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What Are the Statutes of Limitations for Debts in Illinois?

Posted on in Creditor's Rights

What Are the Statutes of Limitations for Debts in Illinois? There is no statute of limitations on how long a creditor can attempt to collect an unpaid, but there is a deadline for when they can still use litigation to receive a court judgment against the debtor. Litigation has advantages over other debt collection practices because: The debtor is legally obligated to repay what they owe. Creditors can request methods of enforcing the court order, such as wage garnishment. The mere threat of litigation may be motivation for the debtor to cooperate. If you allow the statute of limitations to expire on a debt, you are left with fewer options for collecting that debt. You must understand how the statute of limitations works to know whether it is too late to file a lawsuit over an outstanding debt. What Is the Statute of Limitations? The number of years you have before the statute of limitations expires is different depending on the state and type of debt. In Illinois, the statute of limitations is: Five years for unwritten debt agreements and open-ended agreements Ten years for written agreements and promissory notes An unwritten agreement could be an oral agreement between two parties on a debt. Credit card accounts are the most common form of open-ended agreement, which allows debtors to continually borrow and repay their debts. Many debts are entered through written agreements, which must state the terms and conditions of the loan. A promissory note, such as a mortgage or student loan, requires the borrower to repay the debt within a specified time frame and often with interest. Illinois’ statute of limitations for written agreements is longer than most other states, while its statute of limitations for unwritten and open-ended agreements is about average. When Does the Statute of Limitations Start? It is important to know that the countdown for the statute of limitations starts when the borrower first defaults on their debt and not when the agreement was first created. You may have entered a written debt agreement 10 years ago, but the statute of limitations to file a lawsuit will not have expired if the borrower stopped making debt payments less than 10 years ago. Keeping an accurate record of debt payments will prove that you have not passed the deadline. Contact a Chicago Creditor’s Rights Lawyer When a borrower defaults on their debt payments, you must decide how you will pursue collection of the debt. If you wish to use litigation, it behooves you to act sooner rather than later. A Chicago creditor’s rights attorney at Walinski & Associates, P.C., can explain how the litigation process works. Schedule a consultation by calling 312-704-0771 today.There is no statute of limitations on how long a creditor can attempt to collect an unpaid debt, but there is a deadline for when they can still use litigation to receive a court judgment against the debtor. Litigation has advantages over other debt collection practices because:

  • The debtor is legally obligated to repay what they owe.
  • Creditors can request methods of enforcing the court order, such as wage garnishment.
  • The mere threat of litigation may be motivation for the debtor to cooperate.

If you allow the statute of limitations to expire on a debt, you are left with fewer options for collecting that debt. You must understand how the statute of limitations works to know whether it is too late to file a lawsuit over an outstanding debt.

What Is the Statute of Limitations?

The number of years you have before the statute of limitations expires is different depending on the state and type of debt. In Illinois, the statute of limitations is:

  • Five years for unwritten debt agreements and open-ended agreements
  • Ten years for written agreements and promissory notes

An unwritten agreement could be an oral agreement between two parties on a debt. Credit card accounts are the most common form of open-ended agreement, which allows debtors to continually borrow and repay their debts. Many debts are entered through written agreements, which must state the terms and conditions of the loan. A promissory note, such as a mortgage or student loan, requires the borrower to repay the debt within a specified time frame and often with interest. Illinois’ statute of limitations for written agreements is longer than most other states, while its statute of limitations for unwritten and open-ended agreements is about average.

When Does the Statute of Limitations Start?

It is important to know that the countdown for the statute of limitations starts when the borrower first defaults on their debt and not when the agreement was first created. You may have entered a written debt agreement 10 years ago, but the statute of limitations to file a lawsuit will not have expired if the borrower stopped making debt payments less than 10 years ago. Keeping an accurate record of debt payments will prove that you have not passed the deadline.

Contact a Chicago Creditor’s Rights Lawyer

When a borrower defaults on their debt payments, you must decide how you will pursue collection of the debt. If you wish to use litigation, it behooves you to act sooner rather than later. A Chicago creditor’s rights attorney at Walinski & Associates, P.C., can explain how the litigation process works. Schedule a consultation by calling 312-704-0771 today.

Source:

https://www.thebalance.com/state-by-state-list-of-statute-of-limitations-on-debt-960881

Illinois Creditors Bar Association Chicago Bar Association Illinois State Bar Association
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