Illinois Credit Card Debt: Statute of Limitations & Laws (2026)
Illinois statute of limitations on credit card debt is 5 years (735 ILCS 5/13-205). Garnishment cap is 15% gross, stricter than federal.
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Illinois credit card debt laws, the 15 percent wage deduction cap
Reviewed by CC Payoff Calc Editorial Team. Last verified May 13, 2026. Citation: 735 ILCS 5/13-205.
The Illinois statute of limitations on credit card debt is 5 years for unwritten contracts under 735 ILCS 5/13-205 and 10 years for written contracts under 735 ILCS 5/13-206. Most credit card debt is treated as unwritten under Portfolio Acquisitions LLC v. Feltman unless the plaintiff produces the signed cardholder agreement. Illinois wage deduction is capped at 15 percent of gross weekly wages under 735 ILCS 5/12-803, stricter than the federal 25 percent. The Illinois homestead exemption is 15,000 dollars per owner. Illinois courts dismiss debt-buyer cases that fail to comply with Illinois Supreme Court Rule 280 affidavit requirements.
Plan
The 5-year versus 10-year question
Illinois has two statutes of limitations relevant to credit card debt. 735 ILCS 5/13-206 sets a 10-year period for written contracts. 735 ILCS 5/13-205 sets a 5-year period for unwritten contracts and oral promises. The classification of credit card debt sits at the intersection, and the answer matters enormously.
In Portfolio Acquisitions LLC v. Feltman (2009 Ill App 1st), the First District Appellate Court held that credit card debt is an unwritten contract subject to the 5-year period when the plaintiff cannot produce a signed cardholder agreement. Most credit card lawsuits in Illinois are filed by debt buyers who cannot produce the original signed agreement, so the 5-year rule applies in practice. If the plaintiff does produce a signed cardholder agreement, the 10-year written-contract period may apply, though some Illinois trial courts have continued to apply the 5-year rule even with documentation.
The Illinois Legal Aid Online guide to debt collection recommends raising both possible periods in the answer to preserve the SOL defense.
The 15 percent wage deduction cap
Illinois wage deduction orders (the state name for garnishment) are issued under 735 ILCS 5/12-803. The cap is the lesser of:
- 15 percent of gross weekly wages, or
- The amount by which weekly disposable earnings exceed 45 times the federal minimum wage (7.25 dollars) or the state minimum wage, whichever is greater. The Illinois minimum wage is 15.00 dollars in 2026, so 45 times 15.00 dollars equals 675 dollars per week protected.
The 15 percent cap applies to gross wages, not disposable wages. This is the strictest cap in the Midwest. For an Illinois worker earning 1,000 dollars gross per week, the maximum deduction is 150 dollars. For the same worker earning 600 dollars gross per week, the deduction is zero because the 600 dollar gross is below the 675 dollar floor.
Illinois aggregates the 15 percent across all creditors. Even if three creditors have wage deduction orders, the total deduction cannot exceed 15 percent of gross.
Citation to discover assets
After judgment, Illinois creditors typically file a citation to discover assets under 735 ILCS 5/2-1402 before filing a wage deduction summons. The citation orders the debtor to appear in court for examination about assets and income. Failure to appear can lead to a body attachment under 735 ILCS 5/2-1402(d). The Illinois Legal Aid citation guide describes how to respond.
Calculator
Settlement math for an Illinois cardholder with a 12,000 dollar judgment
A Cook County resident with a 12,000 dollar credit card judgment earning 1,100 dollars gross per week faces a wage deduction of 15 percent of 1,100 dollars, or 165 dollars per week (8,580 dollars per year). Post-judgment interest accrues at 9 percent simple under 735 ILCS 5/2-1303, adding 1,080 dollars in year one.
A lump-sum settlement at 40 percent of the principal is 4,800 dollars. With the satisfaction of judgment filed in the circuit court, the wage deduction terminates within 14 to 21 days. The pillar payoff calculator models multi-year wage deduction totals against the lump-sum cash outlay.
Illinois versus Midwest peers
| State | SOL credit card | Garnishment cap | Homestead exemption | Min wage floor protection |
|---|---|---|---|---|
| Illinois | 5 years (unwritten) | 15 percent gross | 15,000 dollars | 45 times state min wage |
| Wisconsin | 6 years | 20 percent disposable | 75,000 dollars | 30 times federal min wage |
| Indiana | 6 years | 25 percent disposable | 22,750 dollars | 30 times federal min wage |
| Iowa | 10 years (written) | 25 percent disposable | unlimited value | 30 times federal min wage |
| Michigan | 6 years | 25 percent disposable | 47,925 dollars | 30 times federal min wage |
Illinois is the strictest garnishment-cap state in the Midwest and one of the strictest nationally. The 45 times state minimum wage floor (675 dollars/week) protects low-wage workers entirely from credit card wage deduction.
Strategies
Five Illinois-specific paths
1. Plead the SOL defense and Portfolio Acquisitions v. Feltman in the answer. Illinois requires a written answer within 30 days of summons in most circuit court cases. The answer should affirmatively plead 735 ILCS 5/13-205 (5 years, unwritten) and request the plaintiff to produce the original signed cardholder agreement.
2. Demand Rule 280 compliance from debt-buyer plaintiffs. Illinois Supreme Court Rule 280 requires the affidavit attached to a debt-buyer complaint to identify the original creditor, the assignment chain, the account number, the charge-off balance, and the last payment date. Many debt-buyer affidavits are conclusory and fail Rule 280 inspection.
3. Appear at the citation to discover assets hearing. Even if you have no payment capacity, appearing prevents a body attachment. Bring documentation of all income sources and assets, prepared to assert exemptions on the record.
4. Use the Illinois exemption stack. The 4,000 dollar wildcard under 735 ILCS 5/12-1001(b), the 2,400 dollar vehicle exemption, the 15,000 dollar homestead, and the 1,500 dollar tools-of-trade exemption stack to about 22,900 dollars per individual.
5. File Chapter 7 if the debt totals exceed 25,000 dollars and income is below the Illinois median. The Illinois median household income for the Chapter 7 means test is 76,498 dollars (1 person), 95,748 dollars (2 person) for 2026 per the U.S. Trustee Program. The automatic stay halts every wage deduction at filing under 11 U.S.C. § 362.
Decision tree
- Wage below 675 dollars per week (45 times state min wage): no wage deduction possible, judgment is uncollectible from wages.
- Sued by debt buyer with conclusory affidavit: motion to dismiss under Illinois Supreme Court Rule 280.
- Last payment more than 5 years ago and no signed cardholder agreement in evidence: answer with 735 ILCS 5/13-205 limitations defense.
- Judgments total over 25,000 dollars and income below Illinois median: model Chapter 7 with state exemptions.
Resources
Primary Illinois and federal sources
- 735 ILCS 5/13-205, 5-year limitations for unwritten contracts
- 735 ILCS 5/13-206, 10-year limitations for written contracts
- 735 ILCS 5/12-803, wage deduction cap
- 735 ILCS 5/12-901, homestead exemption
- 735 ILCS 5/12-1001, personal property exemptions
- Illinois Supreme Court Rule 280, debt-buyer pleading requirements
- Illinois Attorney General Consumer Fraud Bureau
- Illinois Legal Aid Online, Managing Debt
Sibling state pages
- Indiana credit card debt laws
- Wisconsin credit card debt laws
- Iowa credit card debt laws
- Michigan credit card debt laws
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FAQ
Frequently asked questions
What is the statute of limitations on credit card debt in Illinois?
Five years for credit card debt and unwritten contracts under 735 ILCS 5/13-205, and 10 years for written contracts under 735 ILCS 5/13-206. The Illinois Supreme Court in Portfolio Acquisitions LLC v. Feltman classified credit card debt as an unwritten contract subject to the 5-year period for most cases, except where the plaintiff produces the signed cardholder agreement, in which case the 10-year written-contract period may apply.
How much can a credit card creditor garnish from my Illinois paycheck?
Illinois caps wage deduction at the lesser of 15 percent of gross weekly wages or the amount by which weekly disposable earnings exceed 45 times the federal or state minimum wage, whichever is greater, under 735 ILCS 5/12-803. This is stricter than the federal 25 percent cap. Illinois aggregates across creditors; the 15 percent cap is shared first-come, first-served regardless of how many writs are filed.
What is the Illinois homestead exemption for credit card judgments?
735 ILCS 5/12-901 protects up to 15,000 dollars of equity in a primary residence (30,000 dollars for a joint owner couple). The Illinois homestead is among the lowest in the Midwest and has not been increased since 2005. The personal property exemption under 735 ILCS 5/12-1001 covers 4,000 dollars in wildcard, 2,400 dollars in vehicle equity, and 1,500 dollars in tools of trade.
Can a debt buyer sue me in Illinois without the original cardholder agreement?
Illinois Supreme Court Rule 280 requires debt-buyer plaintiffs in small claims to attach an affidavit identifying the original creditor, the assignment chain, the account number, the charge-off balance, and the last payment date. Without these attachments, Cook County and DuPage County circuit courts routinely dismiss complaints. Debt buyers must also be licensed under the Illinois Collection Agency Act, 225 ILCS 425.
Where do I file an Illinois consumer complaint against a credit card collector?
The Illinois Attorney General Consumer Fraud Bureau accepts complaints at illinoisattorneygeneral.gov/Page-Attorney-General/Protecting-Consumers/Consumer-Complaint-Form. The Illinois Department of Financial and Professional Regulation licenses collection agencies; complaints against licensees go through IDFPR at idfpr.illinois.gov. For federal Fair Debt Collection Practices Act violations, also file with the Consumer Financial Protection Bureau.
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Quick answers
What is the statute of limitations on credit card debt in Illinois?
Five years for credit card debt and unwritten contracts under 735 ILCS 5/13-205, and 10 years for written contracts under 735 ILCS 5/13-206. The Illinois Supreme Court in Portfolio Acquisitions LLC v. Feltman classified credit card debt as an unwritten contract subject to the 5-year period for most cases, except where the plaintiff produces the signed cardholder agreement, in which case the 10-year written-contract period may apply.
How much can a credit card creditor garnish from my Illinois paycheck?
Illinois caps wage deduction at the lesser of 15 percent of gross weekly wages or the amount by which weekly disposable earnings exceed 45 times the federal or state minimum wage, whichever is greater, under 735 ILCS 5/12-803. This is stricter than the federal 25 percent cap. Illinois aggregates across creditors; the 15 percent cap is shared first-come, first-served regardless of how many writs are filed.
What is the Illinois homestead exemption for credit card judgments?
735 ILCS 5/12-901 protects up to 15,000 dollars of equity in a primary residence (30,000 dollars for a joint owner couple). The Illinois homestead is among the lowest in the Midwest and has not been increased since 2005. The personal property exemption under 735 ILCS 5/12-1001 covers 4,000 dollars in wildcard, 2,400 dollars in vehicle equity, and 1,500 dollars in tools of trade.
Can a debt buyer sue me in Illinois without the original cardholder agreement?
Illinois Supreme Court Rule 280 requires debt-buyer plaintiffs in small claims to attach an affidavit identifying the original creditor, the assignment chain, the account number, the charge-off balance, and the last payment date. Without these attachments, Cook County and DuPage County circuit courts routinely dismiss complaints. Debt buyers must also be licensed under the Illinois Collection Agency Act, 225 ILCS 425.
Where do I file an Illinois consumer complaint against a credit card collector?
The Illinois Attorney General Consumer Fraud Bureau accepts complaints at illinoisattorneygeneral.gov/Page-Attorney-General/Protecting-Consumers/Consumer-Complaint-Form. The Illinois Department of Financial and Professional Regulation licenses collection agencies; complaints against licensees go through IDFPR at idfpr.illinois.gov. For federal Fair Debt Collection Practices Act violations, also file with the Consumer Financial Protection Bureau.