If credit card bills, personal loans or medical debt have become more than you can keep up with, debt settlement may help you resolve them for less than you owe. Alliance Settlement works with Illinois residents in Chicago, Aurora, Rockford and Springfield and across the state. Here's how Illinois law affects your options.
| Illinois debt facts at a glance | |
|---|---|
| Statute of limitations (credit cards) | 5 years |
| Wage garnishment for consumer debt | Up to 15% of gross pay |
| Notable protection | Debt Settlement Consumer Protection Act |
Credit card debt and the statute of limitations in Illinois
Illinois credit card debt is usually subject to a 5-year statute of limitations; written contracts can be 10 years. The statute of limitations limits how long a creditor can sue; it doesn't erase the debt or remove it from your credit report, where negative items generally stay up to seven years.
What Illinois creditors can take from your paycheck
Illinois limits garnishment to the lesser of 15% of gross wages or the amount above 45 times the minimum wage, stricter than federal law. Garnishment only happens after a creditor wins in court; settling before that point is usually less stressful and less expensive.
Other Illinois consumer protections
Illinois licenses debt settlement companies and caps settlement fees at 15% of the savings, earned only after a creditor agrees to a settlement.
How debt relief companies are regulated in Illinois
Illinois licenses debt settlement providers through the Department of Financial and Professional Regulation. Under federal rules, debt settlement companies that sell services by phone can’t charge fees until they’ve settled or changed at least one of your debts and you’ve made a payment under that agreement. Ask any company how it is licensed or authorized to serve Illinois residents, and get every term in writing.
How debt settlement works with Alliance Settlement
- Talk to us. A no-obligation call to understand your situation.
- One monthly deposit. Instead of juggling several payments, you set aside one program deposit.
- Creditor negotiations. We work account by account toward reduced payoffs.
- Written settlements. You approve each settlement before it’s paid, and receive written confirmation.
Settlement isn’t right for everyone. It can affect your credit and may have tax consequences on forgiven amounts. Learn more in does debt settlement hurt your credit?, or get a free consultation.
Frequently asked questions
How long can a creditor sue me for credit card debt in Illinois?
Illinois credit card debt is usually subject to a 5-year statute of limitations; written contracts can be 10 years. An expired statute of limitations is a defense you usually have to raise in court, so never ignore a lawsuit, even on an old debt.
Can my wages be garnished for credit card debt in Illinois?
Illinois limits garnishment to the lesser of 15% of gross wages or the amount above 45 times the minimum wage, stricter than federal law.
Will debt settlement hurt my credit?
Usually yes at first, mostly because of missed payments during the program, but scores often begin to recover after accounts are resolved. Read our guide: does debt settlement hurt your credit?
Does Alliance Settlement work with Illinois residents?
Yes. Alliance Settlement works with clients throughout Illinois, including Chicago, Aurora, Rockford and Springfield, by phone and online.
This page provides general information, not legal or tax advice. Laws change; consult a qualified professional about your situation.