Litigating Collections in Florida
1. Definition
Collections litigation is the process of using Florida’s court system to recover unpaid debts owed to a business. This can include unpaid invoices, delinquent accounts, defaulted loans, or judgments that need enforcement.
Collections litigation allows a creditor (the business owed money) to secure payment through lawsuits, judgments, and enforcement mechanisms such as garnishments or liens.
2. Florida Legal Context
Debt collection in Florida is governed by state law, federal law, and court procedures:
- Florida Law
- Businesses may file lawsuits in county or circuit court depending on the amount in dispute.
- Florida Consumer Collection Practices Act (FCCPA, Fla. Stat. §559.55–559.785) restricts abusive collection tactics.
- Creditors with valid judgments can pursue garnishment of wages, bank account levies, and liens on property.
- Federal Law
- The Fair Debt Collection Practices Act (FDCPA) governs third-party collection agencies, ensuring fair practices.
- Statute of Limitations
- Written contracts: 5 years
- Oral contracts: 4 years
- Promissory notes: 5 years
3. Real-World Application
Examples of litigating collections in Florida:
- A Tampa supplier sues a client for unpaid invoices under a written contract.
- A Miami commercial landlord obtains a judgment against a tenant who defaulted on rent.
- An Orlando medical provider collects through wage garnishment after winning a judgment.
4. Why It Matters for Business Owners
Unpaid debts can cripple cash flow and profitability. Litigation ensures businesses recover what they are owed.
Why it matters:
- Cash flow: Collecting debts strengthens financial stability.
- Deterrence: Legal action discourages future nonpayment.
- Legal remedies: Garnishments and liens provide leverage that demands payment.
- Protects fairness: Businesses that honor agreements shouldn’t be disadvantaged by those who don’t.
Common mistakes Florida businesses make:
- Waiting too long to take legal action, missing the statute of limitations.
- Failing to maintain proper records of contracts, invoices, and communications.
- Attempting “self-help” collections that violate FCCPA or FDCPA rules.
- Not pursuing post-judgment remedies after winning in court.
5. Real-World Florida Examples
- A Sarasota contractor recovered $200,000 in unpaid bills through a judgment and subsequent bank garnishment.
- A Jacksonville business lost the ability to sue when it missed the 5-year statute of limitations.
- A Fort Lauderdale retailer improved cash flow by consistently litigating delinquent accounts rather than writing them off.
6. How Our Law Firm Can Help
At Black Rock Trial Lawyers, our Litigation Department represents Florida businesses in collection matters. We provide:
- Filing lawsuits to recover unpaid invoices and accounts
- Obtaining judgments against nonpaying clients, tenants, or partners
- Enforcing judgments through garnishments, liens, and levies
- Defending businesses accused of unfair collection practices
- Structuring contracts and credit policies to reduce collection risks
We fight to recover your money and protect your bottom line.
7. FAQs (Frequently Asked Questions)
Q: How long do I have to sue for unpaid debts in Florida?
A: Typically 5 years for written contracts, 4 years for oral agreements.
Q: Can I recover attorney’s fees in a collections lawsuit?
A: Only if your contract includes an attorney’s fee provision or a statute allows it.
Q: What if the debtor has no money?
A: We can investigate assets and pursue garnishments, liens, or other remedies.
Q: Is litigation my only option for collections?
A: No. Many disputes settle before trial, but litigation ensures legal enforceability.
Q: Why hire Black Rock Trial Lawyers for collections litigation?
A: Our Litigation Department combines aggressive representation with compliance under FCCPA and FDCPA, ensuring lawful and effective recovery.