What Are Florida's State Laws on Credit Card Debt?

State law regarding credit card debt in Florida centers around bankruptcy and the statute of limitations for collecting debt. Whether the agreement between the consumer and the creditor is a written contract or an oral one determines the statute of limitations time frame. However, the precise definition of the two contract types appears to be left up to the discretion of the individual courts. The statutes for bankruptcy are much clearer.

Written Contract

The statute of limitations for a written contract credit card debt in Florida is five years, according to the 2009 Florida Statutes Title VIII, Chapter 95, Section 95.11 (2)(b). The five-year period starts when you stop making payments, not when you received the credit card. If you later make a payment, the statute of limitations clock is stopped, according to Section 95.051 (1)(f). The same is true if you move out of state. The statute of limitations clock stops and restarts when you move back to Florida.

Oral Contract

The statute of limitations for an oral contract credit card debt in Florida is four years, according to the 2009 Florida Statutes Title VIII, Chapter 95, Section 95.11 (3)(k). All other factors apply as in the case of a written contract credit card debt. If the state where the charges were made is not Florida, the statute of limitations is not governed by Florida law, and other factors could be used to determine when the statute of limitation begins. This could be the case for either a written contract or an oral contract.

Bankruptcy

Filing for bankruptcy in the State of Florida does not eliminate all of your credit card debt. The first $750 of cash advances on your credit cards within 70 days of filing are not included in your bankruptcy protection. Obtaining bankruptcy protection is not easy. Chapter 7 bankruptcy allows the court to take all of your non-exempt assets, dispose of them and distribute the proceeds to your unsecured creditors. With Chapter 13 bankruptcy, you do have the ability to affirm secured debts. This will allow you to keep the asset by continuing to make the payments. Some credit card purchases, such as those on store cards, are considered secured debts.

Considerations

Under any circumstances, credit card debt and how it is handled can have a long-term effect on your financial bearing. This subject is complex and varies from jurisdiction to jurisdiction. The information provided herein is general in nature and should not be relied upon as legal advice or counsel. Please contact an attorney specializing in bankruptcy if you have specific questions or require legal advice.