Illinois Debt Relief

Illinois Credit Card Debt law limits the time allowed for creditors to file a lawsuit over unpaid open-ended debt such as Credit Card Debt to five years. Called a Statute of Limitations (SOL), this time limit starts from the date of the first missed payment. Any subsequent partial payment made by the debtor starts the SOL anew from the date of the partial payment. When a summons is received, the debtor has 30 days the answer. It is best to send an answer by certified mail.

Judgment Enforcement

Judgments are enforceable for seven years and can be revived within 20 years from the date of entry. Interest accrues at 9% per year. The judgment can be made a lien by filing with the recorder of deeds in the appropriate county. The lien is valid for seven years and may be revived by re-filing at the recorder of deeds. A homestead exemption of $7,500 is allowed. Personal property may be levied as well, subject to certain exemptions.

The garnishment of wages is limited to 15% of disposable income or income exceeding 45 times the Federal minimum hourly wage for a week. The State of Illinois does not recognize contracts with a judgment by confession clause (allowing automatic judgment against the debtor) in consumer contracts. Garnishment of wages is not allowed under judgment by confession unless it is separately confirmed by trial in a process called trial de novo.

Debt Settlement

Those facing debt judgments should consider Debt Settlement as a way to avoid wage garnishments and property seizures. Such agreements allow consumers to pay back debt interest free under an agreed payment schedule, rather than one ordered by the court.