This page was written, edited, reviewed & approved by Emil J. Fleysher following our comprehensive editorial guidelines. Emil J. Fleysher, the Founding Partner, has 15+ years of legal experience as a bankruptcy attorney. Our last modified date shows when this page was last reviewed.
Debt can become overwhelmingly quickly. Many Florida residents, feels stuck, unsure of how to catch up. Minimum monthly payments barely move the needle. As the interest adds up, it can feel like there's no way out.
Fleysher Law Bankruptcy & Debt Attorneys helps people find real debt relief. We offer clear options, explain what to expect, and guide you every step of the way. Our law firm has worked with Florida residents across many financial situations. If you're buried in credit card debt or struggling with personal loans, our experienced team can help you find the best path forward.
We understand that every case is different. That’s why we take the time to understand your financial situation before recommending a plan. If a debt settlement program is the right fit, we’ll help you settle debts and avoid unnecessary stress.
Debt settlement is a way to lower the total amount you owe on your unsecured debt. Instead of paying the full balance, you or a debt relief company try to reach an agreement with your creditors to accept a smaller lump sum.
This can help you avoid bankruptcy and move toward being debt free without making years of high-interest payments. Many Florida residents consider this option when credit card debt or personal loans become too much to handle. It may also help if you’ve missed payments and don’t see a way to catch up.
When done with the help of an experienced attorney or a certified debt specialist, debt settlement can give you a clearer path forward. The goal is to reduce your total debt while helping you manage one monthly payment that fits your budget. Florida debt relief laws allow for this option, and when used wisely, it may protect your financial future.
In a typical Florida debt settlement, you stop making payments to your creditors directly. Instead, you begin saving money in a separate account. Once there’s enough saved, your debt relief company or attorney reaches out to your creditors and offers a lump sum payment for less than the full balance. If the creditor agrees, you pay the reduced amount, and the remaining debt is forgiven.
Keep in mind, not every creditor agrees to settle. Also, missed payments may harm your credit score during this process. However, if you're already behind, debt settlement may still help more than hurt, especially compared to ongoing late fees or lawsuits.
Here's a clear comparison of the two:
Feature | Debt Settlement | Debt Consolidation |
|---|---|---|
Goal | Reduce the total debt you owe | Combine multiple debts into one loan |
Monthly Payment | May involve saving money monthly for lump payments | One monthly payment to lender |
Effect on Credit | May lower score in the short term | Less impact if payments are made on time |
Type of Debt | Works best for unsecured debt like credit card debt | Works for multiple debt types if eligible |
Requires Loan? | No | Yes – requires new loan with better interest rates |
Length of Program | Often 2 to 4 years | Depends on the loan terms |
Result | Debts are marked “settled” on your credit report | Debts are paid in full, marked “paid” on credit report |
Debt settlement can be a better choice than bankruptcy if you have some income, want to avoid a court filing, and are willing to deal with a temporary credit score drop. While Chapter 7 or Chapter 13 bankruptcy may wipe out certain debts, they also involve court appearances, legal fees, and a longer impact on your credit report.
If you’re behind on credit card payments or personal loan debt, but not completely overwhelmed by all your debts, then debt settlement might allow you to avoid bankruptcy entirely. It also avoids the public record of filing bankruptcy, which can impact job searches or rental applications.
In many cases, Florida debt relief through settlement is chosen by people who want a fresh start but do not qualify for Chapter 7 due to income or do not want the longer-term repayment structure of Chapter 13. A trusted Florida debt attorney can help you compare these options and decide what’s truly in your best interests.
Yes, debt settlement programs are legal in Florida, but they are carefully regulated to protect consumers. The state has specific laws in place to make sure that debt relief services are honest, licensed, and follow fair business practices.
If you’re considering this option, it’s important to understand how these laws work so you don’t fall victim to scams or pay more than necessary.
In Florida, companies that offer debt relief must follow strict rules under both state and federal laws. These include the Florida Debt Relief Act and parts of the Florida Consumer Collection Practices Act. These laws are meant to stop unfair or abusive practices by debt relief companies. They also make sure the services offered are clearly explained, especially when it comes to fees, timelines, and realistic outcomes.
Any company offering Florida debt settlement must be upfront about the total cost of the service. They cannot charge large fees before settling your debts. These laws are in place to protect you from shady operators who promise quick fixes but fail to deliver any real debt relief.
Debt settlement companies in Florida must be properly licensed if they are collecting or managing payments on behalf of consumers. This means they are required to register with the state and follow guidelines for holding your money in separate trust accounts.
They are not allowed to charge upfront fees unless they are an attorney providing legal services. Most companies can only charge fees after they have successfully reached a settlement with one or more of your creditors. The fees are often based on how much debt was reduced or how much you save, not just on your total debt amount.
These limits help keep debt relief programs fair and honest, especially for Florida residents already dealing with financial hardship.
As a Florida consumer, you have the right to clear information about any debt settlement program before you agree to join. You must be given a written agreement that explains all the terms, fees, and services. You also have the right to cancel your contract within a certain time frame without penalty.
Debt settlement companies must also follow fair debt collection laws. That means they can’t make false claims about your debt or pressure you to sign up for something that doesn’t match your financial situation. You also have the right to ask for help from a certified debt specialist or attorney before you make any major decisions about your debt.
Understanding your rights helps you avoid scams and work with a program that truly has your best interests in mind.
Debt settlement is usually used for unsecured debt, which means the debt is not tied to your home, car, or other property. Florida residents struggling with different types of debt may qualify to settle those balances for less than what is owed.
Some of the most common types of debt that can be reduced through settlement programs are:
Credit card debt is the most common type of unsecured debt that can be settled. When monthly payments are missed, and interest rates start to pile up, many people fall behind. Credit card companies may agree to settle your account if they believe you are unable to pay the full balance. This allows you to avoid ongoing late fees and stop the debt from growing.
Many Florida residents face overwhelming medical bills after a serious illness or emergency. Even with insurance, high deductibles and unexpected procedures can lead to thousands of dollars in unpaid debt.
Medical providers and collection agencies are often open to negotiating lower lump sum payments. Settling medical debt can help reduce stress and make your financial situation more manageable.
Unsecured personal loans, including lines of credit, can also be settled in many cases. If you have fallen behind on payments or cannot keep up with interest, your lender may accept a smaller payoff amount to close the account. This can provide fast relief from high monthly payments and stop collection calls.
While federal student loans cannot be settled in most situations, private student loans may be negotiable. Private lenders are not as limited by federal rules, and they may be willing to work out a reduced payoff if you can show financial hardship. Keep in mind, these settlements can still impact your credit and may involve tax consequences.
Debt settlement can be a helpful tool for many Florida residents who are dealing with serious financial hardship. However, it’s important to understand both the benefits and the risks before committing to any program.
Every situation is different, so knowing what to expect can help you make the right choice for your financial future.
One of the biggest benefits of debt settlement is that it can reduce the total amount you owe. Many creditors are willing to accept less than the full balance, especially if you’ve fallen behind and they believe you may file for bankruptcy.
Another major benefit is that debt settlement may help you avoid filing bankruptcy altogether, which can be a more serious step with long-term consequences. A debt settlement program can also simplify your financial life by combining your debts into one monthly payment that fits your current income and budget.
There are also some real drawbacks to consider.
First, your credit score will likely drop once you stop making payments and enter a debt settlement plan. Missed payments and settled accounts are both negative marks on your credit report.
Second, while you're trying to settle your debt, creditors may still sue you to collect the full amount. Legal action can lead to wage garnishment or frozen bank accounts. Finally, you could face tax consequences. The IRS may count forgiven debt as income, which means you could owe taxes on the amount you no longer have to pay.
Debt settlement is just one of several debt relief options available to Florida residents. For example, a debt management plan through a credit counseling agency can help you pay off your debt with lower interest but without reducing the total owed.
A debt consolidation loan can roll all your debts into one with a single interest rate, but you still have to pay back the full amount. In contrast, Chapter 7 bankruptcy can wipe out certain debts entirely, but comes with long-lasting effects on your credit and legal records.
Choosing the right solution depends on how much debt you have, your income, and your long-term goals.
Choosing the right debt settlement program is important because not all companies follow the rules or have your best interests in mind. Some may charge high fees without providing real help. Others may not be licensed to operate in Florida. Taking time to research and ask questions can protect your money and your financial future.
In Florida, debt settlement companies must follow strict laws to protect consumers. However, not every company follows those rules. Some may promise quick results but fail to settle your debts or return your money.
Others may not be registered with the state or may ask for upfront payments, which is not allowed. Always check with the Florida Attorney General’s Office or the Better Business Bureau to make sure the company is legal and has good reviews from other Florida residents.
The process of settling debt in Florida involves several key steps. Each one is designed to help you reduce what you owe, avoid filing bankruptcy, and move toward financial stability. Knowing what to expect during this process can help you feel more confident and prepared as you move forward with your chosen debt relief program.
Your first step is to schedule an initial consultation with a debt relief professional or a Florida debt attorney. During this meeting, you’ll talk about your current financial situation, including your total debt, income, and expenses.
The attorney or specialist will review your credit card debt, personal loans, and any other unsecured debt. After the review, they will let you know whether debt settlement is a good fit for your needs or if other debt relief options, like credit counseling or bankruptcy, might be better.
Once you begin the debt settlement process, you’ll usually be asked to stop making payments to your creditors. This can be stressful, but it’s part of the strategy to show that you're in serious financial hardship.
The settlement company or your attorney will then contact your creditors and begin negotiating lower lump-sum payments. The goal is to reach an agreement where you pay less than what you originally owed. This can help reduce the overall amount of your debt and avoid interest continuing to grow.
After a settlement is reached with each creditor, you’ll be required to make the agreed payment, usually as a lump sum or through a short-term payment plan. Once your payments are complete, it’s important to get a written confirmation that the debt has been settled.
This document proves that the creditor has accepted the terms and that you no longer owe the remaining balance. Keep this letter in a safe place, as it can protect you from future collection attempts or credit report errors.
Debt settlement can impact your credit score, especially in the short term. When you stop making payments, your credit history shows missed payments, which lowers your score. However, many Florida residents choose settlement because it allows them to avoid bankruptcy and resolve debts they can no longer afford. Once completed, you can take steps to rebuild your credit over time.
When you begin the debt settlement process, your credit score will likely drop. This is because most settlement programs require you to stop paying creditors while negotiations happen. Missed payments hurt your credit, and accounts may be marked as delinquent or in collections. This short-term damage is expected but can be repaired later with the right steps.
Debt settlements typically stay on your credit report for up to seven years. Even if you settle your credit card debt or personal loan debt, the record of the settlement will still appear. However, over time, the impact becomes less severe.
As you pay other bills on time and improve your overall financial health, your credit score can gradually rise again.
After your debts are settled, rebuilding your credit becomes the next goal. Start by paying all future bills on time. Avoid maxing out your credit cards, and try to keep balances low. You might also consider using a secured credit card or working with a certified credit counselor to improve your credit habits. Over time, these actions will help strengthen your credit report and boost your score.
Debt settlement is not the only option for those struggling with high credit card debt or other unsecured debt. Depending on your situation, other Florida debt relief programs might be a better fit. These include structured plans, legal options, and educational support to help improve your financial health.
Debt management plans are often offered through a certified credit counseling agency. These programs allow you to make one monthly payment, which the agency then distributes to your creditors. They may also negotiate lower interest rates.
These plans help avoid bankruptcy and make it easier to pay off debt without as much damage to your credit score.
If you're facing severe financial hardship, bankruptcy might be the right legal option. Chapter 7 bankruptcy helps eliminate many types of unsecured debt, while Chapter 13 creates a structured repayment plan over three to five years.
Both options are guided by bankruptcy law and may offer protection from debt collectors and lawsuits.
Credit counseling services give Florida residents the tools and education they need to take control of their finances. These services can help you understand your options, create a budget, and build a plan to pay off your debts.
Working with a reputable credit counseling organization can be a smart step toward a brighter financial future.
1. Can I settle my mortgage debt through a debt settlement program?
No, mortgage debt is a secured debt, which means it is tied to your home. Debt settlement programs typically work for unsecured debts like credit cards, medical bills, or payday loans. If you're struggling with mortgage payments, you may want to speak with a financial institution or attorney about loan modification or foreclosure alternatives.
2. What’s the difference between a debt management program and debt settlement?
A debt management program is a structured repayment plan set up by a reputable credit counseling agency. You make one monthly payment, and they distribute it to your creditors—often with lower interest rates. Debt settlement, on the other hand, involves negotiating a reduced lump sum to pay off existing debts.
3. What is the average credit card debt in Florida?
The average credit card debt in Florida changes each year but usually falls between $5,000 and $8,000 per person. If you're paying only minimum monthly payments and struggling with credit card interest rates, you may benefit from reviewing your debt relief options or speaking with a certified debt specialist.
4. Are there laws that protect me from aggressive debt collectors?
Yes. The Fair Debt Collection Practices Act and Florida consumer collection practices laws protect you from harassment, threats, or misleading communication from debt collectors. If you're being treated unfairly, report the issue and speak with a legal professional or your credit counseling service.
5. Can credit unions help with debt?
Yes. Many credit unions offer debt consolidation loans with lower interest rates than credit cards. These loans can be used to combine high-interest auto loans, credit cards, or even home equity loans. It’s important to work with a lender or credit counselor who understands your financial goals.
If you're dealing with overwhelming debt, you don’t have to figure it out alone. Fleysher Law Bankruptcy & Debt Attorneys helps Florida residents explore real solutions that fit their financial needs. Whether you're behind on credit cards, loans, or struggling to pay secured debts like your mortgage or car loan, we can guide you through your legal options with clarity and care.
Our team offers a free debt analysis to review your current situation and help you decide what steps are best for you. We explain every option in plain language, so you can feel confident making the right decision for your future.
We also believe in financial education. That’s why we work to empower our clients, not just with relief today, but with the tools to build lasting financial health. Contact our office today to schedule your free consultation and get the support you need.
Emil specializes in consumer bankruptcy, debt settlement, and mortgage modification, offering a holistic approach to solving mortgage and debt problems. Emil listens to clients, understands their circumstances and goals, and helps them make the right choices by presenting all options and contingencies.
He is dedicated to helping South Floridians regain their financial freedom from overwhelming debt caused by high interest credit cards, bad mortgage loans, and uninsured medical expenses.
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