On A Debt Collection Matter?
While in some instances the judgment will result in the debtor making payment to satisfy the judgment, in many instances further steps must be taken by the debt collection lawyer to obtain payment, whether that be voluntarily or involuntarily. Further steps may include formal discovery proceedings designed to ascertain the availability and location of assets, placing liens on real and personal property, garnishment proceedings against wages and bank accounts, and levy and attachment to seize assets.
What Kind Of Property Is Exempt From Claims Of Creditors Collecting On Judgments?
In general real property is exempt from claims of creditors collecting on judgment if it is homesteaded. There are also limited exemptions for personal property. With regard to claims against wages and bank accounts, the most common exemption is the head of household exemption which protects wages of the head of the family, to an extent. Other common exemptions which are exempt from creditor claims include life insurance proceeds, disability income and workers compensation benefits, pension money and retirement or profit-sharing benefits, funds in a Florida Pre-Paid College Trust Fund or Medical Savings Account. There is also property which is immune from claims including property interests held as tenants by the entireties, joint tenancy, tenancy in common, and joint bank accounts. As with any legal proceeding, one should seek legal advice regarding the availability and application of these exemptions.
When Should I Contact A Debt Collection Lawyer About Collections On My Account Receivables?
It is common practice to place overdue accounts for collections within 90 to 120 days of delinquency. As a rule of thumb, the longer an outstanding account remains unpaid the lower the percentage rate of recovery on an account.
What Measures Can A Potential Creditor Take To Reduce The Possibility Of Unpaid Delinquent Accounts?
Businesses involved in extending credit should have a written credit application for its customers to complete prior to the actual extension of credit. These applications should request information regarding all principal individuals or corporate officers, if applicable, their addresses, credit references, real property and other assets owned, and outstanding liabilities. The credit application should also clearly and concisely state the credit terms, as well as provide a space for the customer to sign. Another clause to consider including in the application is an unconditional guarantee by the officers of a corporation for the payment of all debts owed to the creditor by the corporation. Additionally, a credit application can contain an agreement between the parties which stipulates that the customer will be responsible for collections costs, including reasonable attorney’s fees, in the event an account is handed over for collection. A complete credit application is an invaluable tool in the actual collection process.
FLORIDA JUDGEMENT COLLECTION
How Can You Collect A Judgment That Is Obtained In One State When The Debtor Moves Or Has Property In A Different State?
The judgment must be domesticated in the state to which the property or debtor has moved through a court process. The creditor or his attorney must file an Affidavit and provide 30 days notice to the debtor. If the 30 days pass without objection, then the creditor may move through the collection process as if the judgment was always in the new state.
How Does A Bankruptcy Filing Affect Your Judgment?
Once a debtor files a bankruptcy, an automatic stay is placed on all collections. Under limited circumstances, such as foreclosure proceedings or replevins wherein the creditor is a lien holder, you can request a lift from stay from the bankruptcy court. Additionally, some judgments are not dischargeable in bankruptcy and you can request relief from the bankruptcy court to pursue the judgment or have it declared not-dischargeable.
Is It Always Cost Effective To Pursue Collection Of A Judgment?
No. It is not always cost effective to pursue collection of a judgment. In essence, the creditor must make a decision as to the collectability of the debtor by reviewing their financial situation and personal situation. For example, if the debtor is a retired individual living off of social security, then you may not want to pursue that person. If the person is a young man or woman with a 16 year old child, then you may want to continue to pursue the judgment since they may be collectable in the future. In essence, you do not want to throw good money after a dead judgment.
What Information Is Required In Order To Pursue The Replevin Of Property?
A creditor who has a valid lien on property (such as a boat or motor vehicle) and wishes to repossess the vehicle, however is unable to do so peacefully, may need the court’s involvement and must have certain documentation in order to do so. First, the creditor must have a valid location of the whereabouts of the property. Second, the creditor must have the contract and lien information. Finally, the creditor must show the VIN number and the blue book value of the property. Be aware that a Break Order is also required by the court if the property is located inside a garage or behind gates. If a prejudgment replevin is required, then an Affidavit must be presented indicating that the property is essentially in danger of being moved or destroyed.
How Do You Obtain A Lien In Florida After You Obtain Your Judgment?
The judgment must be recorded in each county where the debtor has real property. The creditor must submit a certified copy of the judgment to that county’s recording department and then it shall be recorded for that particular county. To obtain a lien on personal property, the creditor must record it in the judgment registry with the Secretary of State in essentially the same way they would record a UCC lien. The judgment is good 20 years in Florida and must be re-recorded within a certain time period in accordance with the Florida statutes.
Does It Cost Money To Collect Your Judgment?
Most creditors have already spent funds obtaining the judgment. Unfortunately, the fight is not over and it shall cost more funds if the debtor does not voluntarily pay. Each court remedy, such as bank or wage garnishment, levy on real or personal property, or attachments, all cost additionally funds. Finally, if you are still searching for assets to collect upon, the depositions will also cost the creditor more money. The costs range from $100.00 and up depending on what remedies are pursued.
FLORIDA LANDLORD AND TENANT
Does The Landlord Waive Their Right To Evict A Tenant If The Tenant Misses A Payment And Then Cures It?
According to Florida. Statute 83.56 if the landlord accepts the rental payment after default, the landlord has waived his right to evict a tenant for that instance of default.
What Steps Must Be Taken By The Landlord In Order To Begin The Eviction Process Due To A Non-Compliance That Is Not Curable, Such As Damage To The Property?
Florida Statute 83.56 dictates the steps to be taken by the landlord to evict a tenant. If the eviction is because of a non-compliance with the lease agreement (other than failure to pay rent), the landlord or his attorney must submit a letter to the tenant providing 7 days to vacate the premises. This applies in a non-curable situation, such as (a) damage to the property or (b) if the violation is reoccurring and the landlord has provided written notice of the noncompliance within the prior 12 months.
What Steps Must Be Taken By A Landlord In Order To Begin The Eviction Process Due To A Non-Compliance That Is Curable (Such As A Guest Violation)?
Florida Statute 83.56 dictates the steps to be taken by the landlord to evict a tenant. If the eviction is based upon a curable non-compliance (such as sanitary reasons or having a pet contrary to the lease provisions), then a 7 day letter shall be provided to the tenant allotting them 7 days to cure the non-compliance. If after seven days the non-compliance has not been cured the landlord may begin eviction proceedings.
What Steps Must Be Taken By A Landlord In Order To Begin The Eviction Process For Failure To Pay Rent?
Florida Statute 83.56 dictates the steps to be taken by the landlord to evict a tenant. If the eviction is based upon the failure to pay rent, the landlord shall send the tenant a 3 day notice to pay rent or vacate the premises.
Does A Landlord Or A Tenant Have A Right To Collect Attorney Fees For A Breach Of The Lease Agreement?
Florida Statute 83.48 dictates that the prevailing party shall be entitled to an award of attorney fees by the court.
Can A Tenant Terminate The Rental Agreement?
Yes. A tenant has the right to terminate the rental agreement if the landlord is not in compliance. In accordance with Florida Statute 83.51 and 83.56, the tenant must send the landlord a 7 day notice to cure letter specifying the non-compliance.
Why Retain A Debt Collection Law Firm To Collect On Overdue Account Receivables?
Debt collection law firms are generally able to provide clients with a "One Stop Shop For All Of Their Debt Collection Needs", which conventional debt collection agencies are typically unable to do. In this regard, debt collection law firms are able to give collection matters full coverage prior to, during, and subsequent to litigation. Debt collection law firms have an unspoken influence since they are able to commence lawsuits. Often times, this unspoken influence prompts a better response from debtors against whom the law firm is collecting an overdue account. As such, our debt collection lawyers are heavily involved in all aspects of case treatment. Accordingly, our debt collection lawyers make initial calls and sign initial demand letters, thereby imparting a higher degree of seriousness than would be perceived in those matters if handled by conventional debt collection agencies.
What Are The Costs Associated With Having A Collection Matter Handled By A Debt Collection Law Firm?
Dion & Forsyth, P.A. handles collection matters based on various types of fee agreements. The fee agreements typically include an hourly rate fee agreement or a contingency fee agreement arranged to best suit your particular needs. An hourly rate fee agreement means that payment for the legal services is based on the total number of hours that the debt collection lawyer(s) spend(s) handling a particular collection matter. The payment is then the result of multiplying the total number of hours spent handling the collection matter by the attorney's hourly rate. In contrast, a contingency fee agreement means that payment for the law firm's legal services depends, or is contingent, upon there being some monetary recovery in a debt collection matter. The payment to the law firm for its legal services is then a percentage of the recovered amount.
If the collection matter proceeds to litigation, then the client is responsible for associated court costs. Court costs vary depending on the balance, number of defendants, and other costs imposed by the courts. In the state of Florida, the court costs can range from $300.00 to $800.00 in order to commence a lawsuit and take it to judgement.
Can A Debtor Be Forced To Pay A Creditor’s Attorney’s Fees And Court Costs Incurred In Litigation To Collect A Debt?
The short answer is no, unless provided for by state statute or by a contractual provision. Pursuant to state statute,reimbursement for court costs can be awarded in the judgment. However, reimbursement for attorney’s fees in a collection matter will depend on whether the contract between the parties contains a provision awarding attorney’s fees to the prevailing party.
Can A Corporation Represent Itself In A Lawsuit For Collection Of A Debt?
While both an individual and a business entity can represent itself in small claims court, once the claim amount exceeds $5,000.00 and enters into county or circuit civil court the business entity must be represented by a licensed attorney.
What Happens Once A Judgment Is Obtained In A Lawsuit On A Debt Collection Matter?
While in some instances the judgment will result in the debtor making payment to satisfy the judgment, in many instances further steps must be taken by the debt collection lawyer to obtain payment, whether that be voluntarily or involuntarily. Further steps may include formal discovery proceedings designed to ascertain the availability and location of assets, placing liens on real and personal property, garnishment proceedings against wages and bank accounts, and levy and attachment to seize assets.
What Kind Of Property Is Exempt From Claims Of Creditors Collecting On Judgments?
In general real property is exempt from claims of creditors collecting on judgment if it is homesteaded. There are also limited exemptions for personal property. With regard to claims against wages and bank accounts, the most common exemption is the head of household exemption which protects wages of the head of the family, to an extent. Other common exemptions which are exempt from creditor claims include life insurance proceeds, disability income and workers compensation benefits, pension money and retirement or profit-sharing benefits, funds in a Florida Pre-Paid College Trust Fund or Medical Savings Account. There is also property which is immune from claims including property interests held as tenants by the entireties, joint tenancy, tenancy in common, and joint bank accounts. As with any legal proceeding, one should seek legal advice regarding the availability and application of these exemptions.
When Should I Contact A Debt Collection Lawyer About Collections On My Account Receivables?
It is common practice to place overdue accounts for collections within 90 to 120 days of delinquency. As a rule of thumb, the longer an outstanding account remains unpaid the lower the percentage rate of recovery on an account.
What Measures Can A Potential Creditor Take To Reduce The Possibility Of Unpaid Delinquent Accounts?
Businesses involved in extending credit should have a written credit application for its customers to complete prior to the actual extension of credit. These applications should request information regarding all principal individuals or corporate officers, if applicable, their addresses, credit references, real property and other assets owned, and outstanding liabilities. The credit application should also clearly and concisely state the credit terms, as well as provide a space for the customer to sign. Another clause to consider including in the application is an unconditional guarantee by the officers of a corporation for the payment of all debts owed to the creditor by the corporation. Additionally, a credit application can contain an agreement between the parties which stipulates that the customer will be responsible for collections costs, including reasonable attorney’s fees, in the event an account is handed over for collection. A complete credit application is an invaluable tool in the actual collection process.
FLORIDA JUDGEMENT COLLECTION
How Can You Collect A Judgment That Is Obtained In One State When The Debtor Moves Or Has Property In A Different State?
The judgment must be domesticated in the state to which the property or debtor has moved through a court process. The creditor or his attorney must file an Affidavit and provide 30 days notice to the debtor. If the 30 days pass without objection, then the creditor may move through the collection process as if the judgment was always in the new state.
How Does A Bankruptcy Filing Affect Your Judgment?
Once a debtor files a bankruptcy, an automatic stay is placed on all collections. Under limited circumstances, such as foreclosure proceedings or replevins wherein the creditor is a lien holder, you can request a lift from stay from the bankruptcy court. Additionally, some judgments are not dischargeable in bankruptcy and you can request relief from the bankruptcy court to pursue the judgment or have it declared not-dischargeable.
Is It Always Cost Effective To Pursue Collection Of A Judgment?
No. It is not always cost effective to pursue collection of a judgment. In essence, the creditor must make a decision as to the collectability of the debtor by reviewing their financial situation and personal situation. For example, if the debtor is a retired individual living off of social security, then you may not want to pursue that person. If the person is a young man or woman with a 16 year old child, then you may want to continue to pursue the judgment since they may be collectable in the future. In essence, you do not want to throw good money after a dead judgment.
What Information Is Required In Order To Pursue The Replevin Of Property?
A creditor who has a valid lien on property (such as a boat or motor vehicle) and wishes to repossess the vehicle, however is unable to do so peacefully, may need the court’s involvement and must have certain documentation in order to do so. First, the creditor must have a valid location of the whereabouts of the property. Second, the creditor must have the contract and lien information. Finally, the creditor must show the VIN number and the blue book value of the property. Be aware that a Break Order is also required by the court if the property is located inside a garage or behind gates. If a prejudgment replevin is required, then an Affidavit must be presented indicating that the property is essentially in danger of being moved or destroyed.
How Do You Obtain A Lien In Florida After You Obtain Your Judgment?
The judgment must be recorded in each county where the debtor has real property. The creditor must submit a certified copy of the judgment to that county’s recording department and then it shall be recorded for that particular county. To obtain a lien on personal property, the creditor must record it in the judgment registry with the Secretary of State in essentially the same way they would record a UCC lien. The judgment is good 20 years in Florida and must be re-recorded within a certain time period in accordance with the Florida statutes.
Does It Cost Money To Collect Your Judgment?
Most creditors have already spent funds obtaining the judgment. Unfortunately, the fight is not over and it shall cost more funds if the debtor does not voluntarily pay. Each court remedy, such as bank or wage garnishment, levy on real or personal property, or attachments, all cost additionally funds. Finally, if you are still searching for assets to collect upon, the depositions will also cost the creditor more money. The costs range from $100.00 and up depending on what remedies are pursued.
FLORIDA LANDLORD AND TENANT
Does The Landlord Waive Their Right To Evict A Tenant If The Tenant Misses A Payment And Then Cures It?
According to Florida. Statute 83.56 if the landlord accepts the rental payment after default, the landlord has waived his right to evict a tenant for that instance of default.
What Steps Must Be Taken By The Landlord In Order To Begin The Eviction Process Due To A Non-Compliance That Is Not Curable, Such As Damage To The Property?
Florida Statute 83.56 dictates the steps to be taken by the landlord to evict a tenant. If the eviction is because of a non-compliance with the lease agreement (other than failure to pay rent), the landlord or his attorney must submit a letter to the tenant providing 7 days to vacate the premises. This applies in a non-curable situation, such as (a) damage to the property or (b) if the violation is reoccurring and the landlord has provided written notice of the noncompliance within the prior 12 months.
What Steps Must Be Taken By A Landlord In Order To Begin The Eviction Process Due To A Non-Compliance That Is Curable (Such As A Guest Violation)?
Florida Statute 83.56 dictates the steps to be taken by the landlord to evict a tenant. If the eviction is based upon a curable non-compliance (such as sanitary reasons or having a pet contrary to the lease provisions), then a 7 day letter shall be provided to the tenant allotting them 7 days to cure the non-compliance. If after seven days the non-compliance has not been cured the landlord may begin eviction proceedings.
What Steps Must Be Taken By A Landlord In Order To Begin The Eviction Process For Failure To Pay Rent?
Florida Statute 83.56 dictates the steps to be taken by the landlord to evict a tenant. If the eviction is based upon the failure to pay rent, the landlord shall send the tenant a 3 day notice to pay rent or vacate the premises.
Does A Landlord Or A Tenant Have A Right To Collect Attorney Fees For A Breach Of The Lease Agreement?
Florida Statute 83.48 dictates that the prevailing party shall be entitled to an award of attorney fees by the court.
Can A Tenant Terminate The Rental Agreement?
Yes. A tenant has the right to terminate the rental agreement if the landlord is not in compliance. In accordance with Florida Statute 83.51 and 83.56, the tenant must send the landlord a 7 day notice to cure letter specifying the non-compliance.
Dion & Forsyth, P.A.
5500 Military Trail, Ste. 22-258, Jupiter, Florida 33458
Toll Free Telephone Number: (877) 640-4802
Toll Free Facsimile Number: (855) 402-8672
Hablamos Español
© Dion & Forsyth, P.A.. All rights reserved.
The hiring of a lawyer is an important decision that should not be based solely upon advertisements. Before you decide, ask us to send you free written information about our qualifications and experience. This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. We may provide links to other sites that are for useful or informative purposes only. These links do not constitute an endorsement, sponsorship or recommendation of any information, products or services found therein. Also, please be aware that we are not responsible for the content or privacy practices of such other sites.
5500 Military Trail, Ste. 22-258, Jupiter, Florida 33458
Toll Free Telephone Number: (877) 640-4802
Toll Free Facsimile Number: (855) 402-8672
Hablamos Español
© Dion & Forsyth, P.A.. All rights reserved.
The hiring of a lawyer is an important decision that should not be based solely upon advertisements. Before you decide, ask us to send you free written information about our qualifications and experience. This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. We may provide links to other sites that are for useful or informative purposes only. These links do not constitute an endorsement, sponsorship or recommendation of any information, products or services found therein. Also, please be aware that we are not responsible for the content or privacy practices of such other sites.