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UPDATE: What Are the Statutes of Limitations for Debts in Illinois?

 Posted on July 28, 2022 in Creditor's Rights

"WhatOriginally published: October 30, 2019 -- Updated: July 28, 2022

Update: In addition to understanding the time limits that apply in debt collection cases, creditors will need to know about the procedures they will need to follow to take legal action against a debtor within the applicable statute of limitations. By pursuing a legal judgment against a delinquent debtor, a creditor can ask the court to order debts to be repaid, and different methods may be available for collecting what is owed, including wage garnishment or liens against a debtor’s property.

To initiate a lawsuit against a debtor, a creditor will need to file a complaint in the applicable circuit court, which will typically be the court in the county where the debtor lives. This complaint will detail the amounts owed by the debtor, and it will ask the court to enforce the debtor’s obligations. The creditor will then need to serve a summons to the debtor. This document, which notifies the debtor of the lawsuit and informs them of when they will need to appear in court, may be served to the debtor by a sheriff or process server. After receiving the summons, the debtor must file an appearance with the court and an answer either confirming or denying the claims made in the complaint. If the debtor fails to respond correctly within 30 days, the creditor may receive a default judgment, which will allow them to take action to collect the debts owed.

It is important to follow the correct procedures when seeking judgments against debtors. By filing the correct forms, ensuring that a summons is properly served, and meeting all requirements during a case, a creditor can ensure that they will be able to collect what is owed. During this process, it is crucial to work with an attorney who understands the procedures that must be followed and the best ways to resolve any legal issues that may arise. To learn how the Chicago debt collection lawyers of Dimand Walinski Law Offices, P.C. can help creditors take the proper legal actions within the applicable statutes of limitations, contact us at 312-704-0771.

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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 the 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 Dimand Walinski Law Offices, P.C., can explain how the litigation process works. Schedule a consultation by calling 312-704-0771 today.

Source:

https://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=073500050HArt%2E+XIII+Pt%2E+2&ActID=2017&ChapterID=56&SeqStart=102300000&SeqEnd=105700000

https://www.illinoiscourts.gov/forms/approved-forms/forms-approved-forms-circuit-court/summons

 

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

 

 

 

 

 

 

 

 

 

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 Dimand Walinski Law Offices, 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

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