DEBT

WHAT HAPPENS IF I OWE MONEY WHICH I CANNOT PAY BACK?
Your creditors have a right to try and collect money which you owe them. However, you have a right not to be harassed or threatened by them in their collections efforts.

WHAT TYPE OF CREDITOR BEHAVIOR IS NOT ALLOWED?
Under Florida law, your creditors cannot do certain types of activities:

1. A creditor cannot threaten to have you thrown in jail for not paying your bills.
2. A creditor cannot threaten to use force or violence. He cannot use vulgar or obscene language.
3. A creditor cannot harass you or your family by making continuous phone calls. If you believe that you are being harassed by phone, make a record of the day, time, and length of every phone call and the name of the person who is making each call.
4. The creditor cannot call you at work if you tell him that you can be reached at home at a reasonable hour and you are at home during those hours.
5. If a creditor calls you, he must identify himself. He cannot pretend to be a law enforcement agent or an attorney.
6. The creditor cannot make false claims against you in an effort to get you to pay valid claims.
7. The creditor cannot reveal your debt problems to anyone without first telling you. He cannot disclose information concerning your debt problems to anyone who has no business need for the information.

The creditor cannot contact your employer without your permission unless he has obtained a court judgment against you.
If you believe that your rights are being violated by a creditor, you may bring suit against the creditor in circuit court. The judge may award you monetary damages, court costs, and attorney fees. However, if you lose your suit, the court may order you to pay your creditor's court costs and attorney fees if the judge feels you sued the creditor simply to harass him.

   

WHAT HAPPENS IF MY CREDITORS SUE ME IN ORDER TO COLLECT THE DEBT?
If you are sued, you will have the opportunity to defend yourself and explain why you are unable to pay your bills. However, even if you have a good reason why you could not pay on time, you may still owe the money. Your creditors do not have to accept partial payments. They may try to collect all of the money you owe them at one time. You should contact Legal Aid for possible assistance if you are sued. If your creditor obtains a judgment against you, you will be responsible for repaying the debt to the best of your ability. The creditor may be able to place a lien on some of your property. However, Florida law may give you some protection from debts owed to creditors.

CAN THE CREDITORS PUT ME OUT OF MY HOUSE AND TAKE ALL OF MY PROPERTY?
NO! Under Florida law, some of your property is protected from your creditors. If you own the home you live in, that house is protected by a homestead exemption. A homestead exemption exempts your home and 1/2 acre of property from forced sale. However, a lien may be placed on your home if you owe money for the purchase, improvement, or repair of the house or property. If a creditor who has a final judgment against you records a certified copy of the final judgment in the public records of Duval County, it will become a lien on the title to your home. This would mean that it may be necessary to pay the final judgment if you sell the property or try to get a mortgage secured by the property.

HOW DO I OBTAIN A HOMESTEAD EXEMPTION?
If a judgment creditor wants to sell the home to satisfy a judgment, the homeowner may make a statement in writing describing the home claimed to be exempt, and file it with the circuit court. The judge of the circuit court will decide whether or not it is exempt. If he decides that it is not, the home may be sold to repay the debts. You should probably consult with an attorney before filing your exemption. This different from a homestead exemption.

WHEN CAN I CLAIM HOMESTEAD EXEMPTION?
You may make a claim any time form the date of the judgment up until the day appointed for the sale of your house.

WHAT IF I OWN OTHER REAL PROPERTY BESIDES MY HOMESTEAD?
Any other real property that you own may be taken by a judgment creditor in order to satisfy a final judgment.

CAN MY WAGES BE GARNISHED?
The wages of a head of household may not be garnished. You are considered the head of your household if you live with and support a member of your family. It is also possible to be the head of a household if you are paying court-ordered support payments to dependents who do not live with you. Whether you are the head of your household depends upon your particular circumstances. The wages of someone not the head of household can only be garnished if the wages are greater than $127.50 per week. The maximum amount that can be garnished is 25% (one-fourth) of the "take-home" pay.

WHAT IF MY WAGES ARE GARNISHED (TAKEN OR SEIZED)?
If you are the head of your household, you have the right to contest the garnishment of your wages by your creditors. To contest the present garnishment of your wages, you would need to file an affidavit stating you are the main wage earner for your family with the Clerk of the Court. You may do this by going to the Clerk of the County/Circuit Court, Room 103 of the Duval County Courthouse. The clerk will provide an affidavit for you to use. You should mail or deliver a copy of the affidavit to the attorney who started the garnishment proceedings. You will also want to contact the judge's secretary to set up a hearing to have your head of household protection determined by the judge.

CAN I PROTECT MY PERSONAL PROPERTY FROM MY CREDITORS?
In many instances, yes. If your creditor does not have a judgment lien or security interest in your personal property, you can protect up to $1,000 of your personal property (including money in your bank account) from creditors. If you own more than $1,000 worth of personal property, you can select which $1,000 you wish to protect. If the sheriff levies ("takes") personal property or your bank account is garnished, see an attorney immediately to determine if those assets can be protected. Social Security, Unemployment, workers' compensation, and Veterans benefits are among the other protected sources of income.

Jacksonville Area Legal Aid, Inc.
126 W. Adams Street
Jacksonville, Fl 32202
(904) 356-8371