HB5434 EngrossedLRB097 16836 AJO 62018 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 Section 2-1402 and by adding Section 12-107.5 as
7    (735 ILCS 5/2-1402)  (from Ch. 110, par. 2-1402)
8    Sec. 2-1402. Supplementary proceedings.
9    (a) A judgment creditor, or his or her successor in
10interest when that interest is made to appear of record, is
11entitled to prosecute supplementary proceedings for the
12purposes of examining the judgment debtor or any other person
13to discover assets or income of the debtor not exempt from the
14enforcement of the judgment, a deduction order or garnishment,
15and of compelling the application of non-exempt assets or
16income discovered toward the payment of the amount due under
17the judgment. A supplementary proceeding shall be commenced by
18the service of a citation issued by the clerk. The procedure
19for conducting supplementary proceedings shall be prescribed
20by rules. It is not a prerequisite to the commencement of a
21supplementary proceeding that a certified copy of the judgment
22has been returned wholly or partly unsatisfied. All citations
23issued by the clerk shall have the following language, or



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1language substantially similar thereto, stated prominently on
2the front, in capital letters: "IF YOU FAIL YOUR FAILURE TO
6IMPRISONMENT IN THE COUNTY JAIL." The court shall not grant a
7continuance of the supplementary proceeding except upon good
8cause shown.
9    (b) Any citation served upon a judgment debtor or any other
10person shall include a certification by the attorney for the
11judgment creditor or the judgment creditor setting forth the
12amount of the judgment, the date of the judgment, or its
13revival date, the balance due thereon, the name of the court,
14and the number of the case, and a copy of the citation notice
15required by this subsection, and, in the case of a judgment
16against a debtor who is a natural person, a copy of the Income
17and Asset Form required by this Section. Service of a citation,
18citation notice, and Income and Asset Form upon a judgment
19debtor who is a natural person shall be by personal service or
20abode service as provided in Section 2-203, and served by a
21person authorized to serve process as provided by rule.
22Whenever a citation is served upon a person or party other than
23the judgment debtor, the officer or person serving the citation
24shall send to the judgment debtor, within three business days
25of the service upon the cited party, a copy of the citation and
26the citation notice, which may be sent by regular first-class



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1mail to the judgment debtor's last known address. In no event
2shall a citation hearing be held sooner than five business days
3after the mailing of the citation and citation notice to the
4judgment debtor, except by agreement of the parties. The
5citation notice need not be mailed to a corporation,
6partnership, or association. The citation notice shall be in
7substantially the following form:
9        (Name and address of Court)
10        Name of Case: (Name of Judgment Creditor),
11            Judgment Creditor v.
12            (Name of Judgment Debtor),
13            Judgment Debtor.
14        Address of Judgment Debtor: (Insert last known
15            address)
16        Name and address of Attorney for Judgment
17            Creditor or of Judgment Creditor (If no
18            attorney is listed): (Insert name and address)
19        Amount of Judgment: $ (Insert amount)
20        Name of Person Receiving Citation: (Insert name)
21        Court Date and Time: (Insert return date and time
22            specified in citation)
23    NOTICE: The court has issued a citation against the person
24named above. The citation directs that person to appear in
25court to be examined for the purpose of allowing the judgment
26creditor to discover income and assets belonging to the



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1judgment debtor or in which the judgment debtor has an
2interest. The citation was issued on the basis of a judgment
3against the judgment debtor in favor of the judgment creditor
4in the amount stated above. On or after the court date stated
5above, the court may compel the application of any discovered
6income or assets toward payment on the judgment.
7    The amount of income or assets that may be applied toward
8the judgment is limited by federal and Illinois law. The
13        (1) Under Illinois or federal law, the exemptions of
14    personal property owned by the debtor include the debtor's
15    equity interest, not to exceed $4,000 in value, in any
16    personal property as chosen by the debtor; Social Security
17    and SSI benefits; public assistance benefits; unemployment
18    compensation benefits; worker's compensation benefits;
19    veteran's benefits; circuit breaker property tax relief
20    benefits; the debtor's equity interest, not to exceed
21    $2,400 in value, in any one motor vehicle, and the debtor's
22    equity interest, not to exceed $1,500 in value, in any
23    implements, professional books, or tools of the trade of
24    the debtor.
25        (2) Under Illinois law, every person is entitled to an
26    estate in homestead, when it is owned and occupied as a



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1    residence, to the extent in value of $15,000, which
2    homestead is exempt from judgment.
3        (3) Under Illinois law, the amount of wages that may be
4    applied toward a judgment is limited to the lesser of (i)
5    15% of gross weekly wages or (ii) the amount by which
6    disposable earnings for a week exceed the total of 45 times
7    the federal minimum hourly wage or, under a wage deduction
8    summons served on or after January 1, 2006, the Illinois
9    minimum hourly wage, whichever is greater.
10        (4) Under federal law, the amount of wages that may be
11    applied toward a judgment is limited to the lesser of (i)
12    25% of disposable earnings for a week or (ii) the amount by
13    which disposable earnings for a week exceed 30 times the
14    federal minimum hourly wage.
15        (5) Pension and retirement benefits and refunds may be
16    claimed as exempt under Illinois law.
17    The judgment debtor may have other possible exemptions
18under the law.
23also has the right to seek a declaration at an earlier date, by
24notifying the clerk in writing at (insert address of clerk).
25When so notified, the Clerk of the Court will obtain a prompt
26hearing date from the court and will provide the necessary



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1forms that must be prepared by the judgment debtor or the
2attorney for the judgment debtor and sent to the judgment
3creditor and the judgment creditor's attorney regarding the
4time and location of the hearing. This notice may be sent by
5regular first class mail."
6    (b-5) The Income and Asset Form, required to be served by
7the judgment creditor in subsection (b), shall be in the
8following form:
10        (CASE CAPTION)
11        To Judgment Debtor: Please complete this form and bring
12    it with you to the hearing at (DATE, TIME, LOCATION). You
13    should also bring to the hearing any documents you have to
14    support the information you provide in this form, such as
15    pay stubs and account statements. The information you
16    provide will help the court determine whether you have any
17    property or income that can be used to satisfy the judgment
18    entered against you in this matter. The information you
19    provide must be accurate to the best of your knowledge.
20        If you fail to appear at this hearing, you could be
21    held in contempt of court and possibly arrested.
22        In answer to the citation and supplemental proceedings
23    served upon (INSERT NAME OF JUDGMENT DEBTOR), he or she
24    answers as follows:



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1        Name:.....................
2        Home Phone Number:.................
3        Home Address:....................
4        Date of Birth:......................
5        Marital Status:.....................
6        I have.........dependents.
7        Do you have a job? YES NO
8        Company's name I work for:......................
9        Company's address:..............................
10        Job:
11            I earn $....... per.......
12            If self employed, list here your business name and
13        address:
14            .............................................................
15            Income from self employment is $......... per
16        year.
17            I have the following benefits with my employer:
18            .............................................................
19        I do not have a job, but I support myself through:
20            Government Assistance $........ per month
21            Unemployment $........ per month
22            Social Security $........ per month
23            SSI $........ per month
24            Pension $........ per month
25            Other $........ per month



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1        Real Estate:
2        Do you own any real estate? YES NO
3        I own real estate at.........., with names of other
4    owners
5        .............................................................
6        Additional real estate I own:........................
7        I have a beneficial interest in a land trust. The name
8    and address of the trustee is:............. The beneficial
9    interest is listed in my name and............................
10        There is a mortgage on my real estate. State the
11    mortgage company's name and address for each parcel of real
12    estate owned:
13        .............................................................
14        An assignment of beneficial interest in the land trust
15    was signed to secure a loan from.............................
16        I have the following accounts:
17            Checking account at ..........;
18              account balance $......
19            Savings account at ..........;
20              account balance $......
21            Money market or certificate of deposit at........
22            Safe deposit box at..............................
23            Other accounts (please identify):................
24        I own:
25            A vehicle (state year, make, model, and VIN):....
26            Jewelry (please specify):........................



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1        Other property described as:......................
2            Stocks/Bonds.....................
3            Personal computer................
4            DVD player.......................
5            Television.......................
6            Stove.......................
7            Microwave.......................
8            Work tools.......................
9            Business equipment.......................
10            Farm equipment.......................
11            Other property (please specify):
12            .............................................................
13        Signature:....................
14    (c) When assets or income of the judgment debtor not exempt
15from the satisfaction of a judgment, a deduction order or
16garnishment are discovered, the court may, by appropriate order
17or judgment:
18        (1) Compel the judgment debtor to deliver up, to be
19    applied in satisfaction of the judgment, in whole or in
20    part, money, choses in action, property or effects in his
21    or her possession or control, so discovered, capable of
22    delivery and to which his or her title or right of
23    possession is not substantially disputed.
24        (2) Compel the judgment debtor to pay to the judgment
25    creditor or apply on the judgment, in installments, a
26    portion of his or her income, however or whenever earned or



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1    acquired, as the court may deem proper, having due regard
2    for the reasonable requirements of the judgment debtor and
3    his or her family, if dependent upon him or her, as well as
4    any payments required to be made by prior order of court or
5    under wage assignments outstanding; provided that the
6    judgment debtor shall not be compelled to pay income which
7    would be considered exempt as wages under the Wage
8    Deduction Statute. The court may modify an order for
9    installment payments, from time to time, upon application
10    of either party upon notice to the other.
11        (3) Compel any person cited, other than the judgment
12    debtor, to deliver up any assets so discovered, to be
13    applied in satisfaction of the judgment, in whole or in
14    part, when those assets are held under such circumstances
15    that in an action by the judgment debtor he or she could
16    recover them in specie or obtain a judgment for the
17    proceeds or value thereof as for conversion or
18    embezzlement. A judgment creditor may recover a corporate
19    judgment debtor's property on behalf of the judgment debtor
20    for use of the judgment creditor by filing an appropriate
21    petition within the citation proceedings.
22        (4) Enter any order upon or judgment against the person
23    cited that could be entered in any garnishment proceeding.
24        (5) Compel any person cited to execute an assignment of
25    any chose in action or a conveyance of title to real or
26    personal property or resign memberships in exchanges,



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1    clubs, or other entities in the same manner and to the same
2    extent as a court could do in any proceeding by a judgment
3    creditor to enforce payment of a judgment or in aid of the
4    enforcement of a judgment.
5        (6) Authorize the judgment creditor to maintain an
6    action against any person or corporation that, it appears
7    upon proof satisfactory to the court, is indebted to the
8    judgment debtor, for the recovery of the debt, forbid the
9    transfer or other disposition of the debt until an action
10    can be commenced and prosecuted to judgment, direct that
11    the papers or proof in the possession or control of the
12    debtor and necessary in the prosecution of the action be
13    delivered to the creditor or impounded in court, and
14    provide for the disposition of any moneys in excess of the
15    sum required to pay the judgment creditor's judgment and
16    costs allowed by the court.
17    (d) No order or judgment shall be entered under subsection
18(c) in favor of the judgment creditor unless there appears of
19record a certification of mailing showing that a copy of the
20citation, and a copy of the citation notice, and, in the case
21of a judgment debtor who is a natural person, the Income and
22Asset Form were served upon was mailed to the judgment debtor
23as required by subsection (b), the judgment debtor has had an
24opportunity to assert exemptions, and the payments are from
25non-exempt sources. Any action properly initiated under this
26Section may proceed notwithstanding an absent or incomplete



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1Income and Asset Form, and a judgment debtor may be examined
2for the purpose of allowing the judgment creditor to discover
3income and assets belonging to the judgment debtor or in which
4the judgment debtor has an interest.
5    (d-5) If upon examination the court determines that the
6judgment debtor does not possess any non-exempt income or
7assets, then the citation shall be dismissed.
8    (e) All property ordered to be delivered up shall, except
9as otherwise provided in this Section, be delivered to the
10sheriff to be collected by the sheriff or sold at public sale
11and the proceeds thereof applied towards the payment of costs
12and the satisfaction of the judgment. If the judgment debtor's
13property is of such a nature that it is not readily delivered
14up to the sheriff for public sale or if another method of sale
15is more appropriate to liquidate the property or enhance its
16value at sale, the court may order the sale of such property by
17the debtor, third party respondent, or by a selling agent other
18than the sheriff upon such terms as are just and equitable. The
19proceeds of sale, after deducting reasonable and necessary
20expenses, are to be turned over to the creditor and applied to
21the balance due on the judgment.
22    (f) (1) The citation may prohibit the party to whom it is
23    directed from making or allowing any transfer or other
24    disposition of, or interfering with, any property not
25    exempt from the enforcement of a judgment therefrom, a
26    deduction order or garnishment, belonging to the judgment



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1    debtor or to which he or she may be entitled or which may
2    thereafter be acquired by or become due to him or her, and
3    from paying over or otherwise disposing of any moneys not
4    so exempt which are due or to become due to the judgment
5    debtor, until the further order of the court or the
6    termination of the proceeding, whichever occurs first. The
7    third party may not be obliged to withhold the payment of
8    any moneys beyond double the amount of the balance due
9    sought to be enforced by the judgment creditor. The court
10    may punish any party who violates the restraining provision
11    of a citation as and for a contempt, or if the party is a
12    third party may enter judgment against him or her in the
13    amount of the unpaid portion of the judgment and costs
14    allowable under this Section, or in the amount of the value
15    of the property transferred, whichever is lesser.
16        (2) The court may enjoin any person, whether or not a
17    party to the supplementary proceeding, from making or
18    allowing any transfer or other disposition of, or
19    interference with, the property of the judgment debtor not
20    exempt from the enforcement of a judgment, a deduction
21    order or garnishment, or the property or debt not so exempt
22    concerning which any person is required to attend and be
23    examined until further direction in the premises. The
24    injunction order shall remain in effect until vacated by
25    the court or until the proceeding is terminated, whichever
26    first occurs.



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1    (g) If it appears that any property, chose in action,
2credit or effect discovered, or any interest therein, is
3claimed by any person, the court shall, as in garnishment
4proceedings, permit or require the claimant to appear and
5maintain his or her right. The rights of the person cited and
6the rights of any adverse claimant shall be asserted and
7determined pursuant to the law relating to garnishment
9    (h) Costs in proceedings authorized by this Section shall
10be allowed, assessed and paid in accordance with rules,
11provided that if the court determines, in its discretion, that
12costs incurred by the judgment creditor were improperly
13incurred, those costs shall be paid by the judgment creditor.
14    (i) This Section is in addition to and does not affect
15enforcement of judgments or proceedings supplementary thereto,
16by any other methods now or hereafter provided by law.
17    (j) This Section does not grant the power to any court to
18order installment or other payments from, or compel the sale,
19delivery, surrender, assignment or conveyance of any property
20exempt by statute from the enforcement of a judgment thereon, a
21deduction order, garnishment, attachment, sequestration,
22process or other levy or seizure.
23    (k) (Blank).
24    (k-5) If the court determines that any property held by a
25third party respondent is wages pursuant to Section 12-801, the
26court shall proceed as if a wage deduction proceeding had been



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1filed and proceed to enter such necessary and proper orders as
2would have been entered in a wage deduction proceeding
3including but not limited to the granting of the statutory
4exemptions allowed by Section 12-803 and all other remedies
5allowed plaintiff and defendant pursuant to Part 8 of Article
612 of this Act.
7    (k-10) If a creditor discovers personal property of the
8judgment debtor that is subject to the lien of a citation to
9discover assets, the creditor may have the court impress a lien
10against a specific item of personal property, including a
11beneficial interest in a land trust. The lien survives the
12termination of the citation proceedings and remains as a lien
13against the personal property in the same manner that a
14judgment lien recorded against real property pursuant to
15Section 12-101 remains a lien on real property. If the judgment
16is revived before dormancy, the lien shall remain. A lien
17against personal property may, but need not, be recorded in the
18office of the recorder or filed as an informational filing
19pursuant to the Uniform Commercial Code.
20    (l) At any citation hearing at which the judgment debtor
21appears and seeks a declaration that certain of his or her
22income or assets are exempt, the court shall proceed to
23determine whether the property which the judgment debtor
24declares to be exempt is exempt from judgment. At any time
25before the return date specified on the citation, the judgment
26debtor may request, in writing, a hearing to declare exempt



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1certain income and assets by notifying the clerk of the court
2before that time, using forms as may be provided by the clerk
3of the court. The clerk of the court will obtain a prompt
4hearing date from the court and will provide the necessary
5forms that must be prepared by the judgment debtor or the
6attorney for the judgment debtor and sent to the judgment
7creditor, or the judgment creditor's attorney, regarding the
8time and location of the hearing. This notice may be sent by
9regular first class mail. At the hearing, the court shall
10immediately, unless for good cause shown that the hearing is to
11be continued, shall proceed to determine whether the property
12which the judgment debtor declares to be exempt is exempt from
13judgment. The restraining provisions of subsection (f) shall
14not apply to any property determined by the court to be exempt.
15    (m) The judgment or balance due on the judgment becomes a
16lien when a citation is served in accordance with subsection
17(a) of this Section. The lien binds nonexempt personal
18property, including money, choses in action, and effects of the
19judgment debtor as follows:
20        (1) When the citation is directed against the judgment
21    debtor, upon all personal property belonging to the
22    judgment debtor in the possession or control of the
23    judgment debtor or which may thereafter be acquired or come
24    due to the judgment debtor to the time of the disposition
25    of the citation.
26        (2) When the citation is directed against a third



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1    party, upon all personal property belonging to the judgment
2    debtor in the possession or control of the third party or
3    which thereafter may be acquired or come due the judgment
4    debtor and comes into the possession or control of the
5    third party to the time of the disposition of the citation.
6    The lien established under this Section does not affect the
7rights of citation respondents in property prior to the service
8of the citation upon them and does not affect the rights of
9bona fide purchasers or lenders without notice of the citation.
10The lien is effective for the period specified by Supreme Court
12    This subsection (m), as added by Public Act 88-48, is a
13declaration of existing law.
14    (n) If any provision of this Act or its application to any
15person or circumstance is held invalid, the invalidity of that
16provision or application does not affect the provisions or
17applications of the Act that can be given effect without the
18invalid provision or application.
19    (o) The changes to this Section made by this amendatory Act
20of the 97th General Assembly apply only to supplementary
21proceedings commenced under this Section on or after the
22effective date of this amendatory Act of the 97th General
24(Source: P.A. 97-350, eff. 1-1-12.)
25    (735 ILCS 5/12-107.5 new)



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1    Sec. 12-107.5. Body attachment order.
2    (a) No order of body attachment or other civil order for
3the incarceration or detention of a natural person respondent
4to answer for a charge of indirect civil contempt shall issue
5unless the respondent has first had an opportunity, after
6personal service or abode service of notice as provided in
7Section 2-203, and served by a person authorized to serve
8process as provided by rule, to appear in court to show cause
9why the respondent should not be held in contempt.
10    (b) The notice shall be an order to show cause.
11    (c) Any order issued pursuant to subsection (a) shall
12expire one year after the date of issue.
13    (d) The first order issued pursuant to subsection (a) and
14directed to a respondent may be in the nature of a recognizance
15bond in the sum of no more than $1,000.
16    (e) Upon discharge of any bond secured by the posting of
17funds, the funds shall be returned to the respondent or other
18party posting the bond, unless the court after inquiry
19determines that: (1) the judgment debtor has willfully refused
20to comply with a payment order entered in accordance with
21Section 2-1402 or an otherwise validly entered order; and (2)
22that any part of the funds constitute non-exempt funds of the
23judgment debtor, in which case the court may cause the
24non-exempt portion of the funds to be paid over to the judgment



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1    Section 97. Severability. The provisions of this Act are
2severable under Section 1.31 of the Statute on Statutes.
3    Section 99. Effective date. This Act takes effect upon
4becoming law.