In August 2025, Illinois passed SB1738, modernizing outdated debt collection laws to better protect household assets like home equity, savings, and essential property. The win was the result of years of advocacy led by legal aid organizations, community groups, and policy experts—supported along the way by philanthropic partners who helped sustain the work.
Similar reforms are urgently needed across the country in nearly every state. Outdated exemption laws still leave families vulnerable to losing everything in a crisis, especially when facing medical debt or aggressive debt buyers using the courts as debt collection vehicles. These losses undermine inclusive prosperity, and economic justice goals from wealth-building efforts, further widen racial wealth gaps, and increase pressure on already strained safety net programs. Funders in other states can act to help change the rules.
