State Debt Laws
Illinois Debt Collection Laws
Garnishment limits, exemptions, and consumer protections specific to Illinois
Illinois (IL) - At a Glance
| State Consumer Protection Law | Illinois Collection Agency Act |
| Source | 225 ILCS 425/1 et seq. |
| Covers Original Creditors? | No - third-party collectors only |
| Max Wage Garnishment | 15% of disposable earnings (federal minimum; may be lower) |
| Bank Levy Exemption | $2,000 in savings |
| Homestead Exemption | $15,000 |
Key Protections in Illinois
- Collection agencies must be licensed in Illinois
- Lower wage garnishment: 15% (vs 25% federal)
- FDCPA applies to third-party collectors
- Medical debt: enhanced consumer protections
Wage Garnishment in Illinois
After a court judgment, creditors in Illinois can garnish up to 15% of your disposable earnings (earnings after legally required deductions). This is the federal cap - Illinois follows federal law on this limit.
Exempt from garnishment: Federal benefits (Social Security, SSI, VA benefits) cannot be garnished by private creditors regardless of state law.
File a Complaint in Illinois
If a debt collector violates the FDCPA or Illinois Collection Agency Act:
- File with the Illinois Attorney General
- File with the CFPB
- Consult a consumer attorney (FDCPA violations = attorney fees paid by collector)