Wisconsin Debt Collection Laws: Time Limits, Garnishment and Your Rights
Wisconsin 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 Wisconsin
- Time limit to sue on a written contract
- 6 years for an action on any contract, obligation or liability, express or implied. Wis. Stat. 893.43(1)
- Wage garnishment limit
- 80% of disposable earnings is exempt, so at most 20% can be garnished. Earnings are completely exempt if household income is below the federal poverty line or the debtor receives (or within 6 months received) need-based public assistance, and garnishment is limited so it does not push… Wis. Stat. 812.34(2)
- Money protected in a bank account
- Up to $5,000 in total in depository accounts for the debtor's personal (not business) use. Wis. Stat. 815.18(3)(k)
- Answering a debt lawsuit
- In circuit court, serve an answer within 20 days after the complaint is served on you. In small claims, you answer on the return date stated in the summons (orally unless the court requires a written answer); Wis. Stat. 802.06(1)(a); 799.20
Last verified: 2026-10-26
Time limits
| Time limit to sue on a written contract | 6 years for an action on any contract, obligation or liability, express or implied. Text from the 2023-24 Wis. Stats. as updated and certified Oct. 1, 2026. Source: Wis. Stat. 893.43(1) |
|---|---|
| Time limit for credit cards and open accounts | 6 years, the same as written contracts (contracts express or implied). Source: Wis. Stat. 893.43(1) |
| Can a payment restart the clock? | An acknowledgment or new promise takes a debt out of the limitations period only if it is in a writing signed by the debtor. The statute keeps the effect of a payment of principal or interest, but a creditor's own note of a payment on a document is not enough proof of it. Source: Wis. Stat. 893.45, 893.48 |
| How long a judgment lasts | A docketed judgment is a lien on the debtor's real estate in the county (except the exempt homestead) for 10 years. An action on a judgment must be brought within 20 years after it is entered. 20-year period: https://docs.legis.wisconsin.gov/document/statutes/893.pdf Source: Wis. Stat. 806.15(1); 893.40 |
If you are sued
| Answering a debt lawsuit | In circuit court, serve an answer within 20 days after the complaint is served on you. In small claims, you answer on the return date stated in the summons (orally unless the court requires a written answer); if you do not appear you risk a default judgment. Small claims: https://docs.legis.wisconsin.gov/statutes/statutes/799 Source: Wis. Stat. 802.06(1)(a); 799.20 |
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Garnishment and what creditors can't take
| Wage garnishment limit | 80% of disposable earnings is exempt, so at most 20% can be garnished. Earnings are completely exempt if household income is below the federal poverty line or the debtor receives (or within 6 months received) need-based public assistance, and garnishment is limited so it does not push household income below the poverty line. Source: Wis. Stat. 812.34(2) |
|---|---|
| Money protected in a bank account | Up to $5,000 in total in depository accounts for the debtor's personal (not business) use. Source: Wis. Stat. 815.18(3)(k) |
| Homestead exemption | $75,000 in a homestead occupied by the owner; each spouse may claim up to $75,000 in a jointly owned homestead. Sale proceeds stay exempt up to $75,000 for 2 years if held to buy another home. Source: Wis. Stat. 815.20(1) |
| Vehicle exemption | Motor vehicles up to $4,000 in total value, plus any unused part of the $12,000 consumer goods exemption. Source: Wis. Stat. 815.18(3)(g), (d) |
| Claiming an exemption | For a wage garnishment, the debtor claims the poverty-line or public-assistance exemption (or another defense) by completing the debtor's answer form and delivering or mailing it to the employer; this can be done at any time during the garnishment. The employer sends a copy to the creditor, who may ask the court for a hearing. The procedure for claiming bank-account (non-earnings) exemptions was not read. Source: Wis. Stat. 812.37, 812.38 |
Debt collectors and interest
| State debt collection law | Yes. The Wisconsin Consumer Act's debt collection chapter applies to any 'debt collector,' meaning anyone engaging directly or indirectly in collecting consumer claims, including original creditors (merchants) collecting their own debts. It lists prohibited practices such as threats of violence or criminal prosecution and improper disclosures. Source: Wis. Stat. 427.103, 427.104 |
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| Debt collector licensing | Yes. A collection agency must be licensed to operate in Wisconsin; a nonresident that contacts Wisconsin residents only by interstate phone or mail is not required to be licensed. DFI collection agency page: https://dfi.wi.gov/Pages/FinancialServices/LicensedFinancial/CollectionAgency.aspx Source: Wis. Stat. 218.04(2) |
| Interest rate limits | Judgment interest is 1 percentage point plus the prime rate in effect on January 1 (for judgments entered January–June) or July 1 (for judgments entered July–December) of the year the judgment is entered. Source: Wis. Stat. 815.05(8) |
Where to get help in Wisconsin
- Wisconsin Department of Financial Institutions (licenses collection agencies; administers the Wisconsin Consumer Act)
- File a complaint or claim
Debt & Collections FAQ
What is the statute of limitations on debt in Wisconsin?
6 years for an action on any contract, obligation or liability, express or implied.
How long can a creditor sue on a credit card debt in Wisconsin?
6 years, the same as written contracts (contracts express or implied).
Does making a payment restart the statute of limitations in Wisconsin?
An acknowledgment or new promise takes a debt out of the limitations period only if it is in a writing signed by the debtor. The statute keeps the effect of a payment of principal or interest, but a creditor's own note of a payment on a document is not enough proof of it.
How long does a court judgment last in Wisconsin?
A docketed judgment is a lien on the debtor's real estate in the county (except the exempt homestead) for 10 years. An action on a judgment must be brought within 20 years after it is entered.
How much of my wages can be garnished in Wisconsin?
80% of disposable earnings is exempt, so at most 20% can be garnished. Earnings are completely exempt if household income is below the federal poverty line or the debtor receives (or within 6 months received) need-based public assistance, and garnishment is limited so it does not push household income below the poverty line.
How much money in a bank account is protected from creditors in Wisconsin?
Up to $5,000 in total in depository accounts for the debtor's personal (not business) use.
What is the homestead exemption in Wisconsin?
$75,000 in a homestead occupied by the owner; each spouse may claim up to $75,000 in a jointly owned homestead. Sale proceeds stay exempt up to $75,000 for 2 years if held to buy another home.
Can a creditor take my car in Wisconsin?
Motor vehicles up to $4,000 in total value, plus any unused part of the $12,000 consumer goods exemption.
What debt collection practices are illegal in Wisconsin?
Yes. The Wisconsin Consumer Act's debt collection chapter applies to any 'debt collector,' meaning anyone engaging directly or indirectly in collecting consumer claims, including original creditors (merchants) collecting their own debts. It lists prohibited practices such as threats of violence or criminal prosecution and improper disclosures.
Do debt collectors need a license in Wisconsin?
Yes. A collection agency must be licensed to operate in Wisconsin; a nonresident that contacts Wisconsin residents only by interstate phone or mail is not required to be licensed.
What is the maximum legal interest rate in Wisconsin?
Judgment interest is 1 percentage point plus the prime rate in effect on January 1 (for judgments entered January–June) or July 1 (for judgments entered July–December) of the year the judgment is entered.
How do I respond to a debt collection lawsuit in Wisconsin?
In circuit court, serve an answer within 20 days after the complaint is served on you. In small claims, you answer on the return date stated in the summons (orally unless the court requires a written answer); if you do not appear you risk a default judgment.
How do I stop a garnishment or claim an exemption in Wisconsin?
For a wage garnishment, the debtor claims the poverty-line or public-assistance exemption (or another defense) by completing the debtor's answer form and delivering or mailing it to the employer; this can be done at any time during the garnishment. The employer sends a copy to the creditor, who may ask the court for a hearing.
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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.