Sen. William R. Haine

Filed: 4/26/2012





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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. Whenever a citation is served upon
23a person or party other than the judgment debtor, the officer
24or person serving the citation shall send to the judgment
25debtor, within three business days of the service upon the
26cited party, a copy of the citation and the citation notice,



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



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



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1    estate in homestead, when it is owned and occupied as a
2    residence, to the extent in value of $15,000, which
3    homestead is exempt from judgment.
4        (3) Under Illinois law, the amount of wages that may be
5    applied toward a judgment is limited to the lesser of (i)
6    15% of gross weekly wages or (ii) the amount by which
7    disposable earnings for a week exceed the total of 45 times
8    the federal minimum hourly wage or, under a wage deduction
9    summons served on or after January 1, 2006, the Illinois
10    minimum hourly wage, whichever is greater.
11        (4) Under federal law, the amount of wages that may be
12    applied toward a judgment is limited to the lesser of (i)
13    25% of disposable earnings for a week or (ii) the amount by
14    which disposable earnings for a week exceed 30 times the
15    federal minimum hourly wage.
16        (5) Pension and retirement benefits and refunds may be
17    claimed as exempt under Illinois law.
18    The judgment debtor may have other possible exemptions
19under the law.
22judgment debtor also has the right to seek a declaration at an
23earlier date, by notifying the clerk in writing at (insert
24address of clerk). When so notified, the Clerk of the Court
25will obtain a prompt hearing date from the court and will
26provide the necessary forms that must be prepared by the



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1judgment debtor or the attorney for the judgment debtor and
2sent to the judgment creditor and the judgment creditor's
3attorney regarding the time and location of the hearing. This
4notice may be sent by regular first class mail."
5    (b-1) Any citation served upon a judgment debtor who is a
6natural person shall be served by personal service or abode
7service as provided in Supreme Court Rule 105 and shall include
8a copy of the Income and Asset Form set forth in subsection
10    (b-5) The Income and Asset Form required to be served by
11the judgment creditor in subsection (b-1) shall be in
12substantially the following form:
14        To Judgment Debtor: Please complete this form and bring
15    it with you to the hearing referenced in the enclosed
16    citation notice. You should also bring to the hearing any
17    documents you have to support the information you provide
18    in this form, such as pay stubs and account statements. The
19    information you provide will help the court determine
20    whether you have any property or income that can be used to
21    satisfy the judgment entered against you in this matter.
22    The information you provide must be accurate to the best of
23    your knowledge.
24        If you fail to appear at this hearing, you could be
25    held in contempt of court and possibly arrested.



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1        In answer to the citation and supplemental proceedings
2    served upon the judgment debtor, he or she answers as
3    follows:
4        Name:.....................
5        Home Phone Number:.................
6        Home Address:....................
7        Date of Birth:......................
8        Marital Status:.....................
9        I have.........dependents.
10        Do you have a job? YES NO
11        Company's name I work for:......................
12        Company's address:..............................
13        Job:
14            I earn $....... per.......
15            If self employed, list here your business name and
16        address:
17            .............................................................
18            Income from self employment is $......... per
19        year.
20            I have the following benefits with my employer:
21            .............................................................
22        I do not have a job, but I support myself through:
23            Government Assistance $........ per month
24            Unemployment $........ per month



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



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1            Other accounts (please identify):................
2        I own:
3            A vehicle (state year, make, model, and VIN):....
4            Jewelry (please specify):........................
5        Other property described as:......................
6            Stocks/Bonds.....................
7            Personal computer................
8            DVD player.......................
9            Television.......................
10            Stove.......................
11            Microwave.......................
12            Work tools.......................
13            Business equipment.......................
14            Farm equipment.......................
15            Other property (please specify):
16            .............................................................
17        Signature:....................
18    (b-10) Any action properly initiated under this Section may
19proceed notwithstanding an absent or incomplete Income and
20Asset Form, and a judgment debtor may be examined for the
21purpose of allowing the judgment creditor to discover income
22and assets belonging to the judgment debtor or in which the
23judgment debtor has an interest.
24    (c) When assets or income of the judgment debtor not exempt
25from the satisfaction of a judgment, a deduction order or
26garnishment are discovered, the court may, by appropriate order



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1or judgment:
2        (1) Compel the judgment debtor to deliver up, to be
3    applied in satisfaction of the judgment, in whole or in
4    part, money, choses in action, property or effects in his
5    or her possession or control, so discovered, capable of
6    delivery and to which his or her title or right of
7    possession is not substantially disputed.
8        (2) Compel the judgment debtor to pay to the judgment
9    creditor or apply on the judgment, in installments, a
10    portion of his or her income, however or whenever earned or
11    acquired, as the court may deem proper, having due regard
12    for the reasonable requirements of the judgment debtor and
13    his or her family, if dependent upon him or her, as well as
14    any payments required to be made by prior order of court or
15    under wage assignments outstanding; provided that the
16    judgment debtor shall not be compelled to pay income which
17    would be considered exempt as wages under the Wage
18    Deduction Statute. The court may modify an order for
19    installment payments, from time to time, upon application
20    of either party upon notice to the other.
21        (3) Compel any person cited, other than the judgment
22    debtor, to deliver up any assets so discovered, to be
23    applied in satisfaction of the judgment, in whole or in
24    part, when those assets are held under such circumstances
25    that in an action by the judgment debtor he or she could
26    recover them in specie or obtain a judgment for the



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1    proceeds or value thereof as for conversion or
2    embezzlement. A judgment creditor may recover a corporate
3    judgment debtor's property on behalf of the judgment debtor
4    for use of the judgment creditor by filing an appropriate
5    petition within the citation proceedings.
6        (4) Enter any order upon or judgment against the person
7    cited that could be entered in any garnishment proceeding.
8        (5) Compel any person cited to execute an assignment of
9    any chose in action or a conveyance of title to real or
10    personal property or resign memberships in exchanges,
11    clubs, or other entities in the same manner and to the same
12    extent as a court could do in any proceeding by a judgment
13    creditor to enforce payment of a judgment or in aid of the
14    enforcement of a judgment.
15        (6) Authorize the judgment creditor to maintain an
16    action against any person or corporation that, it appears
17    upon proof satisfactory to the court, is indebted to the
18    judgment debtor, for the recovery of the debt, forbid the
19    transfer or other disposition of the debt until an action
20    can be commenced and prosecuted to judgment, direct that
21    the papers or proof in the possession or control of the
22    debtor and necessary in the prosecution of the action be
23    delivered to the creditor or impounded in court, and
24    provide for the disposition of any moneys in excess of the
25    sum required to pay the judgment creditor's judgment and
26    costs allowed by the court.



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1    (c-5) If a citation is directed to a judgment debtor who is
2a natural person, no payment order shall be entered under
3subsection (c) unless the Income and Asset Form was served upon
4the judgment debtor as required by subsection (b-1), the
5judgment debtor has had an opportunity to assert exemptions,
6and the payments are from non-exempt sources.
7    (d) No order or judgment shall be entered under subsection
8(c) in favor of the judgment creditor unless there appears of
9record a certification of mailing showing that a copy of the
10citation and a copy of the citation notice was mailed to the
11judgment debtor as required by subsection (b).
12    (d-5) If upon examination the court determines that the
13judgment debtor does not possess any non-exempt income or
14assets, then the citation shall be dismissed.
15    (e) All property ordered to be delivered up shall, except
16as otherwise provided in this Section, be delivered to the
17sheriff to be collected by the sheriff or sold at public sale
18and the proceeds thereof applied towards the payment of costs
19and the satisfaction of the judgment. If the judgment debtor's
20property is of such a nature that it is not readily delivered
21up to the sheriff for public sale or if another method of sale
22is more appropriate to liquidate the property or enhance its
23value at sale, the court may order the sale of such property by
24the debtor, third party respondent, or by a selling agent other
25than the sheriff upon such terms as are just and equitable. The
26proceeds of sale, after deducting reasonable and necessary



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



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1    exempt from the enforcement of a judgment, a deduction
2    order or garnishment, or the property or debt not so exempt
3    concerning which any person is required to attend and be
4    examined until further direction in the premises. The
5    injunction order shall remain in effect until vacated by
6    the court or until the proceeding is terminated, whichever
7    first occurs.
8    (g) If it appears that any property, chose in action,
9credit or effect discovered, or any interest therein, is
10claimed by any person, the court shall, as in garnishment
11proceedings, permit or require the claimant to appear and
12maintain his or her right. The rights of the person cited and
13the rights of any adverse claimant shall be asserted and
14determined pursuant to the law relating to garnishment
16    (h) Costs in proceedings authorized by this Section shall
17be allowed, assessed and paid in accordance with rules,
18provided that if the court determines, in its discretion, that
19costs incurred by the judgment creditor were improperly
20incurred, those costs shall be paid by the judgment creditor.
21    (i) This Section is in addition to and does not affect
22enforcement of judgments or proceedings supplementary thereto,
23by any other methods now or hereafter provided by law.
24    (j) This Section does not grant the power to any court to
25order installment or other payments from, or compel the sale,
26delivery, surrender, assignment or conveyance of any property



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1exempt by statute from the enforcement of a judgment thereon, a
2deduction order, garnishment, attachment, sequestration,
3process or other levy or seizure.
4    (k) (Blank).
5    (k-5) If the court determines that any property held by a
6third party respondent is wages pursuant to Section 12-801, the
7court shall proceed as if a wage deduction proceeding had been
8filed and proceed to enter such necessary and proper orders as
9would have been entered in a wage deduction proceeding
10including but not limited to the granting of the statutory
11exemptions allowed by Section 12-803 and all other remedies
12allowed plaintiff and defendant pursuant to Part 8 of Article
1312 of this Act.
14    (k-10) If a creditor discovers personal property of the
15judgment debtor that is subject to the lien of a citation to
16discover assets, the creditor may have the court impress a lien
17against a specific item of personal property, including a
18beneficial interest in a land trust. The lien survives the
19termination of the citation proceedings and remains as a lien
20against the personal property in the same manner that a
21judgment lien recorded against real property pursuant to
22Section 12-101 remains a lien on real property. If the judgment
23is revived before dormancy, the lien shall remain. A lien
24against personal property may, but need not, be recorded in the
25office of the recorder or filed as an informational filing
26pursuant to the Uniform Commercial Code.



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



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1        (1) When the citation is directed against the judgment
2    debtor, upon all personal property belonging to the
3    judgment debtor in the possession or control of the
4    judgment debtor or which may thereafter be acquired or come
5    due to the judgment debtor to the time of the disposition
6    of the citation.
7        (2) When the citation is directed against a third
8    party, upon all personal property belonging to the judgment
9    debtor in the possession or control of the third party or
10    which thereafter may be acquired or come due the judgment
11    debtor and comes into the possession or control of the
12    third party to the time of the disposition of the citation.
13    The lien established under this Section does not affect the
14rights of citation respondents in property prior to the service
15of the citation upon them and does not affect the rights of
16bona fide purchasers or lenders without notice of the citation.
17The lien is effective for the period specified by Supreme Court
19    This subsection (m), as added by Public Act 88-48, is a
20declaration of existing law.
21    (n) If any provision of this Act or its application to any
22person or circumstance is held invalid, the invalidity of that
23provision or application does not affect the provisions or
24applications of the Act that can be given effect without the
25invalid provision or application.
26    (o) The changes to this Section made by this amendatory Act



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1of the 97th General Assembly apply only to supplementary
2proceedings commenced under this Section on or after the
3effective date of this amendatory Act of the 97th General
5(Source: P.A. 97-350, eff. 1-1-12.)
6    (735 ILCS 5/12-107.5 new)
7    Sec. 12-107.5. Body attachment order.
8    (a) No order of body attachment or other civil order for
9the incarceration or detention of a natural person respondent
10to answer for a charge of indirect civil contempt shall issue
11unless the respondent has first had an opportunity, after
12personal service or abode service of notice as provided in
13Supreme Court Rule 105, to appear in court to show cause why
14the respondent should not be held in contempt.
15    (b) The notice shall be an order to show cause.
16    (c) Any order issued pursuant to subsection (a) shall
17expire one year after the date of issue.
18    (d) The first order issued pursuant to subsection (a) and
19directed to a respondent may be in the nature of a recognizance
20bond in the sum of no more than $1,000.
21    (e) Upon discharge of any bond secured by the posting of
22funds, the funds shall be returned to the respondent or other
23party posting the bond, less applicable fees, unless the court
24after inquiry determines that: (1) the judgment debtor
25willfully has refused to comply with a payment order entered in



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1accordance with Section 2-1402 or an otherwise validly entered
2order; (2) the bond money belongs to the debtor as opposed to a
3third party; and (3) that any part of the funds constitute
4non-exempt funds of the judgment debtor, in which case the
5court may cause the non-exempt portion of the funds to be paid
6over to the judgment creditor.
7    Section 97. Severability. The provisions of this Act are
8severable under Section 1.31 of the Statute on Statutes.
9    Section 99. Effective date. This Act takes effect upon
10becoming law.".