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Illinois Debt Collection Laws

How long a creditor can sue you in Illinois, how much of your paycheck is protected, and where to get help.

Last updated September 24, 2026 · Every rule linked to the Illinois or federal law it comes from
What's new: First published: statute limits, wage garnishment rules and collector protections, each checked against the linked law.

Illinois debt rules at a glance

The key numbers. Details and the exact law are below.

Written debts (notes, written contracts)
10 years
Oral agreements
5 years
Wage garnishment (wage deduction)
15% of gross, max
Lesser of 15% of gross pay or the amount by which weekly disposable pay exceeds 45x the federal or Illinois minimum wage, whichever is greater. 735 ILCS 5/12-803
State collection law
Collection Agency Act
Reviewer credit coming soon. This page was researched and checked against the linked primary sources by the Financialist editorial team.

How long can a creditor sue you in Illinois?

10 years for written debts, 5 for oral

Illinois gives 10 years to sue on promissory notes, written contracts and other written evidence of debt, and 5 years on unwritten contracts. Credit card cases can turn on which one applies, so check with legal aid if you are sued.

735 ILCS 5/13-206, 13-205 · read the law

A written payment or promise restarts the clock

Under the written-debt statute, if a payment or new promise to pay is made in writing, the creditor gets a new 10 years from that date.

735 ILCS 5/13-206 · read the law

How much of your paycheck can be garnished?

15% cap on wage deductions

A wage deduction order can take no more than the lesser of 15% of your gross pay for the week, or the amount by which your disposable earnings exceed 45 times the federal or Illinois minimum hourly wage, whichever is greater.

735 ILCS 5/12-803 · read the law

What debt collectors can't do in Illinois

Illinois Collection Agency Act

Collection agencies are licensed in Illinois and can be disciplined for harassment, such as calling at unusual times or with a frequency meant to harass, and for adding fees the law doesn't allow.

205 ILCS 740/9 · read the law

Federal debt collection rules

Debt collectors everywhere must follow the federal Fair Debt Collection Practices Act and the CFPB's Regulation F. A collector may not sue or threaten to sue you on a debt that is past the time limit.

12 CFR § 1006.26 · read the rule

Collectors can't sue on expired debt

Under the federal debt collection rule (Regulation F), a debt collector must not bring or threaten to bring a lawsuit to collect a time-barred debt, meaning a debt whose statute of limitations has run out.

12 CFR § 1006.26(b) · read the rule

When a debt collector contacts you

A practical order of operations.

Don't pay or promise anything on the first call

Ask for the collector's name, company, mailing address and the amount they claim. In some states a payment or promise can affect an old debt, so check the rules above first.

Ask for validation in writing

Federal law gives you the right to a validation notice listing the debt, the creditor and your right to dispute. Dispute in writing within the validation period if the debt isn't yours or the amount is wrong.

Check the date of your last payment

Compare it with your state's time limit above. If the time limit has passed, a collector may not sue or threaten to sue you.

Never ignore a lawsuit

If you are served with court papers, respond by the deadline, even on an old debt. Being out of time is usually a defense you have to raise in court. Legal aid can help.

Report abuse

Threats, harassment and calls at odd hours break federal and state law. File complaints with your state regulator and the CFPB (links below).

Free help in Illinois

Government complaint lines and nonprofit counseling. Be wary of anyone who charges upfront fees to settle debt.

Illinois Attorney General

File a complaint: illinoisattorneygeneral.gov

CFPB complaint

File a complaint about a debt collector with the Consumer Financial Protection Bureau: consumerfinance.gov/complaint

Nonprofit credit counseling

Find an NFCC member agency: NFCC agency finder. If you are considering bankruptcy, use an agency on the U.S. Trustee approved list.

Links checked September 24, 2026.

Sources

Every rule on this page comes from these laws and official resources, checked on September 24, 2026. Read the current text before you act.

Debt collection laws in other states →

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