For Florida residents dealing with Financial Management Systems on student loan debt
What to do when a creditor gets a garnishment order, how to challenge it, and state-by-state exemptions that may protect your wages. This guide applies the steps specifically to Florida's laws and Financial Management Systems's documented collection practices for student loan debt accounts. In Florida, the statute of limitations on student loan debt is 5 years and wage garnishment is limited to Head of household exempt.
5 years
Florida Statute of Limitations
$37,338
Average Student Loan Debt
Head of household exempt
Garnishment Limit
Financial Management Systems has a documented record of FDCPA violations. If any of these occur during your Florida collection dispute, document them and file immediately.
Steps customized for Florida law, student loan debt rules, and Financial Management Systems's collection patterns.
Creditors must first obtain a court judgment, then apply for a garnishment order from the court, then serve your employer. Your employer is legally required to withhold wages and send them to the creditor. This is a multi-step legal process — if there's a judgment you didn't know about, you were likely served and ignored it.
Federal law limits garnishment to 25% of disposable earnings or the amount exceeding 30x federal minimum wage, whichever is less. But many states have stronger protections: NC, PA, TX have virtually no garnishment for consumer debts. FL protects head-of-household wages entirely.
If the garnishment would cause you financial hardship, or if you qualify for an exemption (Social Security income, disability, certain retirement accounts), file a Claim of Exemption with the court that issued the order. Do this within the deadline (usually 10-30 days).
If you were never properly served with the lawsuit, you may be able to set aside the default judgment through a 'motion to vacate.' This undoes the judgment and gives you a chance to actually defend the case.
Offer the creditor a lump-sum settlement to release the garnishment. With a judgment already in place, creditors may accept 50-60% as a lump sum rather than waiting for months of garnishment. Get the release in writing.
These strategies apply to student loan debt specifically. Federal student loans have specific protections. Private student loans are governed by state contract law. Income-driven repayment and forgiveness programs may apply.
Florida Consumer Collection Practices Act governs debt collection in Florida in addition to the federal FDCPA. To file a complaint: AG Consumer Protection.
Key Florida Protections:
In Florida, wage garnishment is capped at Head of household exempt. The following income is protected: Social Security, Wages (if head of household), Workers' comp, Disability, Retirement. Financial Management Systems must first obtain a court judgment through proper legal process before any garnishment order can be issued.
The SOL for student loan debt in Florida is 5 years. Once expired, Financial Management Systems cannot win a court judgment even if the debt is real. You must raise the SOL as an affirmative defense in your Answer if sued — never ignore a lawsuit.
Florida Consumer Collection Practices Act applies in Florida alongside the federal FDCPA. Complaints can be filed with AG Consumer Protection. Head of household wages FULLY exempt from garnishment
Send a certified validation letter within 30 days of first contact. Demand the original creditor name and full chain of assignment. Financial Management Systems must stop all collection activity until they validate. If they fail to validate, file complaints with the CFPB and AG Consumer Protection.
Generate legally precise dispute letters, cease-and-desist demands, and validation requests built for Florida's specific laws and Financial Management Systems's documented tactics. Starting at $9.99/month — cancel anytime.