DEBTOR'S RIGHTS

							     FLORIDA DEBTOR’S RIGHTS
Debtor’s rights are rights guaranteed by law for persons who borrow or owe money.
These rights protect debtor’s from being treated unfairly by creditors.

Everyone is a debtor. If you have a car loan, telephone service, a mortgage on your
home, credit cards, etc., you are a debtor.

If you get behind in your payments you may be sued or contacted by a debt collector or
collection agency. If you are sued and the creditor wins the case, a judgment will be
entered against you by a judge at the end of the lawsuit. This information can be reported
to a credit bureau. The credit bureau can report this information for seven years in your
credit history.

                              CREDIT REPORTS
You may obtain free credit reports to see what information has been reported against you
by contacting the following websites:
               Yahoo.com
               Free-credit-report.org – online consumer guide
               Annualcreditreport.com – one free yearly report from
                       Equifax, Experian and Transunion
You may search the internet to locate other websites for free credit reports.

If you do not think you owe a debt shown on your credit report, or if some of the
information is wrong, you need to contact the credit bureau, in writing, describing the
debt or portion of debt that you believe to be wrong. Some examples of disputes of debts
are: 1. You do not owe the debt at all or the amount shown; 2. The debt has been paid;
3. You are a victim of identity theft; or 4. The debt is barred due to statutory time
limitations.

If you do not hear back from the credit bureau within 30 days, you should write or call
them. If you are not satisfied with the credit bureau’s reply, you may contact the creditor
directly to correct the information shown in the credit report.

You can always try to work out your debt with the creditor. If you are able to make a
payment on your debt, the creditor may be more willing to work something out.
However, if the debt is large and you cannot guarantee to make regular payments, the
creditor may not work with you. Also remember that a creditor may write off a debt at
any time.




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                                 DENIED CREDIT
There is no guarantee that you will be approved when applying for credit. Some reasons
for being denied are: not meeting minimum income requirement; you already have too
large of a debt balance; not living at your residence or working at your job long enough;
or a bad or incorrect credit report. If you are denied credit, the creditor must advise why.
The creditor must give you the opportunity to ask for an explanation so long as you ask
within 60 days of the denial.

                                 MEDICAL BILLS
Medical bills may affect your credit. Even if you have health insurance there may be a
few months between the submission of the bill to the insurance company and their
payment of the bill, during which time the creditor may report the unpaid debt to the
credit bureau. This is another reason to check your credit report.

If you have unpaid medical bills on your credit report, you may either pay the bills, notify
the credit bureau of a pending insurance payment, or write a letter to the credit bureau
explaining the delay in payment of the bill.

How unpaid medical bills affects your credit varies with each creditor. Some creditors
may consider you a high credit risk while others may not put as much importance on the
unpaid medical bills.

                          COSIGNING ON A LOAN
Before cosigning on a loan for anyone, including your son or daughter, you may want to
consider the effect on your credit if the primary borrower does not pay the debt. If not
paid, the creditor will look to you to pay the debt, including late fees and collection costs.
The creditor may use the same collection methods against you as they would the primary
borrower. This could end up ruining your credit. Creditors must give you notice at the
time of cosigning the loan explaining all of your obligations as a cosigner. Be sure you
read it thoroughly. In addition to putting your credit at risk, it may reduce your ability to
obtain loans as it raises your outstanding debt balance.

                                 STUDENT LOAN
If you have a student loan and find you cannot make the payments, you might consider
having the payments postponed through forbearance or deferment. Forbearance is a
postponement by which the bank or agency that guaranteed the loan allows you to stop
making payments for a certain period of time. Forbearance applies only to the principal.
The interest will continue to accrue. Deferment is the postponement of payments for a
certain length of time, such as a period of unemployment or for the purpose of going back
to school. You cannot receive deferment if you have defaulted on the loan. You may



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also check into loan cancellation with the bank or agency that guaranteed your student
loan.

                 DEBTOR’S RIGHTS IN A LAWSUIT
If you are sued for money in Florida, the suit will either be filed in Small Claims Court,
County Court or Circuit Court. Cases in Small Claims Court are for amounts up to
$5,000.00. County Court is for cases with amounts from $5,001.00 to $15,000.00.
Circuit Court cases are for amounts in excess of $15,000.00. The person bringing the
lawsuit is called the “Plaintiff” and the person being sued is called the “Defendant”.

After a suit is filed, you will be served with a Summons and Complaint. Service may be
either by Deputy Sheriff or by Certified Mail. Read the Complaint thoroughly so you
know what you are being sued for.

It is important that you respond to the Complaint within 20 days of your being served by
either immediately contacting an attorney who will answer the complaint, or answering
the lawsuit yourself. If the Complaint is not answered within the 20 days, the Plaintiff
can have the Clerk of Court enter a Default against you and they can proceed to get a
Judgment against you.

If you do not hire an attorney to represent you, you may wish to obtain the Packet
entitled: Explaining the Court Process and General Information for Self-
Represented Litigants.

If you answer the Complaint, the following is a guide as to what the Answer should
include. This is not legal advice, and you should not rely completely on it.

1. At the top of the Answer, complete the Caption by typing or writing in ink the name
and title of the court, the Plaintiff’s name, the Case Number, and your name as the
Defendant, as well as any other Defendants.

2. Type or write in ink the word ANSWER, which should be centered right below the
caption.

3. Beginning with the first paragraph of the Plaintiff’s Complaint, start saying what you
agree with or disagree with. In other words, if you agree with a paragraph say: “I admit
paragraph 1.” Or, if you disagree with a paragraph say: “I deny paragraph 2”., and then
give the reason why you disagree with that paragraph. Be sure you answer all of the
paragraphs in the Complaint.

4. If you believe the Plaintiff owes you money, you may add a Counterclaim to your
Answer. If you are going to do this, be sure and type or write in ink the heading
COUNTERCLAIM, which should be centered below the answer portion. Be sure you
state in numbered paragraphs what they owe and why.



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5. At the bottom of the Answer, and Counterclaim if applicable, you must write in the
date you sign the Answer, and Counterclaim if applicable, sign your name, and write or
type in your address and telephone number. In addition, write or type a statement saying
that you have delivered a copy to the Plaintiff or Plaintiff’s attorney, if any.

You must file the original Answer with the Clerk of Court in the county where the
lawsuit was filed. Be sure you deliver a copy of your Answer to Plaintiff or Plaintiff’s
attorney, if any, immediately after filing the original with the Clerk and keep a copy for
your records.

If you do not answer the Complaint within the 20 day period, and a DEFAULT has not
been entered against you by the Clerk of Court, you should immediately file and serve an
Answer as explained above.

After filing your Answer and if you do not settle with the Plaintiff, a trial will be set by
the Court. If the case is filed in Circuit Court, there may be pre-trial procedures or
motions that need to be done or filed. The Court will inform you upon your request for
information.

If you lose the lawsuit, a judgment will be entered against you. The Plaintiff who has
won a judgment is called a “judgment creditor” and the Defendant who has lost and had a
judgment entered against him/her is called a “judgment debtor”. The judgment creditor
has ten years to collect on the judgment, and may renew the judgment for one more ten-
year period.

                         JUDGMENT COLLECTION
After obtaining a judgment, and in order to find out whether you work, where you keep
your money, or what property you own, the judgment creditor may require you to
complete a “Fact Information Sheet”. If you do not supply this information, the judgment
creditor can require you to come to court to supply the information. If you do not appear
at the court hearing or refuse to supply the information, you may be subject to contempt
of court proceedings.

The judgment creditor can collect on a judgment by levy, garnishment of bank accounts,
or garnishment of wages.

If a judgment creditor obtains a writ of garnishment or continuing writ of garnishment,
he/she must send you a copy of the Writ, a copy of the answer filed by your employer or
bank, and a notice telling you about your right to request that the court stop the
garnishment or execution.

A judgment creditor may not garnish your wages or your bank accounts without a court
order.




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                             EXEMPT PROPERTY
There are certain kinds of property that are exempt and cannot be taken by a judgment
creditor. Some of this property is not exempt when the judgment is for child support or
taxes. Some exempt property is as follows:
        1. Welfare, Supplemental Security Income (SSI), Social Security, Disability,
        Unemployment Compensation, and some pensions and retirement benefits;
        2. Net wages of $154.50 per week, or 75% of your net wages, whichever is more;
        and in the case of the head of a household, wages up to $500.00 per week;
        3. Your vehicle up to $1,000.00 of its value (being the value of the vehicle less
        all debts for which the vehicle is collateral);
        4. Personal property up to $1,000.00 value (this can include money held in a bank
        account);
        5. Equity in a home up to ½ acre of land if located in an incorporated area (city)
        and up to 160 acres in an unincorporated area (county), which includes a mobile
        home or modular home so long as you own the land it is located on); and
        6. Professionally prescribed health aids used by you or your dependents.
Exceptions are creditors who have loaned you money on your personal property or
vehicle, workers who have worked on your home, or a lender who has loaned you money
on your home.

You may claim your exemption(s) or exempt property by filing a Claim of Exemption
with the court describing the exemption and requesting a hearing before a judge. A
Claim of Exemption is attached to the back of this Packet. You must send a copy of the
Claim of Exemption to the judgment creditor or their attorney, if any. The judgment
creditor must then file an affidavit or reply with the court within two days if they wish to
challenge your exemption. The court will set a hearing on the matter and forward notice
to you of such hearing.

If your wages or bank accounts are going to be garnished, you will not receive any notice
until after the wages have already been withheld or a hold has been placed on your bank
accounts. Therefore, it is important that you complete and file the Claim of Exemption as
soon as possible so the court can set a hearing. However, do not file the Claim of
Exemption before your wages are withheld or before a hold is placed on your bank
accounts as the court cannot set a hearing prior to garnishment.

Your spouse or any other person, that is not a defendant along with you and who has an
ownership interest in any bank accounts or property, may file an affidavit showing their
ownership of the accounts or property and request the court to return the accounts or
property to them.

Property or accounts may lose their exempt status if they are fraudulently transferred to
someone else.




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                                         LEVY
Lands and personal property shall be subject to levy and sale under an Execution issued
by the Clerk of Court after judgment is entered by the Court, unless they are determined
to be exempt property as described above.

If a judgment has been obtained against you, and in order to protect your homestead from
forced sale, or levy, you may prepare a statement, in writing, containing a description of
the property, including the description of any mobile home or modular home, designating
it as your homestead. This statement must be signed by you, dated, and recorded in the
public records of the county where the homestead property is located.

If you have a contract to sell your homestead property or if you have a commitment from
a lender for a mortgage on your homestead property, you may file the “notice of
homestead” stated in paragraph 2. of F. S. 222.01. It would then be up to the judgment
lienor or judgment creditor to bring an action for a declaratory judgment to have the
constitutional homestead status determined by the court. The notice of homestead does
not apply to judgments or liens for real property taxes, labor, services or materials
furnished to repair or improve real property or any liens or judgments for other
obligations contracted for house, field, or other labor performed on the real property.

If any person other than you, who is not a defendant along with you, claims any property
levied on, he or she may obtain possession of the property by filing an affidavit with the
officer serving the Execution that the property belongs to him or her and by supplying
said officer with a bond with surety in favor of plaintiff in double the value of the goods
claimed.

When levy is made upon lands that have not yet been set aside as homestead, the
defendant may notify the officer making the levy by written notice under oath that the
lands are his or her homestead and giving a description of said land. This may be done
any time before the day of the sale.

When levy is made against personal property, the defendant may make an inventory of
the personal property, designating which personal property is exempt. This must be done
within 15 days after the date of the levy. Check F. S. 222.061 in your county law library
or on the internet at www.flsenate.gov/Statutes/index for details on this procedure.

The exception to levying on property without a court order is personal property, such as a
car, that has been put up as collateral or security for a loan, which may be taken through
repossession. A creditor may repossess your property without going to court first.
However, a creditor may not force his way into your home, your garage, or gated
property that is locked to take possession of the property without a court order.




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                         COLLECTION AGENCIES
A collection agency or debt collector is any agency or person other than a person directly
employed by the creditor or judgment creditor who regularly collects debts owed to
others. Attorneys who collect debts for creditors are also “debt collectors”.

Debt collectors must follow certain guidelines and debtors should be treated fairly.
Collection agencies and debt collectors are regulated by both state and federal laws.
However, the laws do not eliminate debts that are owed.

A collection agency or debt collector may contact you by mail, telephone or personal
visit so long as it is at reasonable times and at a reasonable place. They may not contact
you at work if they know your employer disapproves. In addition, they may not contact
your employer unless they have written consent from you.

If they contact you in writing regarding the debt they are attempting to collect, they must
provide you with their name and address, the amount of the debt, the name of the creditor
they are collecting for, a statement that unless you dispute the debt within 30 days after
you receive the notice they assume the debt is correct, and a statement that if you notify
the collection agency or debt collector within 30 days of receiving notice that you dispute
the debt, the collection agency or debt collector will verify the debt and mail such
verification to you.

If they contact you by telephone, you may insist that they also contact you in writing.
They may contact you by telephone between the hours of 8:00 a.m. and 9:00 p.m. They
cannot speak to you or your spouse more than 3 times in one week.

If you do not believe you owe the debt, then within 30 days of the first contact by the
collection agency or debt collector, you must advise them in writing, by certified mail so
you have a record, that you disagree with the entire debt or describe the portion that you
disagree with and give the reason why you disagree with it. If you have previously paid
the debt, you need to supply them with a copy of the cancelled check or other proof of
payment. Be sure you include the name of the creditor with whom the debt originated,
the number that was assigned by the collection agency or debt collector, and your name
and address. Keep a copy of your letter or written statement for your records.

As soon as the collection agency or debt collector receives your written statement they
must discontinue attempts to collect the debt until they have proof that you owe the debt.
In addition, they must forward a copy of the proof to you. They may, however, proceed
to sue you for the debt.

Under the Federal Fair Debt Collection Practices Act, you may notify a collection agency
or debt collector, in writing, that you want them to cease further communication with you
and they can no longer communicate with you except as follows:
        1. Advise you that they are stopping their effort to collect the debt; or
        2. Advise you that they intend to take action, such as a lawsuit, against you.


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Your notification in writing should include your name and address; the account number
on the statement you received from them; the date; a statement that you are exercising
your rights under the Federal Fair Debt Collection Practices Act; and, a statement that
you want them to stop calling or writing you, or both. Mail the original to the collection
agency or debt collector, send a copy to the original creditor, and retain a copy for your
records. This will not eliminate the debt or your obligation to pay the debt. Keep in
mind that the collection agency or debt collector may sue you for the debt. All this
statement in writing does is stop the calls and letters from them. If they contact you after
receiving your statement, other than advise you they are stopping to collect the debt or
that they intend to take action against you, then they have violated the Federal Fair Debt
Collection Practices Act. You may bring an action against them for money damages and
attorney fees.

In addition to the Federal Fair Debt Collection Practices Act, the Florida Consumer
Collection Practices Act prohibits harassment, false or misleading statements and unfair
practices by collection agencies and debt collectors. Some violations of these acts are
listed below:
        1. They threaten to tell your employer or neighbors about the debt;
        2. Threaten violence against you;
        3. Threaten to have you arrested;
        4. Communicate with you or your spouse more than three times a week;
        5. Harass, intimidate, threaten or embarrass you;
        6. Imply that documents sent to you are legal documents or government
                documents;
        7. Imply that you can be deported; or
        8. Solicit a postdated check in order to threaten criminal prosecution.

The Federal Trade Commission is the federal agency that takes complaints and they may
be contacted at: www.ftc.gov or call toll-free 1-877-382-4357. The Florida agency is the
Attorney General’s Office, Tallahassee, Florida. Their phone number is: 850-414-3300.

To help you successfully prove that a violation has occurred, you may want to do the
following: Keep all letters and written communications from the collection agency or
debt collector to you and from you to them in one location, including envelopes; keep a
list of all telephone calls you receive, including the date, time, names of persons with the
collection agency or debt collector, and brief description of conversation; and keep a list
of all telephone calls they have made to anyone else.

In most cases, the management of collection agencies will not tolerate unfair practices.
You may wish to first contact the management to discuss the problem with them.
Generally, they will take steps to prevent further violations.

If the collection agency or debt collector violations cause you physical or emotional
problems, contact an attorney for possible legal action.




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                            MILITARY MEMBERS
The military expects its members to pay their just debts in a proper and timely manner.
Under Department of Defense Directive 1344.9 (DODD 1344.9) a just debt is a financial
obligation in which there is no reasonable dispute as to the facts or the law, or one
reduced to judgment which conforms to the Soldiers’ and Sailors’ Civil Relief Act, if
applicable.

The military services have no legal authority, except in the case of court ordered alimony
or child support, to require military members to pay a private debt or to direct any part of
their pay for its satisfaction. If the debt is a just debt, the military member’s commander
may write a letter of reprimand in their permanent record, or other actions such as denial
of reenlistment. However, the commander must make sure there is no bankruptcy on
file. Enforcement of private debts is a matter for civil authorities.

The debt collector or collection agency may not contact the military member’s
commander unless they have a written and signed consent from the military member, a
court order permitting contact, or a court judgment against the military member.

The Soldiers’ and Sailors’ Civil Relief Act of 1940 (SSCRA) was enacted to recognize
that military members who incur debts prior to active duty may not be able to afford their
loan payments on active duty pay. The SSCRA limits the legal actions creditors may
take when collecting debts that were incurred prior to active duty. In addition, a military
member may have the interest rate reduced to 6% on their debts upon their request. New
debts or loans do not qualify for the reduced interest rate. The military members must
send the following: copy of military orders confirming their active status and a
completed request form for interest rate relief by mail to: Point Loma Credit Union,
Financial Assistance Department, Attn: Soldiers’ and Sailors’ Review, 9420 Farnham
St., San Diego, Ca. 92123, or they may fax it to: 858-495-7140 (Soldiers’ and Sailors’
fax line).

                                  BANKRUPTCY
You may consider bankruptcy. However, filing bankruptcy does not eliminate all debts.
In addition, some of the disadvantages to filing bankruptcy includes the loss of credit for
7 to 10 years and the loss of some possessions. You should consult with an attorney to
learn more about bankruptcy.




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Some of the information for the foregoing pamphlet was obtained from the following
websites:

www.aarp.org
www.armsgroup.com
www.findlaw.com
www.floridabar.org
www.floridalegal.org
www.legalmatch.com
www.plcu.com/about/soldiers.asp
www.povertylaw.org
www-tradoc.army.mil




THIS PACKET PROVIDED FOR YOUR USE BY:

HONORABLE DON T. HALL                      HONORABLE MITZIE W. MCGAVIC
COUNTY JUDGE                               CLERK OF THE COURT
DESOTO COUNTY, FLORIDA                     DESOTO COUNTY, FLORIDA
115 EAST OAK STREET, SUITE 201             115 EAST OAK STREET
ARCADIA, FLORIDA 34266                     ARCADIA, FLORIDA 34266




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          IN THE COUNTY COURT IN AND FOR DESOTO COUNTY, FLORIDA

___________________________
___________________________
___________________________,
(Name and Address)
            Plaintiff,

vs.                                           CASE NO. __________________

___________________________
___________________________
___________________________,
(Name and Address)
            Defendant,

___________________________
___________________________
___________________________,
(Name and Address)
            Garnishee.
__________________________________/

              CLAIM OF EXEMPTION AND REQUEST FOR HEARING

          I claim exemptions from garnishment under the following categories as checked:

____ 1. Head of family wages. (You must check a. or b. below.)
____ a. I provide more than one-half of the support for a child or other dependent and
     have net earnings of $500 or less per week.
____ b. I provide more than one-half of the support for a child or other dependent,
     have net earnings of more than $500 per week, but have not agreed in writing to
     have my wages garnished.
____ 2. Social Security benefits.
____ 3. Supplemental Security Income benefits.
____ 4. Public assistance (welfare).
____ 5. Workers’ Compensation.
____ 6. Unemployment Compensation.
____ 7. Veterans’ benefits.
____ 8. Retirement or profit-sharing benefits or pension money.
____ 9. Life insurance benefits or cash surrender value of a life insurance policy or
     proceeds of annuity contract.
____ 10. Disability income benefits.
____ 11. Prepaid College-Trust Fund or Medical Savings Account.
____ 12. Other exemptions as provided by law. _______________________________
     __________________________________________________________(explain)



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