Florida Debt Collection Law Blog

For debt collectors, recovering assets can be challenging in many different ways. However, there are times when it can be especially difficult to recover debts, such as instances where a debtor intentionally does everything they can to evade debt collection through fraudulent activity. For many debt collectors in Florida, this is a reality that is all too common, and a number of roadblocks may emerge when fraudulent behavior is present. However, it is extremely important for creditors to recover what they are owed and for fraudulent debtors to be held responsible for their actions.

When it comes to debt collection, every case is different, and this is especially true with regard to fraud. Creditors should not hesitate to pursue legal action against a borrower who has intentionally misled borrowers and evaded debt collection through fraudulent means. Before moving forward with legal action, it is critical to be prepared and gather as much relevant information as possible. Even seemingly small details could impact the case, and there are many different issues that will need to be reviewed.

The popular opinion that many in West Palm Beach may assign to bankruptcy is that it is simply a way for individuals or businesses to avoid having to their debts. While many of those who seek bankruptcy protection are legitimately in a position where they cannot afford to meet their liabilities, the concern of creditors that debtors might purposefully be avoiding paying them may be legitimate. Knowing this, the federal government has structured the bankruptcy code in such a way as to prevent the privileges of bankruptcy from being abused. This includes allowing creditors to force debtors into involuntary bankruptcy. 

By initiating an involuntary bankruptcy against an individual, creditors are essentially saying that they believe a debtor is capable of paying their bills, yet they are avoiding doing so. Indeed, as the Involuntary Petition Against an Individual form (as shared by the Federal Judiciary) shows, the allegations that a creditor must cite include a debtor generally not paying debts as they become due (the other is that a debtor has transferred property subject to a lien to a custodian to try and protect it from creditors' actions). 

Your clients are the lifeblood of your Florida small business, but when one of these fails to pay its debts, that could cause your business financial troubles. We at CreditorCollections, A Law Firm, often counsel companies on collecting debts from their clients.

Documentation is key to the process of collecting a debt, according to Small Business Trends. This involves more than simply producing a contract, although that certainly is important. It is a good idea to create a trail of communication. Every time you contact the client, make copies of the letters and send them certified mail, and save every email. Not only that, you should document the time and date of every phone conversation and in-person visit, and take notes of what was said.

When a consumer signs a car loan, he or she must sign a contract that gives the creditor the right to take action in the event the signee falls behind on his or her payments. The fine print often spells out these rights, but consumers rarely take the time to read all the way through the contract. It is often shocking for people to learn that a creditor can repossess one's personal vehicle after even just one missed payment.

In the event a Florida creditor wants to move forward with the vehicle repossession process, it must follow a specific process. While creditors do have repossession rights, there are limits to what they can do. It may be helpful for you to review both consumer rights and creditor rights as you move forward with the most appropriate course of action on behalf of your company.