A defendant may plead a set-off or counterclaim barred by the statute of limitation or the statute of repose, while held and owned by him or her, to any action, the cause of which was owned by the plaintiff or person under whom he or she claims, before such set-off or counterclaim was so barred, and not otherwise. This section shall not affect the right of a bona fide assignee of a negotiable instrument assigned before due. The changes made to this Section by this amendatory Act of the 102nd General Assembly apply to claims initiated on or after the effective date of this amendatory Act of the 102nd General Assembly and to claims intentionally filed to preclude a defendant a reasonable opportunity to file a counterclaim within the original limitation period.
13-207.Counterclaim or set-off.
Article XIII. Limitations · Part 2. Personal Actions · Last amended 2022 · Last verified July 20, 2026
In one sentenceLets a defendant assert a set-off or counterclaim that would otherwise be time-barred, as long as the defendant held and owned it before it became barred and it's used against a claim the plaintiff owned before that point.
Full Text of 735 ILCS 5/13-207
Plain-English Summary
Ordinarily, once a claim's limitations period runs out, it's gone. This section carves out an exception for defensive use: a defendant may plead a set-off or counterclaim that's barred by a statute of limitations or repose, while that claim was held and owned by the defendant, against an action whose underlying claim was owned by the plaintiff, or the person under whom the plaintiff claims, before the set-off or counterclaim became barred.
The exception doesn't reach a bona fide assignee of a negotiable instrument that was assigned before it came due — that assignee's rights aren't affected by this defensive revival rule.
A 2022 amendment added two limits on when the current version of this rule applies: to claims initiated on or after the amendment's effective date, and to claims intentionally filed to deny a defendant a reasonable opportunity to file a counterclaim within the original limitation period.
Frequently Asked Questions
Can I raise a counterclaim that's already outside the statute of limitations?
Yes, if you held and owned that claim before it became time-barred, and it's used against a claim the plaintiff owned before the counterclaim became barred.
Does this rule let a defendant recover money beyond just defeating the plaintiff's claim?
The section describes pleading a set-off or counterclaim as a defense to the plaintiff's action, tied to the plaintiff's claim having been owned before the counterclaim became barred.
Does this exception protect an assignee of a negotiable instrument?
No, not against a bona fide assignee of a negotiable instrument that was assigned before it was due — that assignee's rights aren't affected.
What did the 2022 amendment change about this rule?
It limited the rule to claims initiated on or after the amendment's effective date, and to claims intentionally filed to deny a defendant a reasonable chance to counterclaim within the original limitation period.
Does this section apply to a claim barred by a statute of repose, not just a statute of limitations?
Yes. The text covers a set-off or counterclaim barred by either the statute of limitation or the statute of repose.
Amendment History
(Source: P.A. 102-908, eff. 5-27-22.)
Source & verification. Section text and amendment history are
reproduced verbatim from the Illinois Compiled Statutes, published by the
Illinois Compiled Statutes, Illinois General Assembly / Legislative Reference Bureau. Last verified July 20, 2026.
· Official source
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