Debt Hardship Program

Peoria has joined the State Comptroller’s Local Debt Recovery Program (LDRP). If you owe the city money, this program lets the city take funds from state tax payments, like income tax returns. The state will send these funds to the city until the debts are cleared or seven years pass.

To assist low-income residents, Peoria has launched a Debt Hardship Program. This program offers full or partial debt relief to qualifying individuals. We will remove accepted applicants from the LDRP, stopping the garnishment.

The program is only for individuals, not businesses. It excludes debts from city expenses, such as work orders or demolitions. However, it can forgive debts like housing fines, stormwater fees, and parking tickets.

There are two levels of relief. Full forgiveness is for those earning under 80% of the median local income. Partial relief is for those earning between 80% and 200% of the federal poverty limit. To qualify for partial relief, applicants must agree to a payment plan. Failing to make payments will result in reinstating the full debt.

You can submit applications online or on paper. You must provide proof of income. We will reject incomplete applications. City staff will then determine eligibility and the level of forgiveness. You can make appeals within 15 days of the decision.

Online Debt Hardship Program Application

Debt Hardship Program Application (PDF)