The best business debt settlement companies in Florida work from Florida law, because Florida does not allow confessions of judgment signed before suit, requires commercial financing disclosures for most transactions starting in 2024, and has protections for homestead and spousal joint accounts.
Can an MCA funder use a confession of judgment against you in Florida?
In general, a confession of judgment is not allowed in Florida. Fla. Stat. 55.05 says any power of attorney to confess judgment made before suit, "executed within or without this state, shall be held absolutely null and void."
New York only allows the affidavit to be filed in the county where you resided when you signed or reside at filing, within 3 years of signing. CPLR 3218(b). So unless you lived in New York when you signed, the funder will have to sue you, which gives you more time.
What happens when a New York judgment is brought to Florida?
A New York judgment has to be recorded in Florida. Once it is recorded, the clerk will send you notice by registered mail and no execution can issue until 30 days after mailing. Fla. Stat. 55.505. You then have 30 days from the date the judgment is recorded to file an action contesting its validity or the court's jurisdiction over you. Fla. Stat. 55.509. Filing stays enforcement, though the court may order you to post security.
If the funder tries to garnish your accounts, you have 20 days from receipt of the notice of garnishment to file a claim of exemption if you are an individual. Fla. Stat. 77.041. The funder then has 8 business days (hand delivery) or 14 days (mail) to object, or the writ is dissolved as to that property.
What property is exempt in Florida if I signed a personal guarantee?
Your home, joint accounts with your spouse, head-of-family wages, and retirement accounts. Your business's bank accounts and business assets are not protected.
| Property Type | Exemption | Source |
|---|
| Homestead | No dollar limit; up to 160 contiguous acres outside a municipality or one-half acre within one; only if owned by a natural person | Fla. Const. Art. X, s. 4 |
| Joint Accounts of Spouses | A married couple's joint account is presumed an entireties account unless otherwise specified in writing | Fla. Stat. 655.79 |
| Wages if Head of Family | All disposable earnings of $750 a week or less; traceable exempt wages in a bank account stay exempt for 6 months | Fla. Stat. 222.11 |
| Retirement | IRAs, Roth IRAs, 401k, 403b, 457b, etc. | Fla. Stat. 222.21 |
| Motor Vehicle and Wildcard | $5,000 motor vehicle; $4,000 personal property wildcard only if you don't claim the homestead exemption | Fla. Stat. 222.25 |
If your house is in an LLC, it will not be considered your homestead. If you are not married, your accounts will not be entireties accounts. Know your details!
Will the Florida Commercial Financing Disclosure Law help me?
The Florida Commercial Financing Disclosure Law gives you some additional leverage. The law, Fla. Stat. 559.961 to 559.9615, covers transactions consummated on or after January 1, 2024, including accounts receivable purchase transactions, which is how most MCAs are structured. It applies to a provider that consummates more than 5 transactions with Florida businesses in a calendar year, and not to transactions over $500,000.
The covered funder must disclose, at or before signing, the funds provided, the total to be paid back, the total dollar cost, the amount and frequency of payments, and any prepayment costs or discounts. Only the Florida Attorney General can enforce it, at $500 per incident up to $20,000, or $1,000 per incident up to $50,000 after prior written notice. Despite those penalties, § 559.9615 makes clear that a violation will not affect the enforceability of the deal.
Does Florida's usury law apply to merchant cash advances?
Only if a court finds the advance is really a loan. If it does, Fla. Stat. § 687.071, makes willfully charging over 25% per year a misdemeanor and over 45% a felony, and subsection (7) makes such credit unenforceable in any Florida court. See our guide on the application of usury law to merchant cash advances.
How do I choose a business debt settlement company in Florida?
Be sure they ask the right questions:
- Who signed the personal guarantee, you alone or you and your spouse?
- How are your home and your bank accounts titled (your name alone, you and your spouse, your business's name)?
- When were the advances funded, and did you get the Florida disclosure required for deals on or after January 1, 2024?
- Will they engage Florida counsel to file a § 55.509 action or § 77.041 exemption claim on time?
Delancey Street has settled over $100 million in debt for over 1,000 businesses. It reports an average reduction of about 50% over 5 to 7 months and a network of attorneys licensed in 49 states and the District of Columbia. All statistics are self-reported. CuraDebt, located in Hollywood, FL, refers business clients to independent third-party providers. Our cost guide covers fees.
Frequently Asked Questions
Can a funder enforce a confession of judgment against me in Florida?
Generally no. Fla. Stat. § 55.05 voids any power of attorney to confess judgment given before an action is filed, and N.Y. CPLR § 3218(b) only allows filing in your county of residence at signing or at filing. So the funder will generally have to sue you.
How long do I have after a New York judgment is recorded in Florida?
The clerk mails notice by registered mail, and no execution can issue until 30 days after mailing. You have 30 days from recording to file an action contesting jurisdiction or validity, which automatically stays enforcement, although the court may require security.
Can a merchant cash advance funder take my home in Florida?
Not if the home is titled in your name and qualifies as a homestead. Fla. Const. Art. X, § 4 exempts up to 160 contiguous acres outside a municipality or one-half acre within one, with no dollar limit. A home titled in your LLC is not exempt.
What can I do if the funder didn't provide me with the disclosure required by Florida law?
If the deal was on or after January 1, 2024, was $500,000 or less, and the funder did more than five Florida deals that year, you can complain to the Florida Attorney General. You cannot sue the funder yourself, and the contract stays enforceable.
Can a broker charge me an upfront fee in Florida?
No. Under Fla. Stat. § 559.9614, a commercial financing broker cannot charge an advance fee, make false or misleading representations, or advertise without providing its actual address and phone number.