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Florida Business Debt Relief Lawyers: Navigating Complex Laws to Eliminate Overwhelming Debt

Debt can become an overwhelming burden for Florida business owners. Unpaid invoices, legal judgments, tax liens, unpaid payroll taxes, and business loans can all contribute to mounting business debt. While debt is often a normal part of doing business, when it becomes unmanageable it can threaten the survival of your company.Fortunately, Florida has laws and programs in place to help business owners find debt relief. Working with an experienced Florida business debt relief lawyer can help you understand your options and develop an effective debt elimination strategy. This article provides an overview of Florida’s business debt relief laws and programs, common debt problems facing Florida businesses, and how a knowledgeable lawyer can guide you through the complex process of eliminating business debt.

Florida’s Business Bankruptcy Laws

For many businesses facing extreme debt, filing for bankruptcy may be the most effective path to eliminating debt and getting a fresh start. Florida has adopted the federal bankruptcy code, meaning business owners can file under Chapter 7, Chapter 11, or Chapter 13 bankruptcy. Each chapter has different debt elimination strategies:

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  • Chapter 7 bankruptcy – This fully liquidates the business to pay off creditors. All assets are sold and the business is closed. Remaining unpaid debt is eliminated.
  • Chapter 11 bankruptcy – Also called reorganization bankruptcy. The business remains open while developing a court-approved repayment plan, allowing owners to restructure debts they cannot immediately pay.
  • Chapter 13 bankruptcy – Used by sole proprietors and freelancers. Allows individuals to restructure personal debts through a 3-5 year court-approved repayment plan.

The type of bankruptcy you file depends on your business structure, amount of assets, and whether you want to continue operating. Your lawyer will assess your situation to determine the optimal strategy.While bankruptcy can eliminate substantial business debt, it also comes with downsides. Bankruptcy can hurt your business’ credit and reputation, and requires disclosing sensitive financial information. Many owners only consider bankruptcy as a last resort when other options have failed.

Florida Debt Settlement Laws

If bankruptcy seems too extreme, Florida also allows debt settlement as an alternative method of debt relief. With debt settlement, your lawyer negotiates directly with creditors to reduce what you owe. Creditors agree to settle for less than the full amount if you can pay in a lump sum or through a short repayment plan.Florida Statute § 817.801 governs how for-profit debt settlement companies can operate in the state. Importantly, settlement companies cannot charge upfront fees before settling any debts. This prevents companies from taking fees without providing results.Debt settlement works best for unsecured debts like credit cards, medical bills, and personal loans. Your lawyer can negotiate these down to 50% or less of what you owe. However, debt settlement has risks, like potential damage to your credit score or being sued by creditors. An attorney experienced with Florida’s debt settlement laws can advise if it’s the right approach.

Florida Tax Debt Relief Programs

If unpaid payroll, sales, or income taxes are dragging your business down, you may qualify for Florida tax debt relief. The state offers programs including:

  • Installment payment plans – Pay back taxes over 6-36 months through automatic withdrawals. You avoid penalties and interest continues accruing.
  • Offers in compromise – Pay a lump sum that’s less than you owe. Approval depends on inability to fully pay.
  • Penalty abatement – Penalties for late filing or payment may be waived if you have reasonable cause. Interest still applies.
  • Currently not collectible status – Pause enforced collection if you have financial hardship. Interest and penalties continue to grow.

Consult a tax debt lawyer to identify the optimal program for your situation. They can negotiate with the IRS or Florida Department of Revenue on your behalf.

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Florida Commercial Debt Collection Laws

When creditors fail to get paid, they often hire aggressive collection agencies or sue you in court. Florida provides important protections through the Florida Consumer Collection Practices Act and Fair Debt Collection Practices Act.These laws prohibit harassment, threats, calling at unreasonable hours, disclosing debt information to others, and other unfair practices. Collectors can be fined for violations. A debt collection defense lawyer can put an immediate stop to unlawful collection activities.If you are sued by a creditor, Florida’s wage garnishment law limits how much of your paycheck they can seize. For head of household filers, only the amount exceeding 30 times the federal minimum wage is eligible for garnishment. An attorney can further protect your assets using federal and Florida exemption laws.

Common Florida Business Debt Problems

  • Cash flow gaps – Periods of low revenue make it hard to pay operating expenses and debts. Seek financing or change payment terms.
  • Industry downturns – A weakened economy hurts sales and profits within an entire industry. Cut expenses, diversify revenue streams.
  • Disasters – Hurricanes, floods or other disasters in Florida can lead to property damage and income loss. Use insurance and SBA disaster loans.
  • Overexpansion – Rapid growth funded by debt can be dangerous if expected revenues don’t materialize. Scale back expansion plans.
  • Personal debts – Many small business owners use personal credit or assets to fund their company. Personal bankruptcy may be needed.
  • Predatory lending – Merchants cash advances, payday loans and other high-cost financing hurts more than helps. Refinance with better rates when possible.
  • Lawsuits – Breach of contract, trademark infringement, employee discrimination, and other lawsuits create massive liabilities. Settle cases when feasible.

Why Hire a Florida Business Debt Relief Lawyer?

Eliminating overwhelming business debt is a complex process with high stakes. An experienced Florida business debt attorney brings several invaluable benefits:

  • Expertise – They understand the nuances of Florida debt relief laws and how to optimize them for your situation.
  • Negotiation skills – Lawyers are often more successful negotiating debt reductions and settlements with creditors.
  • Cost savings – They help minimize penalties, fees and interest charges triggered by the debt elimination process.
  • Risk reduction – Lawyers prevent missteps that could worsen your business’ financial or legal standing.
  • Emotional support – The debt relief process is stressful. An attorney provides guidance and reassurance.
  • Efficiency – You can stay focused on operating your business while your lawyer handles the debt elimination process.

If you choose to move forward with legal debt relief, thoroughly research potential attorneys. Look for ones experienced assisting Florida businesses similar to yours. Ask about their specific debt relief strategies and success rates. Meet with several lawyers before deciding who to hire.


Excessive debt doesn’t have to spell the end for your Florida business. While debt relief can be complex, the potential benefits are well worth the effort. Florida provides a variety of laws and programs to help business owners eliminate debt and regain solid financial footing. Partnering with an experienced Florida business debt relief attorney greatly improves your chances of successfully navigating the process. There are always risks and downsides to pursue legal debt relief, but the guidance of a knowledgeable lawyer can help you minimize them. Don’t wait to seek help. The sooner you address unmanageable business debt, the better chance your company has to survive and thrive for years to come.

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