Illinois law entitles judgment creditors to initiate supplementary proceedings to discover assets or income of a judgment debtor. Judgment creditors can use this process to seek out non-exempt assets or income by examining both the judgment debtor and other individuals who may hold relevant information. The remedy is particularly useful where the debtor may have concealed assets or transferred them to third parties to avoid satisfying the judgment.
The Illinois citation statute, 735 ILCS 5/2-1402, authorizes the judgment creditor to issue citations to discover assets. A citation can include a restraining provision that prohibits the recipient from transferring, disposing of or otherwise interfering with any non-exempt property until the court issues a further order or the proceedings conclude. This restriction effectively freezes the debtor’s non-exempt assets, preventing the judgment debtor or any third party in possession of such assets from depleting or hiding resources before the judgment creditor can examine them and secure payment.
The restraining provision prevents judgment debtors from frustrating the supplementary proceedings by moving or depleting their assets, thus preserving the status quo until the court has evaluated the situation. Without this restraining provision, judgment debtors might nullify the effect of supplementary proceedings before they even begin. As such, this provision is vital in stopping potential asset dissipation and in allowing judgment creditors a fair opportunity to enforce the judgment against available non-exempt assets.
The statute’s reach is broad, allowing judgment creditors to examine multiple parties, not just the debtor, if their assets or information could serve as resources for judgment enforcement. This could include, for example, a debtor’s family members, business partners or others who may hold assets beneficial to the judgment debtor. In instances where judgment debtors have attempted to hide assets by transferring them to third parties, this statutory power enables judgment creditors to probe further.
Although 735 ILCS 5/2-1402 provides a powerful tool for judgment creditors, leveraging this statute effectively often requires the assistance of a skilled collections attorney. The process of issuing citations, utilizing restraining provisions and examining various parties to uncover assets is procedurally complex and legally nuanced. An experienced collections attorney understands how to structure citations strategically to maximize the likelihood of uncovering and securing assets. In doing so, they help judgment creditors realize the best chance of collecting the amounts owed to them.
At Schwartz Law Group, LLC in Chicago, our attorneys help judgment creditors use all tools allowed by Illinois law to carefully devise debt collection strategies. To discuss your situation, please call our office at 312-755-3164 or contact us online at your convenience.
