Money & Debt

Consumer debt judgments entered after January 1, 2020 last 7 years and can be revived once for another 7 years. The creditor must ask the court to revive the judgment before 10 years have passed since it was first entered. This gives the creditor a total of 17 years to collect.

If the creditor doesn’t ask the court to revive the judgment before 10 years have passed since it was first entered, the money can no longer be collected. However, a debtor can’t get a Release and Satisfaction of Judgment if the judgment expired and the debt wasn’t paid.

Judgments entered before January 1, 2020 last for 7 years and can be revived for another 7 years within the first 20 years after the date of judgment. This means the creditor has a total of 27 years to collect. If the creditor doesn’t ask the court to revive the judgment before 20 years have passed, the money can no longer be collected.

Learn about what income is protected from collection in Understanding collection-proof status basics. Social Security payments are protected against collection for consumer debt judgments, but the government can take any amount over $750 if you owe federal debts or child support. Keep Social Security funds in a separate account to avoid complications.

Wage assignments are good for:

• 3 years from the date signed if the debtor stays at the same job, or
• 2 years from the date signed if the debtor changes jobs.

We provide a Stop wage assignment Easy Form program to draft a notice to stop the assignment.

When a loan is 20 days past due the creditor can mail a Notice of Intent to Assign Wages to the debtor and the debtor’s employer. This notice must:

• Be sent by registered or certified mail,
• State the creditor will demand part of the debtor’s wages starting in 20 days,
• Include a copy of the signed wage assignment,
• Identify how much the debtor currently owes,
• Provide options for responding, and
• Include a revocation form.

The creditor can then send the employer a demand for the past-due amount with a copy of the assignment. If the debtor doesn’t revoke the assignment, once the loan is 40 days past due the employer will start paying part of the paycheck to the creditor. Debtors can use our Stop wage assignment Easy Form program to draft a notice to end the arrangement.

Creditors can pursue non-wage garnishment by seizing personal property such as cars, furniture, or other valuable items. The creditor must file a Motion for Turnover with the court. The debtor can respond and explain what items are collection-proof due to exemptions. Learn more in Understanding collection proof status basics.

If the judge grants the Motion for Turnover, the sheriff will seize property to be sold at auction, and the proceeds will be applied to the debt. Before the creditor can proceed with any sale, they must notify the debtor of their right to claim exemptions.

Yes, a creditor can secure payment by placing a lien against real estate. A lien is a legal claim against the property that makes sure the debt is paid off if the debtor sells or refinances. The lien will last for 7 years and can be renewed twice for a total of 21 years.

To place a lien, the creditor must record a memorandum of judgment with the Record of Deeds in the county where the property is located. The creditor can either take immediate action to ask a court to sell the property or wait for the debtor to decide to sell. 

A private creditor that has already placed a lien on real estate can pursue foreclosure. Foreclosure is the legal process of forcing the sale of property to satisfy debt. The creditor must file a separate foreclosure lawsuit, and the debtor can respond and assert any exemptions.

If the court rules in favor of the creditor, the property will be sold at public auction, and any funds not used to pay the debt will be returned to the debtor. Illinois law allows debtors a redemption opportunity of six months from the date of this type of sale to pay the full sale price plus interest to regain ownership of the home.

Yes, a creditor can pursue collections on a debt that’s been written off. Writing off debt, which is also called a “charge-off,” only refers to the creditor’s internal accounting procedures, not whether it can be collected.

Creditors can’t collect pre-marital debts directly from a new spouse’s separate assets unless the new spouse is a co-signer or guarantor. However, creditors can seek to collect one spouse’s debt from jointly-owned property like funds in shared bank accounts or real estate.

If either spouse wants to protect themselves from collection attempts targeting shared property, keep separate bank accounts. Real estate can also belong to one spouse. Decisions about dividing property between spouses during marriage affect how the property is handled in the event of divorce or death.