Being sued can be terrifying – especially if you’re worried about what’s at stake. One of the most common questions we hear from Illinois residents is: If someone sues you, can they take your house?
The answer is: it depends. But there are strong protections under Illinois law – if you act early and understand your rights.
This article explains when your home could be at risk in a civil lawsuit, what legal safeguards exist – like the Illinois homestead exemption – and how to respond strategically before a lawsuit turns into a judgment. If you’ve just been served with a complaint, this guide is for you.
Not sure where to start? We help Illinois homeowners navigate lawsuits and protect their homes. If you’ve just been served, contact us now for a case-specific game plan.
Let’s start with what actually happens when someone sues you.
Key Takeaways
- Illinois law protects up to $15,000 (or $30,000 for couples) of home equity through the homestead exemption – and additional protection may apply if the home is owned by both spouses.
- Most civil lawsuits are about money, not property, and creditors rarely force the sale of a home unless there’s substantial equity beyond the protected amount.
- Insurance coverage can help, but it often comes with limits, exclusions, or conflicts that leave you partially exposed.
- The earlier you involve a civil defense lawyer, the better your chances of protecting your home, asserting legal defenses, and avoiding irreversible consequences.
What Happens If Someone Sues You in Illinois?
Getting sued is scary – but it’s not a punishment, and it doesn’t mean you’ve done anything wrong. In the United States, lawsuits are how we resolve disputes. Instead of settling conflicts through threats or violence – like people sometimes did in the past – we use the courts. A lawsuit is simply one person or company asking a judge to decide a legal question.
Just because someone sues you doesn’t mean they’re right. The plaintiff has to prove their case with evidence and follow proper legal procedures. Until they do, you don’t owe them anything.
Most civil lawsuits are about money. They can involve unpaid bills, personal injury claims, business disputes, or damage to property. The person suing you usually wants a money judgment – not your house.
What happens next depends on how you respond. If you ignore the complaint, the court can enter a default judgment against you. That’s when creditors gain powerful collection tools – including the ability to put a lien on property, freeze bank accounts, or garnish wages. But none of that happens automatically. You have a right to defend yourself, present evidence, and protect what you’ve worked for.
The earlier you respond, the more options you’ll have to avoid worst-case outcomes. Illinois law gives homeowners strong protections – but you have to assert them.
A Quick Overview of the Civil Lawsuit Process in Illinois
If you’ve never been sued before, the legal process can feel like a black box. Here’s a simplified look at what happens after someone files a lawsuit against you in Illinois:
1. Service of Process – You’ll receive legal documents, usually a summons and complaint. These documents tell you who is suing you, why, and what they want.
2. Your Response – You typically have 30 days from the date you’re served to file an answer or a motion with the court. This is your chance to admit, deny, or explain your side of the story. If you don’t respond, the court can enter a default judgment against you.
3. Discovery – If you respond, the case moves into the discovery phase. Both sides exchange information and documents, and may take depositions. This is where the facts get tested.
4. Motions and Negotiation – Before trial, either side can file motions asking the judge to rule on legal issues. Many cases settle during this phase through negotiation or mediation.
5. Trial and Judgment – If no settlement is reached, the case goes to trial. A judge or jury decides whether the plaintiff proved their case. If they win, the court enters a judgment stating how much money you owe.
6. Post-Judgment Collection – Once there’s a judgment, the other side can use legal tools to collect – including liens, garnishments, or property levies.
Most lawsuits never go all the way to trial. But understanding the stages can help you make informed decisions at each step. And the earlier you take action, the more control you have over the outcome.
That brings us to the question many people are really asking when they’re served with a lawsuit: Can they come after my house? The short answer is no – not easily. Illinois law gives homeowners important protections, especially when it comes to your primary residence. But there are limits you need to understand. Let’s take a closer look.
If Someone Sues You, Can They Take Your House in Illinois?
If someone sues you and wins a money judgment, they don’t automatically get access to your property. In Illinois, your primary residence is protected by a law called the homestead exemption.
Under 735 ILCS 5/12-901, each individual homeowner can shield up to $15,000 of equity in their home from most judgment creditors. If a home is jointly owned by a married couple, they can combine their exemptions to protect up to $30,000 of equity.
This protection applies to your main residence – the place you actually live. It can be a single-family house, condo, mobile home, or even a leased dwelling, as long as you occupy it. But the exemption doesn’t apply to second homes, vacation properties, or rental real estate. Only your primary home is covered.
Here’s how it works in practice: if your home has $25,000 in equity and you’re single, only $10,000 of that equity is vulnerable to a creditor’s claim. If you’re married and co-own the home, the full $25,000 would be protected. And even if a forced sale happened, you would be entitled to receive the first $15,000 – or $30,000 for a couple – from the proceeds before any money goes to the creditor.
In reality, this exemption makes it very difficult for creditors to justify forcing a sale unless there’s substantial equity above the protected amount. That’s why, even when judgments are entered, it’s rare for Illinois homeowners to lose their homes over unsecured civil debts.
While the homestead exemption is a critical first layer of protection, Illinois law gives married couples an additional safeguard when they own their home together. It’s called tenancy by the entirety – and in some cases, it can block a creditor from touching your home entirely. Let’s break down how it works.
Additional Protection for Married Couples
In Illinois, married couples who own their primary residence together may be eligible for an extra layer of protection called tenancy by the entirety. This is a special form of joint ownership that treats the married couple as a single legal unit, rather than two individuals.
The key benefit is this: if only one spouse is sued and the home is owned as tenancy by the entirety, a judgment creditor generally cannot force a sale of the property. That means the house is off-limits as long as the debt is owed by one spouse only and the couple remains married and living in the home.
To qualify, the home must be your primary residence, and the deed must specifically state that the property is held in tenancy by the entirety. Not all joint ownership automatically qualifies – it has to be clearly stated.
This protection isn’t absolute. If both spouses are named in the lawsuit or share responsibility for the debt, the creditor can pursue the home just like any other jointly owned property. Also, if the tenancy ends – for example, due to divorce or the death of one spouse – the creditor may be able to act on the judgment at that point.
Still, for married homeowners, this form of ownership can be a powerful legal shield. It doesn’t replace the homestead exemption – it stacks on top of it.
Even with these protections in place, your home could still be vulnerable in certain situations – especially if you have a lot of equity or the wrong kind of debt. In the next section, we’ll look at when and how a lawsuit can actually put your home at risk.
When You Could Lose Your House in a Lawsuit
Although Illinois offers strong homeowner protections, there are situations where a lawsuit can put your home at real risk. It usually comes down to one thing: equity.
Equity Beyond the Homestead Limit
The homestead exemption protects a specific dollar amount of equity – not the entire property. If your home is worth significantly more than what you owe on it, and your equity exceeds the $15,000 (or $30,000 for married couples) exemption, that surplus can potentially be taken to satisfy a judgment.
For example, say your home is worth $250,000 and you owe $200,000 on your mortgage. That’s $50,000 in equity. If you’re single, only $15,000 of that is protected. The remaining $35,000 could be exposed to a creditor if they win a judgment and pursue enforcement through a forced sale.
That doesn’t mean a sale will happen overnight. In fact, most creditors don’t rush to force a sale – it’s expensive, time-consuming, and risky. But the judgment can attach to your property as a lien, meaning you might not be able to sell or refinance without paying it off first.
Special Creditors Who Can Sidestep Homestead Protection
Some debts aren’t affected by the homestead exemption at all. These include:
- Unpaid property taxes
- Mortgages and home equity loans
- Mechanics liens (for home improvements)
- Condominium or HOA assessments
- Child support and spousal maintenance
These creditors don’t need to go through the standard judgment process to enforce their rights. In many cases, they can foreclose or evict without regard to the homestead exemption.
Knowing that your home could be at risk is one thing – but what actually happens in the real world? Most creditors don’t rush to take someone’s house, even when they technically have the right. Instead, they use the judgment as leverage. Let’s take a closer look at what they usually do after winning a case.
What Creditors Actually Do With a Judgment Against Your Home
Even if a creditor wins a lawsuit and places a lien on your home, that doesn’t mean they’ll immediately try to take it. In reality, most creditors take one of two approaches – and neither involves kicking you out overnight.
Letting the Lien Sit and Accrue Interest
The most common outcome is that the creditor records a lien and waits. The lien attaches to your home and earns interest – often at 9 percent per year in Illinois. You might not feel the effect right away, but it can come back to bite you later.
If you try to sell or refinance your home, the title company will find the lien. You’ll usually have to pay off the debt (plus interest) out of the sale proceeds before the deal can close. Creditors know this, and many are content to wait you out – especially if they believe the property will appreciate over time.
Going After a Forced Sale
In rare cases, a creditor may ask the court for a forced sale of your home. This usually only happens if:
- You have substantial equity above the homestead exemption
- The debt is large enough to justify the effort
- There are no easier ways to collect (like bank levies or wage garnishments)
A forced sale requires court approval, and the process takes time. Even if the court allows it, the creditor must pay for the sheriff’s sale and other legal costs. If the home sells, you are still entitled to the first $15,000 or $30,000 in proceeds, depending on your exemption.
This path is the exception, not the rule. Most creditors avoid it unless the numbers make sense and other options have failed.
Now that you know what judgment creditors actually do with home liens, let’s talk about another potential safety net: your insurance company. Depending on the type of lawsuit, they might be required to defend you – but it’s not always that simple.
What About Insurance – Will They Cover This?
When you’re sued, one of the first questions you should ask is whether your insurance might cover the claim. In some cases, your homeowner’s, renter’s, or auto policy may step in to provide a legal defense – and even pay the judgment if you lose.
When Lawsuits Trigger Insurance Coverage
If someone sues you for an injury that happened on your property, or for damages from a car accident, there’s a good chance your insurance policy applies. Liability coverage under a homeowners or auto policy often includes both:
- A duty to defend you in court
- A duty to pay damages (up to the policy limit) if you’re found liable
That defense is usually provided at no cost to you, through a lawyer hired by the insurance company.
Reservation of Rights and Coverage Gaps
But it’s not always a sure thing. Sometimes, the insurer will issue what’s called a “reservation of rights” letter. That means they’re defending you for now, but they may later decide that part – or all – of the claim isn’t covered.
If that happens, you could end up on the hook for part of the judgment. You might also have to fight your own insurer in a separate case just to make them pay.
What If the Judgment Exceeds Your Policy Limits?
Even when your insurer accepts coverage, they’re only obligated to pay up to the policy limits. If a jury awards more than that, you’re personally responsible for the difference.
For example, if you have $100,000 in liability coverage and the judgment is $250,000, the insurance company pays the first $100,000. The plaintiff can still try to collect the remaining $150,000 from your personal assets – including, potentially, your home equity beyond any applicable exemption.
This is another reason why early defense strategy matters. Your attorney may be able to push for a settlement within policy limits – or advise you on ways to protect yourself from an excess judgment.
Insurance Lawyers vs. Your Own Attorney
The lawyer hired by your insurance company technically represents you – but they also owe duties to the insurer. In most cases, they do a professional job. But if the insurer is reserving rights or there’s a potential conflict of interest, you may need your own attorney to look out for your interests.
In some situations, you can even demand that the insurer pay for independent counsel of your choosing. This usually requires showing a conflict between you and the insurance company – something an experienced attorney can help you evaluate
Insurance can be a powerful shield, but it’s not always enough. Whether you’re insured or not, your best protection is acting early – before a judgment puts your assets at risk. In the next section, we’ll go over practical steps you can take while the case is still in progress.
How to Protect Your Home Before It’s Too Late
The best time to protect your home is before a lawsuit ever arises – while your finances are still in good order and there’s no claim on the horizon. That’s when asset protection planning is most effective and least likely to trigger accusations of fraudulent transfer. But if you’ve already been sued, the second-best time is right now.
Take Action Early – Not After Judgment
The early stages of a lawsuit offer the best opportunity to control the outcome. Once a judgment is entered, there is often very little a lawyer can do to reverse the damage. That’s why it’s critical to act before the case reaches that point.
Responding to the complaint preserves your right to contest the claims and opens the door to strategic options – including negotiation, insurance coverage, and damage control. While it’s rare for civil cases to be dismissed outright, early intervention can narrow the issues, reduce exposure, or lead to a more manageable resolution.
Hire a Civil Defense Lawyer as Soon as Possible
Many people wait too long to get legal help, hoping the lawsuit will go away or expecting the insurance company to handle everything. But insurance lawyers represent the insurer first – not you. And if coverage is limited or denied, you’ll be facing the lawsuit alone.
Hiring a civil defense attorney at the beginning gives you a much better chance of protecting your assets – including your home. A skilled lawyer can help evaluate risks, coordinate with any insurance-provided counsel, and guide you through key decisions. They can also spot problems early, before they turn into irreversible consequences.
Don’t Count on Fixing Things After the Fact
Some people assume they can handle the lawsuit themselves and call a lawyer if things go badly. Unfortunately, by the time a judgment is entered, most legal options are off the table. You may already have a lien on your home, frozen accounts, or wage garnishment underway.
Avoiding that outcome requires early, informed action. A civil defense attorney can help you understand what’s really at stake – and how to protect what matters most.
In some cases, especially when the potential judgment is more than you can realistically pay, even the best civil defense strategy may not be enough. That’s when it may be time to consider a different kind of protection – one that comes through federal law. Let’s talk about bankruptcy.
When Bankruptcy Can Protect Your Home
Bankruptcy is often seen as a last resort – but in the right situation, it can be a powerful way to protect your home and stop a judgment from turning into a financial crisis.
When you file for bankruptcy, the court immediately issues an automatic stay. That stay halts all collection activity – including lawsuits, wage garnishments, and home liens. It gives you breathing room and puts the case on hold while your debts are sorted out under federal bankruptcy rules.
Illinois residents use state exemptions in bankruptcy, including the $15,000 homestead exemption for individuals and $30,000 for married couples. If your home equity falls within those limits, you may be able to keep your house while eliminating or restructuring other debts.
Chapter 7 can wipe out unsecured debts completely, while Chapter 13 allows you to repay some debts over time under court supervision. Either approach can prevent creditors from reaching your home – but only if the case is filed before a sale, garnishment, or levy occurs.
Bankruptcy isn’t the right solution for everyone. It has long-term consequences and doesn’t protect against every type of debt. But if a judgment is likely or already entered, and your assets are at risk, it’s worth speaking with an attorney who handles both civil defense and bankruptcy to evaluate your options.
Worried About a Lawsuit Threatening Your Home?
If someone sues you, can they take your house in Illinois? The truth is, it’s rare – but not impossible. The sooner you act, the more options you’ll have to protect your home and limit financial damage.
At Brabender Law LLC, we help Illinois residents understand their rights and respond strategically to civil lawsuits. Whether you need help defending a case, reviewing insurance coverage, or deciding whether bankruptcy makes sense, we’re here to help.
Contact us today to schedule a consultation and get a clear plan for moving forward.