Banks and their commercial customers often enter loan agreements which give the bank the right to set-off or “swipe” the customer’s account if the customer defaults on a loan. The boilerplate loan documents will typically list as a default event, a judgment creditor of the customer attempting to attach the account funds. The loan and security agreement will also give …
Category Archives: Post-judgment – Collections
Defendant Bank Not Liable for Permitting Judgment Debtor to Transfer Over $700,000 from Accounts
The Citation to Discover Assets to a Third Party or “third-party citation” allows a judgment creditor to serve a citation on a third-party – a bank, for instance – who holds property of the judgment debtor and attach that property until the court orders the property released. See 735 ILCS 5/2-1402(f)(1). The third-party citation prohibits the citation …
Judgments By Confession: How to Open (Not Vacate) Them (IL Law)
The two key rules that govern challenging a confessed judgment in Illinois are Supreme Court Rule 276 and Code Section 2-1301 (735 ILCS 5/2-1301). The latter provides that “any person for a debt bona fide due may confess judgment by himself or herself or attorney duly authorized, without process” and that the “application to confess judgment shall …
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