Illinois: Credit, Debt & Bankruptcy

Federal laws like the FDCPA and FCRA set a floor in every state. But the details that decide real cases in Illinois come from Illinois statutes and Illinois courts. That includes how long a creditor has to sue, how much of a paycheck is protected, and what a collector has to put in its complaint.

Illinois is unusual in two ways worth knowing early. Its wage deduction cap is tighter than the federal limit. And its rules about what a debt buyer must attach to a lawsuit are unusually specific.

Your official Illinois resources

These are the state-level starting points most Illinois residents dealing with debt need:

• Illinois Attorney General — Consumer Protection — consumer information plus hotlines: Chicago 1-800-386-5438, Springfield 1-800-243-0618, Carbondale 1-800-243-0607, and a Spanish-language line at 1-866-310-8398.
• Illinois Legal Aid Online — the statewide legal aid portal, with plain-language guides, court-ready forms, and a directory of free and low-cost help.
• IDFPR license lookup — the state license search that shows whether a collection agency is licensed in Illinois.
• U.S. Bankruptcy Courts — Illinois has three federal districts: Northern (Chicago and Rockford), Central (Springfield, Peoria, Urbana), and Southern (East St. Louis and Benton).

If you need	Official starting point
To respond to a debt lawsuit	Illinois Legal Aid Online
To report a collector or scam	Attorney General consumer page
To check a collection agency's license	IDFPR license lookup
Bankruptcy forms and local rules	Your district's bankruptcy court site

Debt lawsuits in Illinois

When a creditor sues in Illinois, the case is filed in the circuit court for the county where the person lives or where the contract was signed. Illinois Legal Aid Online explains that an appearance is generally due before the return date printed on the summons, or within 30 days after the summons is received. The deadline for filing a written response can differ by court.

That is why the summons matters more than any article. It lists the court, the case number, the return date, and whether an appearance and an answer are both required. Missing the date lets the creditor ask for a default judgment without proving anything.

Illinois also puts real homework on the plaintiff. Illinois Legal Aid Online notes that a complaint from a credit card company or debt buyer must name the original creditor, give the last four digits of the account, state the date of the last payment, address whether the case is within the limitation period, and show the original balance. A debt buyer must also file an affidavit under Supreme Court Rule 280.2 tracing the chain of title, and a collection agency must be licensed by IDFPR and file an assignment with the complaint.

A good starting point is what to do when you're sued for a debt, alongside the debt lawsuit response checklist. In Cook County, the Early Resolution Program connects people with a free attorney at the first court date.

Statute of limitations basics

Illinois splits limitation periods by the kind of paperwork behind the debt. Under 735 ILCS 5/13-206, actions on written contracts, promissory notes, and other written evidence of debt must be brought within 10 years. Under 735 ILCS 5/13-205, unwritten contracts and civil actions not otherwise covered get 5 years. Both sections carve out contracts for the sale of goods under the Uniform Commercial Code.

Illinois Legal Aid Online lists how these usually sort out in practice: credit card debt and medical debt at five years, auto loans and sales of goods at four, government debts at seven, and written contracts at ten. Which bucket a given account falls into is a fact question about the paperwork, so it is worth checking rather than assuming.

Illinois Legal Aid Online also notes that Illinois law generally sets the limitation period for a case filed in Illinois, even when the contract points to another state. An expired period is a defense a person has to raise; courts do not apply it on their own. Read how the statute of limitations on debt works before deciding anything about an old account.

Wage garnishment and protected income

Illinois calls it a wage deduction, and the cap is tighter than the federal one. Under 735 ILCS 5/12-803, the amount subject to a deduction order for any work week is the lesser of two figures: 15 percent of gross pay for that week, or the amount by which disposable earnings exceed 45 times the minimum hourly wage — using the federal or the Illinois minimum wage, whichever is greater.

Compare that to the federal floor. The U.S. Department of Labor's Fact Sheet #30 explains that ordinary garnishments are capped at the lesser of 25 percent of disposable earnings or the amount above 30 times the federal minimum wage. Where a state law and the CCPA differ, the rule producing the smaller garnishment applies. Illinois producing a lower number in most paychecks is the whole point of the state cap.

Different rules apply to support orders, taxes, and federal debts. The same DOL fact sheet notes that child support and alimony orders can reach 50 or 60 percent of disposable earnings, and that federal agencies can garnish up to 15 percent for defaulted federal debts including student loans. The CCPA also bars an employer from firing someone over garnishment for a single debt.

One caveat matters everywhere: once wages land in a bank account, they can lose their wage character, and a judgment creditor may try to freeze the account. Our wage garnishment guide covers the federal baseline and how exemption claims generally work.

Bankruptcy in Illinois

Bankruptcy is federal, but it runs through local courts. Which of Illinois's three districts handles a case depends on where the filer lives. Each district posts local rules, forms, filing locations, and self-representation tools: Northern, Central, and Southern. All three offer an electronic self-representation system for people filing without a lawyer, and the Northern District runs a pro se help desk in Chicago.

State law decides which property exemptions a filer can use. Illinois has opted out of the federal exemption list: 735 ILCS 5/12-1201 says Illinois residents are prohibited from using the federal exemptions in 11 U.S.C. §522(d), so Illinois filers use the Illinois set.

The Illinois homestead exemption is in 735 ILCS 5/12-901, which protects an interest of up to $50,000 in a residence, with co-owners each capped at a proportionate share of $100,000. That section was amended by Public Act 104-120, effective January 1, 2026. Exemption figures do change, so it is worth confirming the current text before relying on a number.

For the big picture, start with our bankruptcy hub, the guide to Chapter 7, and filing without a lawyer. If bankruptcy is one of several options on the table, debt relief compares them.

Free and low-cost legal help

Many Illinois residents qualify for free help and never use it. Illinois Legal Aid Online routes people to legal aid offices, hosts Easy Form tools that draft an appearance or an answer, and lists legal self-help centers around the state. Illinois Court Help answers procedure questions by phone or text at (833) 411-1121.

The Attorney General's consumer division takes complaints and publishes a legal assistance referral list. Nationally, the LSC legal aid finder covers every state.

Common mistakes to avoid

• ✕Reading a blog table instead of the summons. In Illinois the return date and the instructions printed on your summons control, and the response rules can differ by court.
• ✕Assuming every old credit card is time-barred at five years. Illinois runs 10 years on written contracts and 5 on unwritten ones, and which applies depends on the paperwork.
• ✕Signing a written payment promise on an old debt before checking the dates. Under 735 ILCS 5/13-206 a written payment or promise can restart the ten-year clock.
• ✕Assuming a wage deduction can take a quarter of the check. The Illinois cap is the lesser of 15 percent of gross weekly pay or the amount over 45 times the minimum wage.
• ✕Not checking whether the collection agency suing is licensed. Illinois collection agencies are licensed by IDFPR, and the license is searchable online.
• ✕Paying a company for help before trying Illinois Legal Aid Online and Illinois Court Help, which are free.

Credit repair companies in Illinois: registration, bond, and how to check

Illinois regulates credit repair companies as credit services organizations under the Credit Services Organizations Act, 815 ILCS 605. Section 9 requires a company to file a registration statement with the Secretary of State before conducting business in Illinois, listing its registered agent, its 10 percent owners, its surety company, and any litigation or unresolved complaints. The Secretary of State may charge a filing fee of up to $100.

Advance fees are the pressure point. Under 815 ILCS 605/5, a company may not take any money before it has fully performed the services it agreed to perform unless it holds a surety bond that complies with section 10. Section 10 sets that bond at $100,000, requires a copy to be filed with the Secretary of State, runs it in favor of anyone damaged by a violation, and keeps it in place for two years after the company stops operating.

How to check a company: section 9(d) requires the company to keep a copy of its registration statement and to let a buyer inspect it on request. Asking for it, and for the surety company name and bond number, is a fast filter. Then search the CFPB complaint database.

How to complain: the Illinois Attorney General's complaint page and the CFPB.

The federal floor everywhere: the Credit Repair Organizations Act (15 U.S.C. §1679) bans advance fees, requires a written contract, and gives a three-business-day right to cancel. Accurate, timely items cannot be removed by anyone. How to vet an offer is on credit repair services.

Finding a bankruptcy attorney in Illinois

Illinois has three federal bankruptcy districts — Northern, Central, and Southern — and a case is filed in the one serving the county where the filer lives. Each district site posts local rules, local forms, and its pro se or volunteer-lawyer program. The Northern District lists a volunteer attorney panel and a bankruptcy pro se help desk.

The Illinois State Bar Association's Illinois Lawyer Finder offers two paths: a free online directory search, and a phone referral that provides a 30-minute consultation for no more than $25.

If income is limited, the LSC legal aid locator finds the federally funded program for any Illinois address, and the NACBA member directory lists consumer bankruptcy attorneys by ZIP code. The ordered path, what a consultation costs, and the questions to ask before paying are on how to find a bankruptcy attorney near you.

Frequently asked questions

How much of my paycheck can be garnished in Illinois?

Under 735 ILCS 5/12-803, a wage deduction order can reach the lesser of 15 percent of gross pay for the work week or the amount by which disposable earnings exceed 45 times the minimum hourly wage, using the federal or Illinois minimum wage, whichever is greater. That is tighter than the federal ceiling of 25 percent of disposable earnings, and the Department of Labor explains that where state and federal rules differ, the one producing the smaller garnishment applies.

What is Illinois's statute of limitations on credit card debt?

Illinois splits it by paperwork: 735 ILCS 5/13-206 gives 10 years for written contracts and other written evidence of debt, and 735 ILCS 5/13-205 gives 5 years for unwritten contracts and civil actions not otherwise provided for. Illinois Legal Aid Online lists credit card debt at five years in practice, but which section applies depends on the documents behind the account, so it is worth checking rather than assuming.

Can a payment restart the statute of limitations on an old debt in Illinois?

Section 13-206 says that a payment or a new promise to pay made in writing can restart the ten-year period on a written obligation. That is why many people check the dates before signing anything or paying on an account they have not touched in years.

How long do I have to respond to a debt lawsuit in Illinois?

Illinois Legal Aid Online explains that an appearance is generally due before the return date printed on the summons, or within 30 days after the summons is received, and that the deadline for filing a written response can differ by court. The summons itself lists the court, the case number, the return date, and whether an appearance and an answer are both required.

Does Illinois let bankruptcy filers use the federal exemptions?

No. Under 735 ILCS 5/12-1201, Illinois residents are prohibited from using the federal exemptions in 11 U.S.C. §522(d), so Illinois filers use the Illinois exemption set. The Illinois homestead exemption in 735 ILCS 5/12-901 protects an interest of up to $50,000 in a residence, with co-owners each capped at a proportionate share of $100,000, as amended effective January 1, 2026.

What does an Illinois debt buyer have to include in its complaint?

Illinois Legal Aid Online notes that a complaint from a credit card company or debt buyer must name the original creditor, give the last four digits of the account, state the date of the last payment, address whether the case is within the limitation period, and show the original balance. A debt buyer must also file an affidavit under Supreme Court Rule 280.2 tracing the chain of title.

How do I check whether a collection agency can sue me in Illinois?

Illinois collection agencies are licensed by the Illinois Department of Financial and Professional Regulation, and Illinois Legal Aid Online points to the IDFPR license lookup as the way to check. A collection agency also has to file an assignment along with its complaint, so the court file itself shows whether that step was taken.

Where do I find legal aid in Illinois?

Illinois Legal Aid Online is the statewide portal, with plain-language guides, Easy Form tools that draft an appearance or an answer, and a directory of legal self-help centers. Illinois Court Help answers procedure questions by phone or text at (833) 411-1121, and the Attorney General's consumer division publishes a legal assistance referral list.

Do credit repair companies have to be registered in Illinois?

Yes. Under 815 ILCS 605/9, a credit services organization must file a registration statement with the Secretary of State before conducting business in Illinois. It may only take money before finishing the work if it holds the $100,000 surety bond described in section 10, and section 9(d) lets a buyer inspect the registration statement on request. Registration is a filing, not an endorsement, and the federal CROA rules still apply.

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