Money & Debt

Some people who owe money don’t have income or assets 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 or spousal support debt (alimony),
• Parking fines,
• Criminal fines and criminal judgment 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 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 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 (SSDI), and Supplemental Security Income (SSI),
• Unemployment compensation,
• 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,
• 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.

Creditors also can’t access certain wages. 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 $2,250, such as tools, books, or equipment needed for the debtor’s work,
• Car equity less than $3,600,
• 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 $50,000 (or $100,000 if jointly owned by a married couple), which is protected against forced sale by the homestead exemption,
• Personal injury awards up to $22,500, and
• Pension 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.