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By: Robert J. Jellen

Collecting on a judgment can be a daunting task.  As of January 1, 2020, there have been major changes to collecting on consumer debt.  On May 21, 2019, Illinois has changed not only the amount of post-judgment interest on consumer debt but has severely shortened the amount of time in which a consumer debt judgment can be collected.

First, it is important to understand what a consumer debt is.  Consumer Debt is defined as money or property due or owing from a natural person by reason of a transaction in which property, services, or money is acquired by that natural person primarily for personal, family, or household purposes.  Typical forms of consumer debt generally include credit card debt or personal loans.  It is important to note that consumer debt is different than commercial debt or other types of debt.  In collecting a judgment, it is imperative to determine the type of debt that is in issue.

Section 2-1602(a-5) of the Judgment Revival Statute (735 ILCS 5/2-1602(a-5)) has shortened the amount of time that creditors may collect on consumer debt judgments rendered after January 1, 2020.  While ordinary judgments may be revived up to twenty years, consumer debt judgments may only be revived after 10 years, cutting the amount of time to revive a judgment in half.  Again, this only applies to consumer debt judgments after 2020, any judgments entered before January 1, 2020 are still subject to the 20 year limitation.

Finally, another important change in collection of consumer debt judgments is the reduction in post judgment interest.  Post judgment interest on all judgments prior to January 1, 2020 was set at 9% per annum.  With the new change in law, post judgment interest on consumer debt judgments is now at 5% per annum.  This means there is more incentive to collect consumer debt judgments as quickly and efficiently as possible.

If you are trying to collect a consumer debt, whether it is consumer or commercial, Mathis, Marifian & Richter is able to help.  Do not delay in scheduling a consultation with one of our attorneys that can assist you in collecting debts.

Professional Services Disclaimer: Please note that the information presented here is as an educational service, and while it contains information about legal issues, it is not legal advice. No warranty is made regarding the applicability of the information presented to a particular client situation, and the information set forth is not a substitute for original legal research, analysis and drafting for a particular client situation.