Prohibited Practices

• The Florida Consumer Collection Practices Act, along with the federal Fair Debt Collection Practices Act, govern the actions of debt collectors. Under these laws, bill collectors cannot use abusive or threatening language when making collection calls. They also cannot call outside of the hours of 8 a.m. to 9 p.m. Eastern Standard Time. Debt collectors cannot pretend to be law enforcement officers or attorneys and may not threaten criminal prosecution for debts owed.
  
  

Statute of Limitations

• Creditors cannot sue Florida residents indefinitely for debts owed, according to Florida state law. The statute of limitations for credit-related lawsuits is five years from the date the incurring the debt. If a creditor sues a Florida resident outside of this statute of limitations, the lawsuit is invalid. It is the debtor's responsibility to show up to court and inform the judge of the statute of limitations violation.
  
  

Credit Reporting

• While creditors can try to collect on debts indefinitely through telephone calls and letters, the federal Fair Credit Reporting Act limits how long they can damage a Florida resident's credit rating. Most debts can only legally harm a consumer's credit rating for seven years from the date of the original missed payment. Some financial problems such as tax liens and Chapter 7 bankruptcies can reflect negatively on Florida residents' credit ratings for 10 years from the date of the incident.
  
  

Bankruptcy

• Some Florida residents may choose to file bankruptcy to dissolve many of their debts. To qualify for debt liquidation under Chapter 7, the debtor must earn less than Florida's annual median income level. At the time of publication, the annual median income level for a single Florida resident is $40,029, while the figure for a family of four is $65,135, according to the U.S. Trustee Program. People earning more money usually must file for a partial debt repayment plan under Chapter 13. Florida residents of at least two years who file bankruptcy can keep all of the equity in their primary resident as well as a motor vehicle worth up to $1,000.