Citation to discover assets in Illinois: what it does and how creditors use it.
The enforcement tool Illinois judgment creditors use most, explained in the questions creditors actually ask.
What is a citation to discover assets?
A citation to discover assets is the primary post-judgment enforcement tool in Illinois. Authorized by 735 ILCS 5/2-1402 and Illinois Supreme Court Rule 277, it is a court-issued document served on a judgment debtor or a third party that requires them to appear and disclose, under oath, assets and income that could be used to pay the judgment.
What happens when a citation is served on the debtor?
Two things. First, the debtor must appear on the return date and answer questions about bank accounts, income, receivables, vehicles, real estate, and other property, and must produce the documents the citation lists. Second, service of the citation creates a lien on the debtor’s non-exempt personal property and prohibits the debtor from transferring or disposing of it until the court rules. Violating that prohibition can result in contempt.
What happens when a citation is served on a bank?
A third-party citation served on a bank requires the bank to freeze the debtor’s non-exempt funds on deposit and report what it holds. The creditor then asks the court for a turnover order directing the bank to pay those funds toward the judgment. Banks are familiar with the process and comply routinely.
Who else can be served with a third-party citation?
Anyone who holds property of the debtor or owes the debtor money: customers of a business debtor, a title company holding sale proceeds, a tenant paying the debtor rent, a brokerage. For a business debtor, its own receivables are often the most productive target.
What assets are exempt?
For individual debtors, Illinois exempts certain property, a portion of wages, a homestead exemption in a residence, a “wildcard” exemption, retirement accounts, and others (735 ILCS 5/12-1001). Business entities have no personal exemptions. We account for exemptions in deciding which assets to pursue.
How long does it take?
The citation is issued by the clerk after judgment and served by the sheriff or a special process server. The return date is typically a few weeks out. If the debtor appears and discloses assets, turnover motions follow within weeks. If the debtor fails to appear, we move for a rule to show cause, which can lead to a body attachment order. Timelines vary by county and courtroom.
Can a citation be used on an arbitration award or a judgment from another state?
Yes, once the award is confirmed as a judgment or the out-of-state judgment is registered in Illinois under the Uniform Enforcement of Foreign Judgments Act.
How do we use citations?
Methodically. The debtor citation goes out as soon as the judgment is entered. What we learn at the examination drives the next round: third-party citations to each bank and payor identified, then turnover motions. Every step is calendared, and you see the sequence in your reporting access.