The best business debt settlement companies in Illinois are subject to a unique set of state laws that still allow confessions of judgment, allow any interest rate on business loans, and leave business debt out of the debt settlement licensing law. So consider working with a licensed Illinois attorney, a company that holds client funds in trust, and a written contract that specifies fees and costs.
Do you know which Illinois laws pertain to your business, and does the provider you're considering?
Can a funder confess judgment against you in Illinois?
Yes. Under 735 ILCS 5/2-1301(c), any person holding a debt "bona fide due" may confess judgment "without process." It cannot be used in a consumer transaction, one with an individual for primarily personal, family, or household purposes. So if the MCA is to your LLC, not you individually, a confession of judgment is legal in Illinois.
It may be entered only in the county where the obligation was signed or where a defendant resides or owns property; one confessed in any other county "has no force or validity." Although New York passed a law in 2019 preventing county clerks from entering confessions against out-of-state residents, a confession may still be made in your home county. You can reopen one under Supreme Court Rule 276, with an affidavit, a verified proposed answer showing a prima facie defense, and a showing of diligence. Read more in our explainer on confessions of judgment. For Cook County, see Best business debt settlement companies Chicago.
Does Illinois usury law help if your MCA is really a loan?
Probably not. The Illinois Interest Act makes it lawful to charge "any rate or amount of interest or compensation" on "any loan made to a corporation" and on any business loan to a business association, copartnership, limited partnership or sole proprietor (815 ILCS 205/4(1)(a) and (c)). The general 9% cap and the double-interest penalty in 815 ILCS 205/6 rarely reach business borrowers, though the Act does not mention LLCs, so there may be an argument here.
The criminal usury statute, 720 ILCS 5/17-59, covers interest above 20% per annum received "from an individual," but not loans permitted under Section 4 of the Interest Act. Recharacterizing an MCA as a loan still matters if the contract is governed by New York law, where criminal usury at a rate of 25% can be raised as a defense to collection.
Are business debt settlement companies licensed in Illinois?
Probably not. Illinois' Debt Settlement Consumer Protection Act states that its purpose is "to protect consumers." It defines debt settlement as services to settle "the consumer's unsecured debt." It has no provisions pertaining to business debt. Where it applies, it requires a license, a $100,000 surety bond and client funds in trust, and limits fees to $50 for enrolling plus 15% of savings. A licensed provider may not include "any secured debt" in a settlement, so an MCA secured by a UCC filing on your receivables may be off limits. Illinois-licensed attorneys practicing law are not subject to the Act. On fees, see How much does business debt settlement cost?
Illinois has no commercial financing disclosure law, despite efforts by APR for All. The latest bill, HB 744, was re-referred to the Rules Committee on April 17, 2026, after a similar bill died in the House in 2024.
What can a funder take if it wins against you as a guarantor?
A winning funder collects 9% interest post judgment and can take all assets not exempt under Illinois law; the exemptions went up January 1, 2026. A "consumer debt" judgment does not include one against a person who guaranteed a business debt. See 735 ILCS 5/2-1303. So the funder gets the higher rate and need not leave $1,000 in any account it levies.
Exemptions a natural person may claim in Illinois as a guarantor, as of January 1, 2026
| What can the funder take from me? | How much of this am I entitled to? | What is the Illinois statute? |
|---|
| Homestead | $50,000 per person; if you share the homestead with another person, $100,000 | 735 ILCS 5/12-901 |
| Any property (wild card) | $4,000 | 735 ILCS 5/12-1001 |
| Motor vehicle | $3,600 | 735 ILCS 5/12-1001 |
| Tools of the trade | $2,250 | 735 ILCS 5/12-1001 |
| Jewelry (one item only) | $5,000 | 735 ILCS 5/12-1001 |
Property held by married persons as tenants by the entirety cannot be sold on a judgment against only one of the owners under 735 ILCS 5/12-112, unless it was transferred with the sole intent of avoiding existing debts. If your spouse did not sign as a guarantor and your provider never asked how title is held, ask why not.
How should you vet a provider given Illinois law?
No Illinois statute can help you as much as a good contract with your provider. Ask your provider:
- Do you have an Illinois attorney who can file a Rule 276 motion within days of a confessed judgment or foreign judgment filing?
- Has anyone checked whether my MCA is governed by New York or Illinois law for usury purposes?
- Where will settlement funds be deposited, and is it a trust or IOLTA account for my benefit?
- Are your fees and refund policy in writing? What does your company consider "savings"?
- Did you ask about my exemptions and how my home is titled?
Frequently Asked Questions
Can a funder get a judgment in Illinois without suing me?
Yes, if the funder included a confession of judgment as part of the commercial transaction you entered. Illinois bars them only in consumer transactions. The funder must confess in the county where you signed the obligation or where a defendant lives or has property; anywhere else, the judgment has no force.
What if the funder got a judgment in New York?
Filed with any Illinois Circuit Clerk, it becomes an original Illinois judgment on the filing date, and all Illinois procedures to reopen, vacate, or stay a judgment apply. Judgments in Illinois are good for 7 years, after which they must be "revived" to be enforceable.
How long does a funder have to sue me in Illinois?
Illinois law allows 10 years to sue on written contracts. Waiting out the statute of limitations is unlikely to work for your MCA or personal guarantee.
Does Illinois have any commercial financing disclosure laws like New York or California?
Not as of yet. The primary bill to require disclosures, HB 744, was re-referred to the House Rules Committee on April 17, 2026. Funders in Illinois need not register with the state or make any disclosures. Check the bill's status again after this fall's veto session.