Rep. Ann Williams

Filed: 3/7/2012





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2    AMENDMENT NO. ______. Amend House Bill 5434 by replacing
3everything after the enacting clause with the following:
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



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1the judgment. A supplementary proceeding shall be commenced by
2the service of a citation issued by the clerk. The procedure
3for conducting supplementary proceedings shall be prescribed
4by rules. It is not a prerequisite to the commencement of a
5supplementary proceeding that a certified copy of the judgment
6has been returned wholly or partly unsatisfied. All citations
7issued by the clerk shall have the following language, or
8language substantially similar thereto, stated prominently on
9the front, in capital letters: "IF YOU FAIL YOUR FAILURE TO
13IMPRISONMENT IN THE COUNTY JAIL." The court shall not grant a
14continuance of the supplementary proceeding except upon good
15cause shown.
16    (b) Any citation served upon a judgment debtor or any other
17person shall include a certification by the attorney for the
18judgment creditor or the judgment creditor setting forth the
19amount of the judgment, the date of the judgment, or its
20revival date, the balance due thereon, the name of the court,
21and the number of the case, and a copy of the citation notice
22required by this subsection, and a copy of the Income and Asset
23Form required by this Section. Service of a citation upon a
24judgment debtor shall be personal service or abode service as
25provided in Section 2-203. Whenever a citation is served upon a
26person or party other than the judgment debtor, the officer or



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1person serving the citation shall send to the judgment debtor,
2within three business days of the service upon the cited party,
3a copy of the citation and the citation notice, which may be
4sent by regular first-class mail to the judgment debtor's last
5known address. In no event shall a citation hearing be held
6sooner than five business days after the mailing of the
7citation and citation notice to the judgment debtor, except by
8agreement of the parties. The citation notice need not be
9mailed to a corporation, partnership, or association. The
10citation notice shall be in substantially the following form:
12        (Name and address of Court)
13        Name of Case: (Name of Judgment Creditor),
14            Judgment Creditor v.
15            (Name of Judgment Debtor),
16            Judgment Debtor.
17        Address of Judgment Debtor: (Insert last known
18            address)
19        Name and address of Attorney for Judgment
20            Creditor or of Judgment Creditor (If no
21            attorney is listed): (Insert name and address)
22        Amount of Judgment: $ (Insert amount)
23        Name of Person Receiving Citation: (Insert name)
24        Court Date and Time: (Insert return date and time
25            specified in citation)
26    NOTICE: The court has issued a citation against the person



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1named above. The citation directs that person to appear in
2court to be examined for the purpose of allowing the judgment
3creditor to discover income and assets belonging to the
4judgment debtor or in which the judgment debtor has an
5interest. The citation was issued on the basis of a judgment
6against the judgment debtor in favor of the judgment creditor
7in the amount stated above. On or after the court date stated
8above, the court may compel the application of any discovered
9income or assets toward payment on the judgment.
10    The amount of income or assets that may be applied toward
11the judgment is limited by federal and Illinois law. The
16        (1) Under Illinois or federal law, the exemptions of
17    personal property owned by the debtor include the debtor's
18    equity interest, not to exceed $4,000 in value, in any
19    personal property as chosen by the debtor; Social Security
20    and SSI benefits; public assistance benefits; unemployment
21    compensation benefits; worker's compensation benefits;
22    veteran's benefits; circuit breaker property tax relief
23    benefits; the debtor's equity interest, not to exceed
24    $2,400 in value, in any one motor vehicle, and the debtor's
25    equity interest, not to exceed $1,500 in value, in any
26    implements, professional books, or tools of the trade of



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1    the debtor.
2        (2) Under Illinois law, every person is entitled to an
3    estate in homestead, when it is owned and occupied as a
4    residence, to the extent in value of $15,000, which
5    homestead is exempt from judgment.
6        (3) Under Illinois law, the amount of wages that may be
7    applied toward a judgment is limited to the lesser of (i)
8    15% of gross weekly wages or (ii) the amount by which
9    disposable earnings for a week exceed the total of 45 times
10    the federal minimum hourly wage or, under a wage deduction
11    summons served on or after January 1, 2006, the Illinois
12    minimum hourly wage, whichever is greater.
13        (4) Under federal law, the amount of wages that may be
14    applied toward a judgment is limited to the lesser of (i)
15    25% of disposable earnings for a week or (ii) the amount by
16    which disposable earnings for a week exceed 30 times the
17    federal minimum hourly wage.
18        (5) Pension and retirement benefits and refunds may be
19    claimed as exempt under Illinois law.
20    The judgment debtor may have other possible exemptions
21under the law.
26also has the right to seek a declaration at an earlier date, by



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1notifying the clerk in writing at (insert address of clerk).
2When so notified, the Clerk of the Court will obtain a prompt
3hearing date from the court and will provide the necessary
4forms that must be prepared by the judgment debtor or the
5attorney for the judgment debtor and sent to the judgment
6creditor and the judgment creditor's attorney regarding the
7time and location of the hearing. This notice may be sent by
8regular first class mail."
10        (CASE CAPTION)
11        To Judgment Debtor: Please complete this form and bring
12    it with you to the hearing at (DATE, TIME, LOCATION). The
13    information you provide will help the court determine
14    whether you have any property or income that can be used to
15    satisfy the judgment entered against you in this matter.
16    The information you provide must be accurate to the best of
17    your knowledge.
18        If you fail to appear at this hearing, you could be
19    held in contempt of court and possibly arrested.
20        In answer to the citation and supplemental proceedings
21    served upon (INSERT NAME OF JUDGMENT DEBTOR), he or she
22    answers as follows:
23        Name:.....................
24        Home Phone Number:.................



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



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1        I own real estate at.........., with names of other
2    owners
3        .............................................................
4        Additional real estate I own:........................
5        I have a beneficial interest in a land trust. The name
6    and address of the trustee is:............. The beneficial
7    interest is listed in my name and............................
8        There is a mortgage on my real estate. State the
9    mortgage company's name and address for each parcel of real
10    estate owned:
11        .............................................................
12        An assignment of beneficial interest in the land trust
13    was signed to secure a loan from.............................
14        I have the following accounts:
15            Checking account at ..........;
16              account balance $......
17            Savings account at ..........;
18              account balance $......
19            Money market or certificate of deposit at........
20            Safe deposit box at..............................
21            Other accounts (please identify):................
22        I own:
23            A vehicle (state year, make, model, and VIN):....
24            Jewelry (please specify):........................
25        Other property described as:......................
26            Stocks/Bonds.....................



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1            Personal computer................
2            DVD player.......................
3            Television.......................
4            Stove.......................
5            Microwave.......................
6            Work tools.......................
7            Business equipment.......................
8            Farm equipment.......................
9            Other property (please specify):
10            .............................................................
11        Signature:....................
12    (c) No order to pay money shall be entered until the court
13has determined that the judgment debtor has been served with a
14citation, citation notice, and an Income and Asset Form in
15accordance with subsection (b) of this Section and has had an
16opportunity to assert exemptions, and that the source of the
17payments is non-exempt sources. When assets or income of the
18judgment debtor not exempt from the satisfaction of a judgment,
19a deduction order or garnishment are discovered, the court may,
20by appropriate order or judgment:
21        (1) Compel the judgment debtor to deliver up, to be
22    applied in satisfaction of the judgment, in whole or in
23    part, money, choses in action, property or effects in his
24    or her possession or control, so discovered, capable of
25    delivery and to which his or her title or right of
26    possession is not substantially disputed.



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



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1        (5) Compel any person cited to execute an assignment of
2    any chose in action or a conveyance of title to real or
3    personal property or resign memberships in exchanges,
4    clubs, or other entities in the same manner and to the same
5    extent as a court could do in any proceeding by a judgment
6    creditor to enforce payment of a judgment or in aid of the
7    enforcement of a judgment.
8        (6) Authorize the judgment creditor to maintain an
9    action against any person or corporation that, it appears
10    upon proof satisfactory to the court, is indebted to the
11    judgment debtor, for the recovery of the debt, forbid the
12    transfer or other disposition of the debt until an action
13    can be commenced and prosecuted to judgment, direct that
14    the papers or proof in the possession or control of the
15    debtor and necessary in the prosecution of the action be
16    delivered to the creditor or impounded in court, and
17    provide for the disposition of any moneys in excess of the
18    sum required to pay the judgment creditor's judgment and
19    costs allowed by the court.
20    (d) No order or judgment shall be entered under subsection
21(c) in favor of the judgment creditor unless there appears of
22record a certification of mailing showing that a copy of the
23citation, and a copy of the citation notice, and the Income and
24Asset Form were served upon was mailed to the judgment debtor
25as required by subsection (b).
26    (d-5) If the court determines that the judgment debtor does



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



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1    termination of the proceeding, whichever occurs first. The
2    third party may not be obliged to withhold the payment of
3    any moneys beyond double the amount of the balance due
4    sought to be enforced by the judgment creditor. The court
5    may punish any party who violates the restraining provision
6    of a citation as and for a contempt, or if the party is a
7    third party may enter judgment against him or her in the
8    amount of the unpaid portion of the judgment and costs
9    allowable under this Section, or in the amount of the value
10    of the property transferred, whichever is lesser.
11        (2) The court may enjoin any person, whether or not a
12    party to the supplementary proceeding, from making or
13    allowing any transfer or other disposition of, or
14    interference with, the property of the judgment debtor not
15    exempt from the enforcement of a judgment, a deduction
16    order or garnishment, or the property or debt not so exempt
17    concerning which any person is required to attend and be
18    examined until further direction in the premises. The
19    injunction order shall remain in effect until vacated by
20    the court or until the proceeding is terminated, whichever
21    first occurs.
22    (g) If it appears that any property, chose in action,
23credit or effect discovered, or any interest therein, is
24claimed by any person, the court shall, as in garnishment
25proceedings, permit or require the claimant to appear and
26maintain his or her right. The rights of the person cited and



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1the rights of any adverse claimant shall be asserted and
2determined pursuant to the law relating to garnishment
4    (h) Costs in proceedings authorized by this Section shall
5be allowed, assessed and paid in accordance with rules,
6provided that if the court determines, in its discretion, that
7costs incurred by the judgment creditor were improperly
8incurred, those costs shall be paid by the judgment creditor.
9    (i) This Section is in addition to and does not affect
10enforcement of judgments or proceedings supplementary thereto,
11by any other methods now or hereafter provided by law.
12    (j) This Section does not grant the power to any court to
13order installment or other payments from, or compel the sale,
14delivery, surrender, assignment or conveyance of any property
15exempt by statute from the enforcement of a judgment thereon, a
16deduction order, garnishment, attachment, sequestration,
17process or other levy or seizure.
18    (k) (Blank).
19    (k-5) If the court determines that any property held by a
20third party respondent is wages pursuant to Section 12-801, the
21court shall proceed as if a wage deduction proceeding had been
22filed and proceed to enter such necessary and proper orders as
23would have been entered in a wage deduction proceeding
24including but not limited to the granting of the statutory
25exemptions allowed by Section 12-803 and all other remedies
26allowed plaintiff and defendant pursuant to Part 8 of Article



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112 of this Act.
2    (k-10) If a creditor discovers personal property of the
3judgment debtor that is subject to the lien of a citation to
4discover assets, the creditor may have the court impress a lien
5against a specific item of personal property, including a
6beneficial interest in a land trust. The lien survives the
7termination of the citation proceedings and remains as a lien
8against the personal property in the same manner that a
9judgment lien recorded against real property pursuant to
10Section 12-101 remains a lien on real property. If the judgment
11is revived before dormancy, the lien shall remain. A lien
12against personal property may, but need not, be recorded in the
13office of the recorder or filed as an informational filing
14pursuant to the Uniform Commercial Code.
15    (l) At any citation hearing at which the judgment debtor
16appears and seeks a declaration that certain of his or her
17income or assets are exempt, the court shall proceed to
18determine whether the property which the judgment debtor
19declares to be exempt is exempt from judgment. At any time
20before the return date specified on the citation, the judgment
21debtor may request, in writing, a hearing to declare exempt
22certain income and assets by notifying the clerk of the court
23before that time, using forms as may be provided by the clerk
24of the court. The clerk of the court will obtain a prompt
25hearing date from the court and will provide the necessary
26forms that must be prepared by the judgment debtor or the



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



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1    The lien established under this Section does not affect the
2rights of citation respondents in property prior to the service
3of the citation upon them and does not affect the rights of
4bona fide purchasers or lenders without notice of the citation.
5The lien is effective for the period specified by Supreme Court
7    This subsection (m), as added by Public Act 88-48, is a
8declaration of existing law.
9    (n) If any provision of this Act or its application to any
10person or circumstance is held invalid, the invalidity of that
11provision or application does not affect the provisions or
12applications of the Act that can be given effect without the
13invalid provision or application.
14    (o) The changes to this Section made by this amendatory Act
15of the 97th General Assembly apply only to supplementary
16proceedings commenced under this Section on or after the
17effective date of this amendatory Act of the 97th General
19(Source: P.A. 97-350, eff. 1-1-12.)
20    (735 ILCS 5/12-107.5 new)
21    Sec. 12-107.5. Body attachment order.
22    (a) No order of body attachment or other civil order for
23the incarceration or detention of an individual to answer for a
24charge of indirect civil contempt shall issue unless the
25respondent has first had an opportunity, after personal service



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1or abode service of notice as provided in Section 2-203, to
2appear in court to show cause why the respondent should not be
3held in contempt.
4    (b) The notice shall be an order to show cause.
5    (c) Any order issued pursuant to subsection (a) shall
6expire 6 months after the date of issue.
7    (d) Absent good cause, the first order issued pursuant to
8subsection (a) and directed to a respondent shall be in the
9nature of a recognizance bond in the sum of no more than
11    (e) Upon discharge of any bond secured by the posting of
12funds, the funds shall be returned to the respondent or other
13party posting the bond. In no case shall the respondent be
14required to pay the funds to the plaintiff.
15    Section 99. Effective date. This Act takes effect upon
16becoming law.".