Public Act 98-0557 (IL)

Public Act 98-0557 (SB 1044); Effective Date: 1/1/2014

Collection Procedures

Statutes Amended: 735 ILCS 5/2-1402 and 1602; 735 ILCS 5/12-101 and 705

Foreign Judgments

The new law allows the recording of a foreign judgment as a lien on in-state real estate of the person against whom the judgment is entered. To make the foreign judgment enforceable in Illinois, a judgment creditor needs to file one of two things with the county recorder: (1) an affidavit setting forth the name and address of a judgment debtor and a copy of the foreign judgment showing the filing in an Illinois court; or (2) a transcript of a final judgment in an Illinois court entered on an action to enforce the foreign judgment. 735 ILCS 5/12-101.

Wage Garnishments

The new law eliminates the need to file a revival action for a judgment that becomes dormant every seventh year. A judgment creditor may move forward with the collection process without having to file for revival so long as: (1) the collection is done under court supervision; and (2) the judgment includes a wage deduction order (instead of a payment or withholding) or turn over order against an employer, garnishee, or other third party respondent. 735 ILCS 5/2-1602(h).

Non-wage (Bank) Garnishments

The new law allows for a less expensive method of serving non-wage garnishments than the service by a sheriff or process server. Under the new law, non-wage garnishments may be served by certified mail as provided in Illinois Supreme Court Rules 105(b)(1)–(2). 735 ILCS 5/12-705(b).

The new law also adds a declaratory provision as clarification of the existing law. Contrary to a conflicting appellate court ruling, the court may enter garnishment orders in citation proceedings and a judgment creditor is not required to obtain a levy from the county sheriff to discover a debtor’s bank accounts and other assets. The entire collection procedures may be conducted by the use of citations. 735 ILCS 5/2-1402(k-3).

Bill Number: 
SB 1044
Public Act or Public Law Number: 
PA 98-557
By: ATG Underwriting Department | Posted on: Mon, 01/06/2014 - 11:10am