Illinois debt: ten years on paper, usually five on credit cards
Illinois has two time limits for debt: ten years for written contracts and five for everything else. Many websites put credit cards in the ten-year group, but an Illinois appeals court decided in 2009 that a typical credit card debt falls under five. Illinois also licenses collection agencies and caps wage deductions at 15% of gross pay.
The check is free. If a dispute letter will help, it costs $29 ($19 for military, veterans, seniors and people with disabilities) with three follow-ups.
Who is asking you to pay?
Look at the company name at the top of the letter or in the caller ID.
Illinois at a glance
- Written contracts
- 10 years (13-206)
- Unwritten and accounts stated
- 5 years (13-205)
- Credit cards
- Usually five years (Feltman, 2009)
- Restarting a written debt
- Payment or promise must be in writing
- Wage deduction
- Lesser of 15% gross or above 45 × minimum wage
- Agency licensing
- IDFPR, Collection Agency Act
- Unlicensed collecting
- Fine up to $10,000
General information about Illinois law, with sources below. Not legal advice.
Five years or ten in Illinois
Ten years for written contracts (735 ILCS 5/13-206) and five years for unwritten contracts, including oral agreements and accounts stated (735 ILCS 5/13-205).
In Portfolio Acquisitions v. Feltman (2009), the Illinois Appellate Court held that a credit card debt was subject to the five-year period, because the application, agreement and statements did not together make a single written contract containing all the essential terms.
So if a collector says it has ten years on a credit card, ask it to show a single signed document containing all the terms. Without one, the shorter period is likely. For a written obligation, a payment or promise must itself be in writing to restart the ten-year period.
Wage deductions in Illinois
After a judgment, Illinois calls wage garnishment a "wage deduction". A wage deduction may take no more than the lesser of 15% of gross weekly wages or the amount by which disposable earnings exceed 45 times the higher of the federal or Illinois minimum hourly wage (735 ILCS 5/12-803).
At Illinois's minimum wage, that leaves the first several hundred dollars of weekly disposable pay fully protected, and the 15% cap is lower than the federal 25%.
Illinois's protections sit on top of federal law; our page on stopping a wage garnishment explains both.
Collection agency licenses in Illinois
The Collection Agency Act (205 ILCS 740, formerly 225 ILCS 425) requires collection agencies to be licensed and regulates their practices. Collection agencies are licensed by the Department of Financial and Professional Regulation (IDFPR), which reported about 1,300 active licenses in 2024.
An agency based outside Illinois that contacts you only by phone, mail or electronic means does not need an Illinois license if it is licensed in the state it contacts you from. Collecting without a required license can lead to a fine of up to $10,000. If an Illinois-based agency is collecting without a license, you can report it to IDFPR.
Compare the 5-year limit with every other state in our statute of limitations on debt by state table.
Limits vary a lot between states: by comparison, Maryland sets 3 years and New York sets 3 years for similar debts.
If your letter comes from a national company such as Velocity Investments or Walden Pierce Group, our collector guides explain who they are and how to dispute.
A Illinois summons has a short deadline. Our debt lawsuit guide covers answering it, defenses such as the time limit, and settling.
If a collector writes to you in Illinois
The dispute rights come from federal law: a written dispute inside the validation period makes the collector stop until it mails verification. The check on this page starts with Illinois already selected.
Two collectors on this site are based in Illinois: Unifin in Skokie and Afni in Bloomington.
Before paying anything in Illinois, read whether to pay a collection agency and how to request debt validation.
Questions people ask about debt in Illinois
What is the statute of limitations on credit card debt in Illinois?
Usually five years. In Portfolio Acquisitions v. Feltman (2009), the appeals court applied the five-year period because the card paperwork was not a single written contract.
Is it ever ten years in Illinois?
Yes, for a true written contract with all the essential terms in writing, under 735 ILCS 5/13-206.
How much of my pay can be taken in Illinois?
The lesser of 15% of gross weekly wages or the amount above 45 times the higher of the federal or Illinois minimum wage.
Do debt collectors need a license in Illinois?
Collection agencies need an IDFPR license. An out-of-state agency contacting you only by phone, mail or email can rely on its home-state license.
Does a payment restart an Illinois debt?
For a written obligation, the payment or promise must be in writing. Check your dates before paying anything on an old account.