Debt Collection Problems

Debt Collection Laws

Illinois Statute of Limitations on Debt Collection

Many consumers are confused about what is meant by "statute of limitations".  Many people think that this is some kind of limit of time that the creditor has to collect a debt.  This is untrue.  In fact, in most states, a debt collector can go on collecting infinitely. 

The statute of limitations is a law restricting how long the creditor (or owner of the debt) has to file a lawsuit against the consumer to seek legal recovery.  Thus, while a collector may go on forever trying to collect a debt, they are limited in how long they will have to use the court system to collect.  

Open account or unwritten contract: 5 years. NOTE: Except, as provided in 810 ILCS 5/2- 725 (UCC), actions based on a written contract must be filed within 10 years, but if a payment or new written promise to pay is in made during the 10 year period, then the action may be commenced within 10 years after the date of the payment or promise to pay.

Domestic judgments: 20 years, but can be renewed during that 20-year period.

Tolling: A person's absence from the state or during the time that an action is stayed by injunction, court order or by statutory prohibition tolls the time limit.

Non Sufficient Funds (NSF or Payment of Negotiable Instruments) checks: 3 years of the dishonor of the draft or 10 years after the date of the draft, whichever expired first: 810 ILCS 5/3-118 

If you have further questions concerning Illinois Statute of Limitations, do not hesitate to contact SmithMarco, P.C. here for a free consultation or call us at 888-822-1777.