Illinois debt collection and judgment enforcement: plain answers.
The questions creditors ask most, answered in two to four sentences each. Statutory references are included so you can check them.
Judgments and enforcement
How long is a judgment enforceable in Illinois?
Seven years from entry. It can be revived by petition, and revival can extend enforcement to twenty years from the original judgment (735 ILCS 5/12-108; 5/13-218). A recorded judgment lien on real estate also lasts seven years and can be re-recorded after revival.
What happens if a defendant doesn’t pay a judgment in Illinois?
The creditor uses post-judgment enforcement: a citation to discover assets to examine the debtor under oath and freeze assets, third-party citations to banks and payors, wage deductions if the debtor is an individual, turnover orders, and judgment liens on real estate. A debtor who ignores a citation can be held in contempt.
What is a citation to discover assets?
A court document, authorized by 735 ILCS 5/2-1402, served on a judgment debtor or a third party that requires them to disclose assets under oath. Service on the debtor creates a lien on non-exempt personal property and bars transfers; service on a bank freezes the debtor’s funds pending a turnover order.
What is a third-party citation to discover assets?
A citation served on someone other than the debtor, a bank, an employer, a customer, who holds the debtor’s property or owes the debtor money. It freezes what they hold and requires them to disclose it, so the creditor can obtain a turnover order.
How much of a paycheck can be garnished in Illinois?
Under the Illinois wage deduction statute, the amount withheld is generally limited to 15% of gross wages, or the amount by which weekly disposable earnings exceed 45 times the applicable minimum wage, whichever is less (735 ILCS 5/12-803). Wage deduction applies only to individual debtors with an employer.
What interest does a judgment earn in Illinois?
Most commercial judgments accrue 9% per year from the date of judgment (735 ILCS 5/2-1303). Certain consumer judgments under $25,000 accrue at a lower rate.
Can a judgment from another state be enforced in Illinois?
Yes. It’s registered under the Uniform Enforcement of Foreign Judgments Act (735 ILCS 5/12-650 et seq.) and then enforced like an Illinois judgment.
Unpaid invoices and contracts
How long do I have to sue on an unpaid invoice in Illinois?
Ten years for a written contract (735 ILCS 5/13-206), five years for an oral agreement (735 ILCS 5/13-205), and four years for a contract for the sale of goods under the UCC (810 ILCS 5/2-725). Practically, the sooner you act, the more assets there are to collect.
Can I recover interest and attorney’s fees on an unpaid invoice?
Interest: yes, at the contract rate if your agreement sets one, or at 5% under the Illinois Interest Act for money due on a written instrument or an account stated (815 ILCS 205/2). Attorney’s fees: only if your contract, note, or guaranty provides for them. Illinois follows the American Rule otherwise.
Is it worth hiring an attorney for a commercial debt?
Usually, if the debtor is still operating or has identifiable assets and the amount justifies the costs. An attorney demand letter alone resolves a meaningful share of commercial accounts. We’ll tell you at the consultation if an account isn’t worth pursuing.
What’s the difference between a collection agency and a collections attorney?
A collection agency can send letters and make calls. An attorney can file suit or arbitrate, obtain a judgment or award, and use the court’s enforcement powers, citations, turnover orders, wage deductions, liens, to reach the debtor’s assets. Agencies often refer accounts they can’t close to attorneys.
Arbitration and debt buyers
My contract has an arbitration clause. Can I still collect?
Yes. The clause changes where you file, not whether you can collect. We file an arbitration demand with the forum the contract names, whether in JAMS, the American Arbitration Association, or another, and pursue the same claims, obtain an award, and confirm the award as a judgment in court. From there, enforcement is identical: citations, turnover orders, wage deductions, and liens.
What should a debt buyer check before buying a portfolio?
Whether the contracts are enforceable and what they say about interest, fees, venue, and arbitration; whether the seller can document title to each account; how old the accounts are against Illinois limitations periods; how complete the documentation is; and who the debtors are, operating businesses, individuals with wages, or dissolved entities. We review portfolios on these points before purchase.
Fees and working with us
How much do collection attorneys charge?
Most commercial collections are handled on contingency, a percentage of the amount recovered, with no attorney’s fee if nothing is recovered. Lenders, debt buyers, and businesses with recurring accounts often use a hybrid: a fixed monthly fee plus a reduced contingency. Contested litigation and pre-purchase portfolio review are billed hourly or flat.
Do you collect consumer debts?
No. Ansari Business Litigation handles commercial collections, which are business-to-business debts, commercial loans and guaranties, commercial leases, and purchased commercial portfolios.
Where do you practice?
Illinois. Humza Ansari is licensed in Illinois and admitted to the U.S. District Court for the Northern District of Illinois. We appear in the Circuit Court of Cook County, in counties across Illinois, and in arbitration forums as our clients’ contracts require.