Legal Question in Landlord & Tenant Law in Illinois

The filing of a lawsuit, and possible subsequent judgment against you, is usually picked up by the credit reporting agencies. So, yes, if can hurt you especially if you lose even if you then pay the judgment. Not necessarily if you want to get a loan, perhaps, although it is still a "ding", but more so if you need to rent again; a landlord may see the situation as an indication that you are a "bad" tenant. Better to try to settle this out if you can.