If you are dealing with high debt in the state of Florida and are wondering what debt relief programs are available in the state, you are not alone. Earlier this year, Forbes listed Florida as the #1 highest-debt state in its top five states with the highest credit card debt article. Many Floridians are actively seeking debt relief options , and looking into options like debt settlement, consolidation and credit counseling, amongst others. On this page, we will review all debt relief programs available in Florida, including debt settlement, credit counseling, DMP’s, debt consolidation, bankruptcy and more.
Florida Debt Relief Programs in 2024
1. Debt Settlement Programs:
Debt settlement companies, like CuraDebt or Oak View Law Group, can negotiate with your creditors (on your behalf and with your authorization) to reduce the total amount owed. In Florida, many companies and credit counseling nonprofits offer debt settlement services, where they work on your behalf to reach a settlement for less than what you owe.
Local Providers: Some national companies operate within Florida as well, and there are also local firms offering personalized services.
2. Debt Management Plans (DMPs):
Many nonprofit (and for-profit) credit counseling agencies in Florida offer DMPs or Debt Management Plans, where they negotiate lower interest rates and more manageable payment plans with creditors. You make a single monthly payment to the agency, which then distributes it to your creditors on your behalf.
Local Providers: Organizations like ClearPoint Credit Counseling Solutions and Consumer Credit Counseling Service of Central Florida and the Florida Gulf Coast provide DMPs.
3. Credit Counseling Services:
Credit counseling agencies (many of them being nonprofits) provide free or low-cost advice on managing your finances, budgeting, and debt repayment strategies. They can also help you create a debt management plan.
Local Providers: Many nonprofit agencies in Florida offer credit counseling, including InCharge Debt Solutions and Money Management International.
4. Bankruptcy:
Filing for bankruptcy can help discharge or drastically lower your debts under Chapter 7 or Chapter 13 bankruptcy laws. In Florida, specific exemptions apply that protect certain assets, like your homestead. In fact, the Florida homestead exemption is one of the most generous in the United States. It protects the equity in your primary residence (homestead) from being seized by creditors in both Chapter 7 and Chapter 13 bankruptcy filings.
Local Providers: Bankruptcy attorneys throughout Florida can guide you through the process. Florida’s bankruptcy courts also have resources to help residents understand their options, so we encourage you to visit your local court.
5. Florida Hardest-Hit Fund:
This unique and exclusive FL program is aimed at homeowners who are struggling to make their mortgage payments due to unemployment or underemployment. It offers mortgage assistance to eligible Florida residents.
Local Providers: You can apply through the Florida Housing Finance Corporation.
6. Tax Debt Relief:
For those with tax debts, the IRS and Florida Department of Revenue offer options such as installment agreements, offers in compromise, or penalty abatement.
Local Providers: Tax relief firms in Florida specialize in negotiating with the IRS and state tax authorities.
7. Student Loan Forgiveness Programs:
Federal programs such as Public Service Loan Forgiveness (PSLF) or Income-Driven Repayment (IDR) plans may be available to Florida residents with student loan debt.
Local Providers: Many national organizations provide assistance with navigating student loan forgiveness, but local nonprofit organizations or state agencies may also be able to offer you some guidance.
8. Foreclosure Prevention Programs:
Programs like Florida’s Hardest-Hit Fund which we covered earlier offer assistance to homeowners facing foreclosure. Additionally, some counties within Florida offer mediation programs to help homeowners avoid foreclosure.
Local Providers: Florida Housing and various county-level programs offer foreclosure prevention assistance.
9. Veterans Debt Relief:
Veterans in Florida may qualify for special debt relief programs, including VA loan modifications, and other support through veteran-specific organizations.
Local Providers: The Florida Department of Veterans’ Affairs and local VA offices can provide information and assistance.
10. Legal Aid Services:
Florida residents with low income may qualify for free legal aid services, including help with debt-related issues like defending against lawsuits from creditors/collectors or understanding bankruptcy options.
Local Providers: Legal Aid of Manasota, Inc. and Legal Services of Greater Miami, Inc. are examples of organizations offering these services. You should be able to find one close to you if these two are not within reach.
11. Nonprofit Debt Consolidation:
Nonprofit organizations in Florida may offer debt consolidation services, helping you combine multiple debts into one manageable payment, often with lower interest rates.
Local Providers: Agencies like Consolidated Credit Counseling Services offer nonprofit debt consolidation services.
