A friend entered in foreclosure in 2014, for a condo in Chicago, IL (Chase Bank). Some time later he received a form 1099-C for cancellation of debt for around $9K. I know there's a deficiency but, while we tried contacting the bank to know what the status of that debt is, nobody in the bank seems to knows the answer.

I want to know what's the period while the bank or a collector can still claim that debt. I know the form 1099-C is only for tax reasons, but I wonder when will that debt will stop being enforceable. Or, what would be procedure, if possible, to get a deficiency waiver with the bank?


A deficiency judgment in Illinois is valid for seven years after it is entered.

A bank has the right to execute a document that treats the judgment as satisfied earlier than that date without receiving full payment, but it is unlikely to do so without partial payment or some other evidence that it would be futile to try to collect the debt (e.g. evidence that the debtor was kidnapped or disabled or dead or in prison).

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  • Thanks. That means they have 7 years after the foreclosure to claim the debt, right? Sorry, not native speaker and not sure I understand all the technical terms. – Diego Jancic Apr 12 '18 at 0:58
  • @DiegoJancic They have seven years from the date that the piece of paper called a deficiency judgment is signed by the judge. – ohwilleke Apr 12 '18 at 2:57
  • Hmm. But how do I know they are going to judge him for that? Chase never claimed that debt, sent that deficiency judgement paper or anything. How long do I have to wait to know if they ever will? – Diego Jancic Apr 12 '18 at 3:16
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    @Diego Janic In Illinois, all foreclosures are judicial. The foreclosure sale is approved and the deficiency judgment is entered by the judge at around the same time +/- a month or so. The details would be in the case file of the foreclosure case of the court that handled the foreclosure. It the judge didn't sign a deficiency judgment because the bank didn't ask for one, then there isn't a deficiency judgment. You'd have to check the court file to know. – ohwilleke Apr 12 '18 at 4:46

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