When a borrower is sued over an unpaid loan in Florida, the experience can be overwhelming and financially stressful. Whether the lawsuit stems from a personal loan, business financing, or a promissory note, understanding your legal rights and options is critical to mounting an effective defense. Here’s what you need to know about defending a loan lawsuit in Florida.
1. Understand the Nature of the Lawsuit
Loan lawsuits are typically brought by the lender or a debt buyer who has purchased the debt. These suits often allege:
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Breach of contract
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Failure to repay under a promissory note
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Unjust enrichment
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Account stated or open account
The complaint will usually include a copy of the loan agreement and an allegation that the borrower failed to repay according to the terms.
2. Responding to the Complaint
Florida law requires defendants to respond to a lawsuit within 20 calendar days of being served. Failing to respond can result in a default judgment, which gives the creditor the legal right to collect without further litigation.
Key actions include:
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Filing an Answer with the court, denying or admitting the allegations.
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Raising affirmative defenses, which could include statute of limitations, lack of standing, or fraud.
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Demanding strict proof of the debt and the amount allegedly owed.
3. Common Defenses to Loan Lawsuits
Several legal defenses may apply in Florida loan cases, including:
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Statute of Limitations: In Florida, the statute of limitations for written loan agreements is typically five years. If the creditor files suit after that period, the case may be dismissed.
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Improper Service: If the borrower was not properly served with the lawsuit, the court may not have jurisdiction.
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Lack of Standing: If the plaintiff is a debt buyer, they must prove they legally acquired the right to sue.
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Payment or Settlement: Proof that the loan was paid in full or settled can defeat the claim.
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Usury Violations: Florida caps interest rates, and lenders charging excessive interest may forfeit the right to enforce the loan.
4. Discovery and Evidence
Once the case moves forward, both sides can engage in discovery, which includes:
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Interrogatories
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Requests for Production
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Depositions
This process can reveal weaknesses in the creditor’s case, such as a lack of documentation or improper accounting.
5. Negotiation and Settlement
Many loan lawsuits settle out of court. A borrower may negotiate:
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A lump-sum settlement for less than the full balance
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A payment plan to satisfy the debt over time
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A dismissal with prejudice in exchange for a payment
Settlement can avoid the costs and risks of trial and may prevent wage garnishment or bank levies.
6. Potential Consequences of a Judgment
If the creditor wins, they may obtain a money judgment that allows them to:
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Garnish wages
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Levy bank accounts
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Place liens on property
Judgments in Florida are valid for 20 years and accrue interest. However, certain income and assets may be exempt under Florida law.
7. The Role of a Florida Debt Defense Attorney
An experienced debt defense attorney can:
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Analyze the validity of the lawsuit
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Identify all possible defenses
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File motions to dismiss or for summary judgment
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Represent the borrower in court or negotiations
Borrowers should not assume they have no defense—even if they owe the debt. Many lawsuits are flawed or unsupported by admissible evidence.
Conclusion
If you’re being sued over a loan in Florida, don’t ignore the lawsuit or assume the outcome is inevitable. With the right legal strategy, you may be able to reduce the amount owed, settle favorably, or even have the case dismissed. Contact a qualified Florida debt defense lawyer to protect your rights and explore your options.
Have you or someone you know been sued? Contact Lawyer J.P. Gonzalez-Sirgo by dialing his direct number at (786) 272-5841, calling the main office at (305) 461-1095, or Toll Free at 1 (866) 71-CLAIM or email Miami Attorney Gonzalez-Sirgo directly at [email protected] or by text at (305) 929-8935.
