Money & Debt

Some people who owe money don’t have income or assets Anything a person owns that has financial value that private creditors can access. This is called being “collection-proof.” If you might be collection-proof, you can use our Debt collector letter Easy Form program to make a letter you can send to your private creditors.

What collection-proof status covers

Collection-proof status only protects against consumer debts. People must still pay:

• Child support Money paid by a parent to help another parent support a minor child or an adult child with a disability or spousal support debt (alimony),
• Parking fines,
• Criminal fines and criminal judgment An official decision by a court that ends the dispute between parties debt,
• Some federal student loans and other federal government debt, and
• Certain taxes, like federal income tax debt.

Collection-proof isn’t judgment-proof

A creditor Someone who is owed money can still go to court and get a judgment against someone who’s collection-proof. If the creditor has a valid judgment and the person’s financial situation improves, the creditor has:

• 17 years to enforce Taking legal steps to make someone do what the court tells them to do a consumer debt judgment entered after January 1, 2020, and
• 27 years to enforce a consumer debt judgment entered before then.

Collection-proof income

Common collection-proof sources of income are:

• Social Security benefits, including retirement, disability A substantial impairment that functionally limits a person in carrying out major life activities, such as walking, lifting, seeing, or learning. (SSDI), and Supplemental Security Income A federal program that gives money to low-income elderly, blind and disabled people on a monthly basis (SSI),
• Unemployment compensation, Payment for work done or damage suffered
• Veterans' benefits,
• Public housing benefits,
• Public assistance, such as SNAP (food stamps) or TANF (Temporary Assistance for Needy Families)
• Child support and alimony payments,
• Crime victim compensation,
• Life insurance proceeds paid directly to the beneficiary, A person that gets property or money from someone when they die
• Workers’ compensation and disability benefits, and
• Wrongful death settlements and awards required for basic expenses.

Banks must protect up to two months’ worth of Social Security or other government benefits directly deposited into a bank account from garnishment. When a debtor's money is taken out of their paycheck or bank account to pay for a debt they owe

Creditors also can’t access certain wages. The amount of money that a person is paid for work they do Earned income below 45 times the Illinois minimum wage is collection-proof. The threshold amount is:

• $675/week (45 times the $15 Illinois minimum wage) for 2025, and
• $630/week (45 times the $14 Illinois minimum wage) for 2024.

Creditors can only garnish up to 15% of gross wages or the amount above the year’s threshold, whichever is less.

Collection-proof assets

Collection-proof assets include:

• Tools of the trade up to $1,500, such as tools, books, or equipment needed for the debtor’s A person who owes money to someone else work,
• Car equity Amount that is left after a person pays off their loan less than $2,400,
• Personal property less than $4,000 total, known as the “wildcard” exemption, which can cover cash, tax refunds, or other valuable property,
• Home equity in a primary residence less than $15,000 (or $30,000 if jointly owned by a married couple), which is protected against forced sale When property is taken from the owner and sold as authorized by a court order. Examples include orders related to bankruptcy or foreclosure. by the homestead exemption,
• Personal injury awards up to $15,000, and
• Pension Money paid to a person by an employer during retirement and retirement benefits in public and private plans such as 401(k)s, IRAs, and pensions, as long as the funds remain in the retirement account.

If a debtor has assets in a properly structured spendthrift trust, these assets are generally protected from creditors.