101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB0281

 

Introduced , by Rep. Will Guzzardi

 

SYNOPSIS AS INTRODUCED:
 
735 ILCS 5/2-201.5 new
735 ILCS 5/2-1303  from Ch. 110, par. 2-1303
735 ILCS 5/2-1602
735 ILCS 5/12-108  from Ch. 110, par. 12-108
735 ILCS 5/12-109  from Ch. 110, par. 12-109
735 ILCS 5/12-803  from Ch. 110, par. 12-803
735 ILCS 5/12-901  from Ch. 110, par. 12-901
735 ILCS 5/12-1001  from Ch. 110, par. 12-1001
815 ILCS 205/4.06 new

    Amends the Code of Civil Procedure. Provides that a summons issued in an action to collect a debt shall include a separate notice containing specified language regarding debtor rights. Provides that the clerk of the court shall cause the notice to be posted in courtrooms or in the hallway in front of courtrooms and be available for distribution in all courtrooms hearing cases involving debt collection matters. Provides that a judgment may be revived by filing a petition to revive the judgment in the fifth year after its entry (instead of the seventh year after its entry, or in the seventh year after its last revival, or in the twentieth year after its entry, or at any other time within 20 years after its entry if the judgment becomes dormant). Provides that a petition to revive the judgment may be granted only if citation proceedings were initiated within one year of the judgment being entered. Changes the limitations period for the enforcement of certain judgments from 7 to 5 years. Makes changes in provisions governing: wages subject to garnishment; the homestead exemption from judgments; and personal property exempt from judgments. Amends the Interest Act. Provides that consumer debt judgments of $25,000 or less shall draw interest at a rate of 2% per annum. Effective immediately.


LRB101 00385 LNS 45391 b

 

 

A BILL FOR

 

HB0281LRB101 00385 LNS 45391 b

1    AN ACT concerning civil law.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Code of Civil Procedure is amended by
5changing Sections 2-1303, 2-1602, 12-108, 12-109, 12-803,
612-901, and 12-1001, and by adding Section 2-201.5 as follows:
 
7    (735 ILCS 5/2-201.5 new)
8    Sec. 2-201.5. Debtor notice.
9    (a) A summons issued in an action to collect a debt shall
10include a separate notice containing the following language
11printed prominently in large font:
12        "IF YOU OWE A DEBT, YOU HAVE RIGHTS
13        You Can PROTECT:
14            Your Social Security
15            Your SSI
16            Your Public Benefits
17            Your Veterans Benefits
18            Your Retirement Benefits
19            $7,500 in Equity in a Motor Vehicle
20            $150,000 to $200,000 in Equity in your Home
21            $15,000 in your Bank Account
22        You Can STOP:
23            Phone Calls from Debt Collectors

 

 

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1            Verbal Abuse from Debt Collectors
2            Threats from Debt Collectors
3        You Have the RIGHT:
4            To Privacy
5            To Have the Court Review Any Agreement to Settle
6        Your Case
7            To Ask for a Reasonable Payment Plan".
8    (b) The clerk of the court, in consultation with civil
9legal service providers who service the applicable judicial
10circuit, shall compile a list of civil legal service providers,
11including their addresses and telephone numbers, and make the
12list available to the public. The notice in subsection (a)
13shall include the list of civil legal service providers
14complied by the clerk of the court.
15    (c) The clerk of the court shall cause the notice in
16subsection (a) to be posted in courtrooms or in the hallway in
17front of courtrooms and be available for distribution in all
18courtrooms hearing cases involving debt collection matters.
 
19    (735 ILCS 5/2-1303)  (from Ch. 110, par. 2-1303)
20    Sec. 2-1303. Interest on judgment. Except as provided in
21Section 4.06 of the Interest Act, judgments Judgments recovered
22in any court shall draw interest at the rate of 9% per annum
23from the date of the judgment until satisfied or 6% per annum
24when the judgment debtor is a unit of local government, as
25defined in Section 1 of Article VII of the Constitution, a

 

 

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1school district, a community college district, or any other
2governmental entity. When judgment is entered upon any award,
3report or verdict, interest shall be computed at the above
4rate, from the time when made or rendered to the time of
5entering judgment upon the same, and included in the judgment.
6Interest shall be computed and charged only on the unsatisfied
7portion of the judgment as it exists from time to time. The
8judgment debtor may by tender of payment of judgment, costs and
9interest accrued to the date of tender, stop the further
10accrual of interest on such judgment notwithstanding the
11prosecution of an appeal, or other steps to reverse, vacate or
12modify the judgment.
13(Source: P.A. 85-907.)
 
14    (735 ILCS 5/2-1602)
15    Sec. 2-1602. Revival of judgment.
16    (a) A judgment may be revived by filing a petition to
17revive the judgment in the fifth seventh year after its entry,
18or in the seventh year after its last revival, or in the
19twentieth year after its entry, or at any other time within 20
20years after its entry if the judgment becomes dormant and by
21serving the petition and entering a court order for revival as
22provided in the following subsections. The provisions of Public
23Act 96-305 this amendatory Act of the 96th General Assembly are
24declarative of existing law.
25    (b) A petition to revive a judgment shall be filed in the

 

 

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1original case in which the judgment was entered. The petition
2shall include a statement as to the original date and amount of
3the judgment, court costs expended, accrued interest, and
4credits to the judgment, if any. The petition to revive the
5judgment may be granted only if citation proceedings under
6Section 2-1402 were initiated within one year of the judgment
7being entered.
8    (c) Service of notice of the petition to revive a judgment
9shall be made in accordance with Supreme Court Rule 106.
10    (d) An order reviving a judgment shall be for the original
11amount of the judgment. The plaintiff may recover interest and
12court costs from the date of the original judgment. Credits to
13the judgment shall be reflected by the plaintiff in
14supplemental proceedings or execution.
15    (e) If a judgment debtor has filed for protection under the
16United States Bankruptcy Code and failed to successfully
17adjudicate and remove a lien filed by a judgment creditor, then
18the judgment may be revived only as to the property to which a
19lien attached before the filing of the bankruptcy action.
20    (f) A judgment may be revived as to fewer than all judgment
21debtors, and such order for revival of judgment shall be final,
22appealable, and enforceable.
23    (g) This Section does not apply to a child support judgment
24or to a judgment recovered in an action for damages for an
25injury described in Section 13-214.1, which need not be revived
26as provided in this Section and which may be enforced at any

 

 

HB0281- 5 -LRB101 00385 LNS 45391 b

1time as provided in Section 12-108.
2    (h) If a judgment becomes dormant during the pendency of an
3enforcement proceeding against wages under Part 14 of this
4Article or under Article XII, the enforcement may continue to
5conclusion without revival of the underlying judgment so long
6as the enforcement is done under court supervision and includes
7a wage deduction order or turn over order and is against an
8employer, garnishee, or other third party respondent.
9(Source: P.A. 98-557, eff. 1-1-14; 99-744, eff. 8-5-16.)
 
10    (735 ILCS 5/12-108)  (from Ch. 110, par. 12-108)
11    Sec. 12-108. Limitation on enforcement.
12    (a) Except as herein provided, no judgment shall be
13enforced after the expiration of 5 7 years from the time the
14same is rendered, except upon the revival of the same by a
15proceeding provided by Section 2-1601 of this Act; but real
16estate, levied upon within the 5 7 years, may be sold to
17enforce the judgment at any time within one year after the
18expiration of the 5 7 years. A judgment recovered in an action
19for damages for an injury described in Section 13-214.1 may be
20enforced at any time. Child support judgments, including those
21arising by operation of law, may be enforced at any time.
22    (b) No judgment shall be enforced against a police officer
23employed by a municipality if the corporate authority of the
24municipality files with the clerk of the court in which the
25judgment was entered a statement certifying: (1) such police

 

 

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1officer was employed by the municipality and was within the
2scope and course of his employment at the time of the
3occurrence giving rise to the action in which the judgment is
4entered and (2) the municipality indemnifies the police officer
5in the amount of the judgment and interest thereon. In such
6event, the judgment creditor may enforce the judgment against
7the municipality in the same manner and to the same extent as
8if the municipality were the judgment debtor.
9(Source: P.A. 90-18, eff. 7-1-97.)
 
10    (735 ILCS 5/12-109)  (from Ch. 110, par. 12-109)
11    Sec. 12-109. Interest on judgments.
12    (a) Except as provided in Section 4.06 of the Interest Act,
13every Every judgment except those arising by operation of law
14from child support orders shall bear interest thereon as
15provided in Section 2-1303.
16    (b) Every judgment arising by operation of law from a child
17support order shall bear interest as provided in this
18subsection. The interest on judgments arising by operation of
19law from child support orders shall be calculated by applying
20one-twelfth of the current statutory interest rate as provided
21in Section 2-1303 to the unpaid child support balance as of the
22end of each calendar month. The unpaid child support balance at
23the end of the month is the total amount of child support
24ordered, excluding the child support that was due for that
25month to the extent that it was not paid in that month and

 

 

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1including judgments for retroactive child support, less all
2payments received and applied as set forth in this subsection.
3The accrued interest shall not be included in the unpaid child
4support balance when calculating interest at the end of the
5month. The unpaid child support balance as of the end of each
6month shall be determined by calculating the current monthly
7child support obligation and applying all payments received for
8that month, except federal income tax refund intercepts, first
9to the current monthly child support obligation and then
10applying any payments in excess of the current monthly child
11support obligation to the unpaid child support balance owed
12from previous months. The current monthly child support
13obligation shall be determined from the document that
14established the support obligation. Federal income tax refund
15intercepts and any payments in excess of the current monthly
16child support obligation shall be applied to the unpaid child
17support balance. Any payments in excess of the current monthly
18child support obligation and the unpaid child support balance
19shall be applied to the accrued interest on the unpaid child
20support balance. Interest on child support obligations may be
21collected by any means available under State law for the
22collection of child support judgments.
23(Source: P.A. 98-563, eff. 8-27-13.)
 
24    (735 ILCS 5/12-803)  (from Ch. 110, par. 12-803)
25    Sec. 12-803. Wages subject to collection.

 

 

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1    (a) The wages, salary, commissions and bonuses protected
2from subject to collection under a deduction order, for any
3work week shall be the greater of: lesser of (1) 15%
4        (1) 90% of such gross amount paid for that week; or
5        (2) the amount by which disposable earnings for a week
6    exceed 60 45 times the Federal Minimum Hourly Wage
7    prescribed by Section 206(a)(1) of Title 29 of the United
8    States Code, as amended, or, under a wage deduction summons
9    served on or after January 1, 2006, the minimum hourly wage
10    prescribed by Section 4 of the Minimum Wage Law, whichever
11    is greater, in effect at the time the amounts are payable.
12    (b) This Section provision (and no other) applies
13irrespective of the place where the compensation was earned or
14payable and the State where the employee resides. No amounts
15required by law to be withheld may be taken from the amount
16collected by the creditor. The term "disposable earnings" means
17that part of the earnings of any individual remaining after the
18deduction from those earnings of any amounts required by law to
19be withheld. "Deduction from those earnings" includes, but is
20not limited to, deductions for health insurance, deductions for
21transportation, and pre-tax flexible spending deductions.
22(Source: P.A. 94-306, eff. 1-1-06; 95-661, eff. 1-1-08.)
 
23    (735 ILCS 5/12-901)   (from Ch. 110, par. 12-901)
24    Sec. 12-901. Amount. Every individual is entitled to an
25estate of homestead to the extent in value of $150,000 $15,000

 

 

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1of his or her interest in a farm or lot of land and buildings
2thereon, a condominium, or personal property, owned or rightly
3possessed by lease or otherwise and occupied by him or her as a
4residence, or in a cooperative that owns property that the
5individual uses as a residence. That homestead and all right in
6and title to that homestead is exempt from attachment,
7judgment, levy, or judgment sale for the payment of his or her
8debts or other purposes and from the laws of conveyance,
9descent, and legacy, except as provided in this Code or in
10Section 20-6 of the Probate Act of 1975. This Section is not
11applicable between joint tenants or tenants in common but it is
12applicable as to any creditors of those persons. If 2 or more
13individuals own property that is exempt as a homestead, the
14value of the exemption of each individual may not exceed his or
15her proportionate share of $200,000 $30,000 based upon
16percentage of ownership.
17(Source: P.A. 94-293, eff. 1-1-06.)
 
18    (735 ILCS 5/12-1001)   (from Ch. 110, par. 12-1001)
19    Sec. 12-1001. Personal property exempt. The following
20personal property, owned by the debtor, is exempt from
21judgment, attachment, or distress for rent:
22        (a) The necessary wearing apparel, bible, school
23    books, and family pictures of the debtor and the debtor's
24    dependents;
25        (b) The debtor's equity interest, not to exceed $15,000

 

 

HB0281- 10 -LRB101 00385 LNS 45391 b

1    $4,000 in value, in any other property;
2        (c) The debtor's equity interest, not to exceed $7,500
3    $2,400 in value, in any one motor vehicle;
4        (d) The debtor's equity interest, not to exceed $3,000
5    $1,500 in value, in any implements, professional books, or
6    tools of the trade of the debtor;
7        (e) Professionally prescribed health aids for the
8    debtor or a dependent of the debtor;
9        (f) All proceeds payable because of the death of the
10    insured and the aggregate net cash value of any or all life
11    insurance and endowment policies and annuity contracts
12    payable to a wife or husband of the insured, or to a child,
13    parent, or other person dependent upon the insured, or to a
14    revocable or irrevocable trust which names the wife or
15    husband of the insured or which names a child, parent, or
16    other person dependent upon the insured as the primary
17    beneficiary of the trust, whether the power to change the
18    beneficiary is reserved to the insured or not and whether
19    the insured or the insured's estate is a contingent
20    beneficiary or not;
21        (g) The debtor's right to receive:
22            (1) a social security benefit, unemployment
23        compensation, or public assistance benefit;
24            (2) a veteran's benefit;
25            (3) a disability, illness, or unemployment
26        benefit; and

 

 

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1            (4) alimony, support, or separate maintenance, to
2        the extent reasonably necessary for the support of the
3        debtor and any dependent of the debtor.
4        (h) The debtor's right to receive, or property that is
5    traceable to:
6            (1) an award under a crime victim's reparation law;
7            (2) a payment on account of the wrongful death of
8        an individual of whom the debtor was a dependent, to
9        the extent reasonably necessary for the support of the
10        debtor;
11            (3) a payment under a life insurance contract that
12        insured the life of an individual of whom the debtor
13        was a dependent, to the extent reasonably necessary for
14        the support of the debtor or a dependent of the debtor;
15            (4) a payment, not to exceed $15,000 in value, on
16        account of personal bodily injury of the debtor or an
17        individual of whom the debtor was a dependent; and
18            (5) any restitution payments made to persons
19        pursuant to the federal Civil Liberties Act of 1988 and
20        the Aleutian and Pribilof Island Restitution Act, P.L.
21        100-383.
22        For purposes of this subsection (h), a debtor's right
23    to receive an award or payment shall be exempt for a
24    maximum of 2 years after the debtor's right to receive the
25    award or payment accrues; property traceable to an award or
26    payment shall be exempt for a maximum of 5 years after the

 

 

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1    award or payment accrues; and an award or payment and
2    property traceable to an award or payment shall be exempt
3    only to the extent of the amount of the award or payment,
4    without interest or appreciation from the date of the award
5    or payment.
6        (i) The debtor's right to receive an award under Part
7    20 of Article II of this Code relating to crime victims'
8    awards.
9        (j) Moneys held in an account invested in the Illinois
10    College Savings Pool of which the debtor is a participant
11    or donor and funds invested in an ABLE Account as defined
12    by Section 529 of the Internal Revenue Code, except the
13    following non-exempt contributions:
14            (1) any contribution to such account by the debtor
15        as participant or donor that is made with the actual
16        intent to hinder, delay, or defraud any creditor of the
17        debtor;
18            (2) any contributions to such account by the debtor
19        as participant during the 365 day period prior to the
20        date of filing of the debtor's petition for bankruptcy
21        that, in the aggregate during such period, exceed the
22        amount of the annual gift tax exclusion under Section
23        2503(b) of the Internal Revenue Code of 1986, as
24        amended, in effect at the time of contribution; or
25            (3) any contributions to such account by the debtor
26        as participant during the period commencing 730 days

 

 

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1        prior to and ending 366 days prior to the date of
2        filing of the debtor's petition for bankruptcy that, in
3        the aggregate during such period, exceed the amount of
4        the annual gift tax exclusion under Section 2503(b) of
5        the Internal Revenue Code of 1986, as amended, in
6        effect at the time of contribution.
7        For purposes of this subsection (j), "account"
8    includes all accounts for a particular designated
9    beneficiary, of which the debtor is a participant or donor.
10        (k) In each checking or savings account held by the
11    debtor, an amount not to exceed $4,000, until:
12            (1) a hearing has been held; and
13            (2) the debtor has been given a reasonable
14        opportunity to indicate to which personal property he
15        or she seeks to apply the exemption in subsection (b),
16        at which time the debtor may protect up to $15,000 of
17        equity in any personal property, and the funds in a
18        checking or savings account will either remain
19        protected or be subject to garnishment.
20        Upon receiving a citation to discover assets, a
21    financial institution shall not freeze the debtor's access
22    or turn over to the judgment creditor the amount in the
23    debtor's account that is $15,000 or less, but shall inform
24    the court and the judgment creditor of the exempt amount.
25    Any funds disbursed prior to the hearing that is not exempt
26    under this Section may be recovered if the disbursement was

 

 

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1    a fraudulent transfer.
2    (l) Money due the debtor from the sale of any personal
3property that was exempt from judgment, attachment, or distress
4for rent at the time of the sale is exempt from attachment and
5garnishment to the same extent that the property would be
6exempt had the same not been sold by the debtor.
7    If a debtor owns property exempt under this Section and he
8or she purchased that property with the intent of converting
9nonexempt property into exempt property or in fraud of his or
10her creditors, that property shall not be exempt from judgment,
11attachment, or distress for rent. Property acquired within 6
12months of the filing of the petition for bankruptcy shall be
13presumed to have been acquired in contemplation of bankruptcy.
14    The personal property exemptions set forth in this Section
15shall apply only to individuals and only to personal property
16that is used for personal rather than business purposes. The
17personal property exemptions set forth in this Section shall
18not apply to or be allowed against any money, salary, or wages
19due or to become due to the debtor that are required to be
20withheld in a wage deduction proceeding under Part 8 of this
21Article XII.
22(Source: P.A. 100-922, eff. 1-1-19.)
 
23    Section 10. The Interest Act is amended by adding Section
244.06 as follows:
 

 

 

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1    (815 ILCS 205/4.06 new)
2    Sec. 4.06. Interest on judgments arising out of consumer
3debt.
4    (a) As used in this Section:
5        "Consumer debt" means money or property, or the
6    equivalent, due or owing or alleged to be due or owing from
7    a natural person by reason of a transaction in which
8    property, service, or money is acquired by that natural
9    person primarily for personal, family, or household
10    purposes.
11        "Consumer debt judgment" means a judgment recovered in
12    any court against one or more natural persons arising out
13    of consumer debt. "Consumer debt judgment" does not include
14    any compensation for bodily injury or death.
15    (b) Notwithstanding Sections 2-1303 and 12-109 of the Code
16of Civil Procedure, consumer debt judgments of $25,000 or less
17shall draw interest from the date of the judgment until
18satisfied at the rate of 2% per annum.
19    (c) When a consumer debt judgment is entered upon any
20award, report, or verdict, interest shall be computed at the
21applicable rate, from the time when made or rendered to the
22time of entering judgment upon the same, and included in the
23judgment. Interest shall be computed and charged only on the
24unsatisfied portion of the consumer debt judgment as it exists
25from time to time. The judgment debtor may, by tender of
26payment of judgment, costs, and interest accrued to the date of

 

 

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1tender, stop the further accrual of interest on the consumer
2debt judgment, notwithstanding the prosecution of an appeal, or
3other steps to reverse, vacate, or modify the judgment.
4    (d) This Section applies to all consumer debt judgments
5entered after the effective date of this amendatory Act of the
6101st General Assembly.
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.