Creditors find out what you own through a legal proceeding called a citation to discover assets. When a creditor serves you with citation papers, you must go to court to answer questions about your property. You may be required to bring certain documents with you, such as:

• Tax returns,
• Check registers, and
• Pay stubs.

Collection proof debtors

If you don't have income or property that your creditor can take, you are a collection proof debtor. This means your creditor may not be able to collect anything from you right away.

You will not go to jail just because you owe money on a bill or because you cannot pay a judgment. The United States outlawed the debtor's prison 200 years ago.

A collection proof debtor has more protection against creditors and collection agencies. A person is considered a collection proof debtor if they meet the following requirements:

• They have no income, their take-home pay from work is below $585 a week, or their income is from a protected source, like:
  • Public benefits,
  • Child support, or
  • Social security,
• If they own real estate, the amount of equity is below $15,000 (or $30,000 for two married owners),
• If they have a car, its value is less than $2,400, and
• The value of their personal property is not more than $4,000.

A collection proof debtor is only protected against personal, family, or household debt. Examples of this type of debt includes:

• Money owed from buying furniture or a car,
• Medical bills, or
• Credit card purchases.

Business debts are not covered. Other debts not covered include:

• Child support,
• Parking fines or other code violations, or
• Damages owed because of a car accident or property damage.

If you're a collection proof debtor, you can send a Collection proof debtor letter to creditors/collection agencies. This will inform them of your situation. 

If you're a collection proof debtor, a creditor may still sue you for the debt you owe. However, the creditor will be limited in their ability to collect on a court judgment against you.

Interacting with debt collection agencies

Always remember your rights when it comes to debt collection:

• Debt collectors cannot call you at places and times that are commonly known to be inconvenient,
• They must tell you the truth about your debt, and
• They can’t deceive you to collect a debt from you.

 
If you're having trouble with a debt collector, you may file a complaint with either the Illinois Department of Financial and Professional Regulation (IDFPR) or the Illinois Attorney General. You may also request a debt collector to stop contacting you.
 
You should also monitor your credit report to make sure no inaccurate information is reported. You can request and review your free credit report online or call (877) 322-8228.

Debt collection during the Covid-19 pandemic

Debt collectors are still able to use the same processes they used before the pandemic.

The IDFPR is encouraging debt collectors to work with people struggling with debt due to the pandemic. Your debt collector may be willing to suspend collection for a period of time.

The CARES Act may be able to help you with creditors. You can ask your creditor to make an “accommodation” if you've been impacted by Covid-19. This is available for agreements started on or after January 31, 2020.

Accommodations will be available for 120 days after the Covid-19 national emergency officially ends.
 
An accommodation could include:

• Deferring payments,
• Partial payments,
• Modified payments, or
• Avoiding delinquency.

No matter what accommodation you receive, you must be current on your loan/account. You will not be penalized for accommodation. It's important to ask for accommodations immediately if you need them. If you are already delinquent, an accommodation will not fix that.

Will my debts be forgiven because of Covid-19?

Some private companies are offering consumers debt relief options. For example, if you had a credit card debt, your credit card company might waive the late fee related to delayed payment. Or your car loan company might allow you to delay payment for a set period of months. Certain banks and credit unions are also offering consumers relief. Some relief includes offering:

• Payment deferrals,
• Fee waivers, or
• Increased credit lines.

Call your bank or credit union to find out what options are available.

 
But these actions do not forgive your debts. They still exist.
 
These actions are also temporary. After a certain date, the people you owe money to will be able to enforce your unpaid debts against you. You should prepare now by creating a debt payment plan with the people you owe money to.