Illinois Debt Collection Laws: Time Limits, Garnishment and Your Rights
Illinois debt rules: statute of limitations, wage garnishment limits, protected bank and home exemptions, judgments, collector rules and how to answer a debt lawsuit.
Quick answers for Illinois
- Time limit to sue on a written contract
- 10 years for an action on a written contract, such as a signed loan agreement or promissory note. 735 ILCS 5/13-206
- Wage garnishment limit
- The lesser of 15% of gross weekly wages, or the amount by which weekly disposable earnings exceed 45 times the Illinois (or federal, if higher) minimum hourly wage. This is stricter than the federal limit. 735 ILCS 5/12-803
- Money protected in a bank account
- A debtor may protect up to $4,000 in any personal property, including money in a bank account. For consumer debt judgments entered on or after January 1, 2020, $1,000 of that amount in a checking or savings account is protected automatically, without a court order. 735 ILCS 5/12-1001(b); 735 ILCS 5/12-1001.1
- Answering a debt lawsuit
- In a small claims case (up to $10,000), the defendant must attend court on the date in the summons, in person or remotely; a written answer is not required unless the court orders one after the first court date. Ill. Sup. Ct. R. 286(a)-(b)
Last verified: 2026-10-26
Time limits
| Time limit to sue on a written contract | 10 years for an action on a written contract, such as a signed loan agreement or promissory note. Current text shows Source P.A. 104-842, eff. 8-21-26; the 10-year period remains. Source: 735 ILCS 5/13-206 |
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| Time limit for credit cards and open accounts | 5 years for unwritten contracts, express or implied, and for civil actions not otherwise provided for. Which period applies to a credit card or other account debt depends on whether the creditor can prove a written contract containing the terms. Source: 735 ILCS 5/13-205 |
| Can a payment restart the clock? | For written contracts and other written evidence of debt, if a payment or a new promise to pay is made in writing, a new 10-year period starts from the date of that payment or promise. Restart rules for unwritten contracts (735 ILCS 5/13-206 and case law) were not separately reviewed. Source: 735 ILCS 5/13-206 |
| How long a judgment lasts | Judgments generally can be enforced for 7 years and revived, up to 20 years after entry. Consumer debt judgments follow special rules: those entered from January 1, 2020 through December 31, 2025 can be revived only by a petition filed within 10 years of entry; those entered on or after January 1, 2026 cannot be revived but are enforceable for 15 years. Changed by P.A. 104-120, effective January 1, 2026. § 12-108: https://www.ilga.gov/Documents/legislation/ilcs/documents/073500050K12-108.htm |
If you are sued
| Answering a debt lawsuit | In a small claims case (up to $10,000), the defendant must attend court on the date in the summons, in person or remotely; a written answer is not required unless the court orders one after the first court date. A defendant who does not appear risks a default judgment. Source: Ill. Sup. Ct. R. 286(a)-(b) |
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Garnishment and what creditors can't take
| Wage garnishment limit | The lesser of 15% of gross weekly wages, or the amount by which weekly disposable earnings exceed 45 times the Illinois (or federal, if higher) minimum hourly wage. This is stricter than the federal limit. Source: 735 ILCS 5/12-803 |
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| Money protected in a bank account | A debtor may protect up to $4,000 in any personal property, including money in a bank account. For consumer debt judgments entered on or after January 1, 2020, $1,000 of that amount in a checking or savings account is protected automatically, without a court order. § 12-1001.1: https://www.ilga.gov/Documents/legislation/ilcs/documents/073500050K12-1001.1.htm. Social Security, unemployment and public assistance benefits are also exempt (§ 12-1001(g)). |
| Homestead exemption | $50,000 in value of the debtor's interest in a home (house, condominium, cooperative or mobile home) they live in. If two or more people own the home, the total exemption is $100,000. Raised to $50,000 by P.A. 104-120, effective January 1, 2026 (the prior amount was $15,000). |
| Vehicle exemption | Up to $3,600 in value in one motor vehicle. Current text shows Source P.A. 104-120, eff. 1-1-26. Source: 735 ILCS 5/12-1001(c) |
| Claiming an exemption | A citation to discover assets must come with a notice listing exemptions. The debtor can claim exemptions at the citation hearing, or earlier by notifying the court clerk in writing; the clerk then sets a prompt hearing and provides the forms to send to the creditor. Source: 735 ILCS 5/2-1402 |
| Bankruptcy exemptions | Illinois has opted out of the federal exemptions. Illinois residents must use Illinois exemptions in bankruptcy. Source: 735 ILCS 5/12-1201 |
Debt collectors and interest
| State debt collection law | Yes. The Illinois Collection Agency Act regulates collection agencies, including their collection practices, and requires a license. Other consumer protections apply through the Consumer Fraud and Deceptive Business Practices Act. Source: 205 ILCS 740/4 |
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| Debt collector licensing | Yes. A collection agency may not operate in Illinois, collect or solicit debts for others, or have clients in Illinois without a license. Out-of-state agencies that only contact Illinois debtors by phone, mail or internet may be exempt if licensed in a state that grants Illinois agencies the same privilege. Act renumbered from 225 ILCS 425; current text shows Source P.A. 104-149, eff. 1-1-26. Source: 205 ILCS 740/4 |
| Medical debt protections | Consumer reporting agencies may not include adverse information about medical debt, or about collection actions on medical debt, in credit reports, and may not keep medical debt information in a consumer's file. Medical debt charged to a general credit card is not covered. Effective January 1, 2025 (P.A. 103-648), amended by P.A. 104-417. Source: 815 ILCS 505/2EEEE |
| Interest rate limits | Judgments generally bear 9% interest a year. Consumer debt judgments of $25,000 or less bear 5% a year. Source: 735 ILCS 5/2-1303(a), (b) |
Where to get help in Illinois
- Illinois Attorney General, Consumer Protection Division (collection agency licensing: Illinois Department of Financial and Professional Regulation)
- File a complaint or claim
Debt & Collections FAQ
What is the statute of limitations on debt in Illinois?
10 years for an action on a written contract, such as a signed loan agreement or promissory note.
How long can a creditor sue on a credit card debt in Illinois?
5 years for unwritten contracts, express or implied, and for civil actions not otherwise provided for. Which period applies to a credit card or other account debt depends on whether the creditor can prove a written contract containing the terms.
Does making a payment restart the statute of limitations in Illinois?
For written contracts and other written evidence of debt, if a payment or a new promise to pay is made in writing, a new 10-year period starts from the date of that payment or promise.
How long does a court judgment last in Illinois?
Judgments generally can be enforced for 7 years and revived, up to 20 years after entry. Consumer debt judgments follow special rules: those entered from January 1, 2020 through December 31, 2025 can be revived only by a petition filed within 10 years of entry; those entered on or after January 1, 2026 cannot be revived but are enforceable for 15 years.
How much of my wages can be garnished in Illinois?
The lesser of 15% of gross weekly wages, or the amount by which weekly disposable earnings exceed 45 times the Illinois (or federal, if higher) minimum hourly wage. This is stricter than the federal limit.
How much money in a bank account is protected from creditors in Illinois?
A debtor may protect up to $4,000 in any personal property, including money in a bank account. For consumer debt judgments entered on or after January 1, 2020, $1,000 of that amount in a checking or savings account is protected automatically, without a court order.
What is the homestead exemption in Illinois?
$50,000 in value of the debtor's interest in a home (house, condominium, cooperative or mobile home) they live in. If two or more people own the home, the total exemption is $100,000.
Can a creditor take my car in Illinois?
Up to $3,600 in value in one motor vehicle.
What debt collection practices are illegal in Illinois?
Yes. The Illinois Collection Agency Act regulates collection agencies, including their collection practices, and requires a license. Other consumer protections apply through the Consumer Fraud and Deceptive Business Practices Act.
Do debt collectors need a license in Illinois?
Yes. A collection agency may not operate in Illinois, collect or solicit debts for others, or have clients in Illinois without a license. Out-of-state agencies that only contact Illinois debtors by phone, mail or internet may be exempt if licensed in a state that grants Illinois agencies the same privilege.
What protections apply to medical debt in Illinois?
Consumer reporting agencies may not include adverse information about medical debt, or about collection actions on medical debt, in credit reports, and may not keep medical debt information in a consumer's file. Medical debt charged to a general credit card is not covered.
What is the maximum legal interest rate in Illinois?
Judgments generally bear 9% interest a year. Consumer debt judgments of $25,000 or less bear 5% a year.
How do I respond to a debt collection lawsuit in Illinois?
In a small claims case (up to $10,000), the defendant must attend court on the date in the summons, in person or remotely; a written answer is not required unless the court orders one after the first court date. A defendant who does not appear risks a default judgment.
How do I stop a garnishment or claim an exemption in Illinois?
A citation to discover assets must come with a notice listing exemptions. The debtor can claim exemptions at the citation hearing, or earlier by notifying the court clerk in writing; the clerk then sets a prompt hearing and provides the forms to send to the creditor.
Which bankruptcy exemptions can I use in Illinois?
Illinois has opted out of the federal exemptions. Illinois residents must use Illinois exemptions in bankruptcy.
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General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.