Settlement can happen at any time. You can negotiate a lump sum, a payment plan, or a dismissal in exchange for proof that the account was paid or resolved. If you reach a deal, make sure the terms are put in writing and the case is dismissed in court.

If you are sued in Illinois for a consumer debt of $10,000 or less, the case will be handled under the small claims rules. These cases move quickly, and it helps to know what to expect at each step.

The Complaint starts the lawsuit

The creditor starts the lawsuit when their lawyer files a Complaint with the court. 

The Complaint states how much the creditor says you owe, and it may attach records about the account. 

For credit card debts or debts that have been sold to debt buyers, the creditor must include special paperwork.

When the complaint is filed, the clerk issues a Summons, which gives you a specific return (hearing) date and tells you if your hearing is in-person in the courthouse or remote through a video or teleconference.

Receiving the Summons and Complaint

You must be given notice of the case and served with the Summons and Complaint. Service is usually done by the sheriff or a licensed private process server, and the papers must be handed to:

• you, or
• a household member who is at least 13 and then mailed to you. 

Courts can also approve alternative service in special circumstances.
 

Filing an Appearance

In some counties, you must file a document called an Appearance that officially informs the court that you would like to participate in the case. If you do not file it on time, the judge may decide the case without hearing from you. This is called a default judgment, which means you lose the case.

You do not have to file a document called an Answer/Response in a small claims case unless ordered to by the judge.

⏳Act fast if you miss a deadline. You have 30 days after a default judgment is entered to ask the court to vacate (cancel) the judgment. It is much harder to get rid of a default judgment after 30 days. 

The first court date

Your first court date is very important. In most counties, the first court date is just a chance for the judge to get the status of the case. But in some counties, the judge may hear the case and make a decision that day. By showing up, you have the right to tell the judge your side of the story.

If you do not appear, the judge may enter a default judgment against you. You can usually get the court to undo the default judgment if you file a motion asking for that within 30 days.

NOTE:  Sometimes hearing dates will change. Make sure to keep an eye out for any mail about your court case. If you have questions about when your hearing is scheduled, call or text Illinois Court Help at (833)411-1121 or call the court clerk (their number is on the summons).

Trial

If the case goes to trial, the creditor has to prove that you owe the debt. For example, if a debt buyer is suing you, they must prove they own your account and have the legal right to collect on it. You can also raise defenses, such as the debt being too old under the statute of limitations. The judge or a jury will decide whether or not you owe the debt, and that decision will be written on a form called a Judgment.

Appeals

If you think the court made a legal error with the judgment, you can appeal the case. You typically have 30 days to file a notice of appeal. Appeals courts do not hear new evidence or retry the case. It reviews the record from the trial court to see if the judge made legal errors. Filing an appeal does not stop the creditor from enforcing the judgment, but you can file a motion to stay the enforcement.

Collection of a Judgment

If you lose the case, interest will be added, but for consumer debts under $25,000 the rate is 5% each year. The judge may allow you to pay in installments over time, up to three years. If you make these payments, collection will be paused.

If you do not pay, the creditor can try to collect the judgment. The main tools they use are:

• A citation to discover assets, which requires you to come to court and answer questions about your money and property. At the hearing, the court can order you to turn property and money over to the creditor.
• A wage deduction order, which can take up to 15% of your gross wages or the amount above a certain minimum.
• If you don't attend the citation hearing, or follow other court orders, you can be held in contempt of court and go to jail.

At least $675 of your wages each week are protected from garnishment, and you can protect up to $4,000 in your bank account by filing papers with the court.

Pay careful attention if you receive a Citation to Discover Assets to Debtor. This document requires you to go to court to give the debt collector information about your finances. You must attend this hearing. If you miss the hearing, you could be found in contempt of court and jailed.

Some income and property are protected by exemptions. Missing a citation hearing or ignoring court orders can lead to contempt.