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New Illinois statute of limitations on municipal ordinance violations

A statute that would protect individuals from lawsuits, calls from collection agencies, as well as other collection tactics and chargers for decades-old violations was signed into law by Illinois Governor JB Pritzker on Friday, July 30, 2021.  House Bill 862 places a cap of seven years after the date of adjudication for an action to collect a debt arising from a violation of a municipal ordinance.  Previously, cities contended that there was no statute of limitations on lawsuits of this type.  County clerks have been reported to outsource collections to save money while bringing in needed revenue they are owed. 

The bill takes effect immediately and  creates a new statute, 735 ILCS 5/13-227:

  • SEC. 13-227.  COLLECTION OF DEBT ARISING FROM A MUNICIPAL VIOLATION. AN ACTION TO COLLECT A DEBT ARISING FROM A VIOLATION OF A MUNICIPAL ORDINANCE MAY NOT BE FILED MORE THAN 7 YEARS AFTER THE DATE OF ADJUDICATION.

Shorter or longer statutes may apply to contracts to purchase goods or services from a municipality.

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