| Illinois at a glance | |
|---|---|
| Time limit to sue on card debt | Courts usually apply a 5-year limit to credit card debt (the 10-year written-contract limit applies only when the creditor can prove every term in writing). |
| Deadline to answer a debt lawsuit | Usually 30 days after service in circuit court. In small claims you may instead need to appear on the date on your summons. |
| Wage garnishment | Creditors can take the lesser of 15% of gross pay or the amount above 45 times the minimum wage, which protects more than federal law. |
| Where to complain | Illinois Attorney General consumer complaint |
How long creditors have to sue
Courts usually apply a 5-year limit to credit card debt (the 10-year written-contract limit applies only when the creditor can prove every term in writing). Debt buyers can't sue on a debt that's past the limit. (735 ILCS 5/13-205, 13-206; 205 ILCS 740/8.6)
The time limit for suing is separate from credit reporting: most negative items can stay on your credit report for up to 7 years from when you first fell behind, regardless of state.
If you're sued in Illinois
Answer deadline: Usually 30 days after service in circuit court. In small claims you may instead need to appear on the date on your summons. Check your own summons for the exact date, because missing it usually means a default judgment.
Step-by-step help and common defenses are in our lawsuit and garnishment guide.
What's protected if there's a judgment
Your paycheck
Creditors can take the lesser of 15% of gross pay or the amount above 45 times the minimum wage, which protects more than federal law. (735 ILCS 5/12-803)
Your bank account
Starting in 2026, the first $1,000 in a bank account is protected automatically when a creditor tries to take it. You can claim more of the state's $4,000 personal property exemption. (Illinois SB 1738 (2025), effective January 1, 2026)
Everywhere in the US, Social Security, SSI and VA benefits are generally off-limits to private creditors, and banks must automatically protect two months of those benefits when they're direct-deposited.
Debt collectors in Illinois
Collection agencies and debt buyers must be licensed by the Illinois Department of Financial and Professional Regulation (IDFPR) under the Collection Agency Act. Federal rules still apply on top of state law. See your rights and free dispute letters.
Debt settlement and debt relief companies
Debt settlement companies must be licensed by IDFPR. State law caps fees at a $50 enrollment fee plus 15% of the amount you save, collected only after a settlement is reached. Under federal law, debt relief companies that sell by phone can't charge fees until they've settled at least one of your debts. Read how settlement works.
Medical debt
Since January 1, 2025, medical debt incurred in Illinois can't appear on credit reports. More in our medical bills guide.
Where to complain or check a company
Sources
Laws and dollar amounts change, and court rules vary by county. This page is general information, not legal advice. For your situation, contact a legal aid office or a Illinois consumer attorney.