Obtaining a personal injury judgment is only part of the battle for a plaintiff. Collecting that judgment, especially when the defendant has inadequate insurance coverage, presents distinct and significant challenges. Personal injury attorneys must navigate a complex set of procedures to maximize recovery for their clients, often employing a combination of statutory remedies and practical strategies.
Personal injury defendants, particularly in auto accident cases, may carry only the minimum mandatory liability insurance required by Illinois law: $25,000 per person and $50,000 per accident. Damages can far exceed these policy limits in cases involving severe injury, catastrophic loss or wrongful death. Once the insurer tenders its policy limit, the plaintiff must collect the balance directly from the defendant.
In situations where insurance does not cover the victim’s losses, a plaintiff’s attorney can utilize various enforcement tools:
- Citation to discover assets — Under 735 ILCS 5/2-1402, the attorney can summon the defendant to court to answer questions about assets, income and property. The court may order turnover of non-exempt assets or garnish wages if the defendant is employed.
- Garnishment — A direct court order can require third parties (such as an employer or bank) to surrender money or property owed to the defendant, subject to Illinois exemptions for basic income, a primary residence and certain personal property.
- Lien procedures — Judgment liens may be placed against real property. The defendant cannot sell or refinance property without satisfying the judgment from the proceeds.
- Revival of judgments — Illinois judgments are valid for 20 years but go “dormant” after seven years. A judgment can be revived for an additional seven-year period up to a maximum of 20 years, providing extended time for collection if the defendant’s financial situation improves.
- Sheriff’s sale — The court may order non-exempt personal or real property to be seized and sold at public auction, although in practice the proceeds are often modest.
Also, the following remedies may be used against defendants who take deliberate action to evade judgments:
- Piercing the corporate veil or alter ego liability — If the defendant is a business entity, attorneys may pursue shareholders, officers or affiliates under certain circumstances, including (1) where the business is grossly undercapitalized and (2) if the shareholders commingle personal and business assets.
- Successor liability — If the defendant is a business entity, attorneys may pursue related companies owned by the same parties under circumstances likely to work a fraud upon the creditor.
- Fraudulent conveyance actions — Under the Illinois Uniform Fraudulent Transfer Act (740 ILCS 160), a plaintiff can seek to avoid transfers made by the defendant to defraud creditors.
Despite all legal tools, recovery is often limited by the defendant’s lack of non-exempt assets and income. Plaintiffs and their attorneys must weigh the likely return on collection efforts against costs involved. Settlements, structured payment agreements or accepting partial satisfaction may be practical endpoints.
Schwartz Law Group, LLC in Chicago is experienced in employing all effective legal means to obtain and collect on Illinois judgments. Call us at 312-755-3164 or contact us online to schedule an initial consultation.
