Debt relief in Wisconsin: collection rules, time limits and your options
Updated November 9, 2026
Wisconsin at a glance (checked November 2026)
| Wisconsin | |
|---|---|
| Time limit to sue on credit cards and most consumer debts | 6 years, and then the debt itself is wiped out |
| Wage garnishment for consumer debt | Up to 20% of take-home pay; none if your household is below the poverty line |
| State debt collection law | Wisconsin Consumer Act, which covers original creditors too |
| Who licenses debt collectors | Department of Financial Institutions (DFI) |
| Where to complain | DFI, and the CFPB |
Debt collection rules in Wisconsin
The Wisconsin Consumer Act (Wis. Stat. chapter 427) covers anyone collecting a consumer debt, including stores and lenders collecting their own accounts, not just collection agencies. It bans harassment, threats and misleading claims, and if a creditor or collector breaks it, you can sue for damages.
Collection agencies need a license from the Wisconsin Department of Financial Institutions (Wis. Stat. § 218.04). The federal Fair Debt Collection Practices Act applies to third-party collectors too: they can't call before 8 a.m. or after 9 p.m., must send you a validation notice, and have to stop collecting if you dispute the debt in writing within 30 days, until they verify it.
How long creditors have to sue
Wisconsin gives creditors 6 years for most debts, including credit cards (Wis. Stat. § 893.43). The clock usually starts when you default.
Wisconsin goes further than most states once that time is up: the debt itself is wiped out, not just the right to sue (§ 893.05).
What can be garnished in Wisconsin
A creditor with a judgment can take at most 20% of your take-home pay (Wis. Stat. § 812.34). All of your pay is protected if your household income is below the federal poverty line or you receive need-based public assistance, and a garnishment can't push your household below the poverty line.
Child support and taxes follow separate rules. Social Security and other federal benefits stay protected from ordinary creditors, even after they're deposited in your bank account.
Ways out of debt in Wisconsin
- Nonprofit credit counseling can combine your card payments into one debt management plan, usually at lower rates. The DFI licenses credit counseling, debt management and debt settlement companies and caps their fees, so check before you sign up.
- Moving a balance to a 0% card? Our balance transfer calculator shows what you'd save after the transfer fee.
- Debt settlement companies can't charge you a fee until they've actually settled a debt, under federal rules. Forgiven amounts can count as taxable income.
- Bankruptcy: Wisconsin lets you choose between its own exemption list and the federal one. The state's homestead exemption protects up to $75,000 of equity, or $150,000 for a married couple. A bankruptcy attorney can tell you which list keeps more of what you own.
Where to get help or complain
- Wisconsin Department of Financial Institutions takes complaints under the Wisconsin Consumer Act online; call 608-264-7969 or 800-452-3328.
- Legal Action of Wisconsin gives free legal help with debt and tax problems to people with low incomes; call 855-947-2529.
- Consumer Financial Protection Bureau takes complaints about collectors and lenders nationwide.
General information about Wisconsin law, not legal advice. Checked November 2026.