Per my earlier post – neophyte collection lawyers often wonder what they should put in the order once the citation examination concludes. Section 2-1402(c) sets forth several possible orders that can enter.
The Citation Respondent Appeared and Answered
Broadly, if the debtor appears and you conduct the examination, you can either dismiss or discharge the citation, continue it, or order a turnover of funds or property. I enter a dismissal if the debtor fully complied and has no assets, I continue the proceedings if the debtor does not produce the requested documents, and I enter a turnover order if the debtor or a third-party answers that there are funds or property that can be applied towards the judgment.
For a third-party citation, typically issued to the debtor’s bank, I enter a dismissal order which provides that the bank turnover the non-exempt funds within 7 days. If the bank fails to pay, I move for a Rule to Show Cause and entry of conditional judgment. This gets the bank’s attention.
Another possible order on the citation return date is an installment payment order which I file with the court. An example of this is found at: http://18.104.22.168/Forms/pdf_files/CCG0105.pdf.
Citation Fails to Appear
Surprisingly, debtors often fail to appear on the Citation return date. When this happens, you ask for a “Rule” – shorthand nomenclature for Rule to Show Cause. That’s also a pre-printed form found in the courtroom. You fill out the required information and have it served personally on the debtor. If the debtor fails to respond to the served Rule, you request a body attachment or “writ of attachment”. That order will contain a $1,000 bond amount (usually), and should be placed with the Sheriff, who – at some point – will contact the debtor and physically bring him/her to the courtroom.
Collection counsel should familiarize themselves with House Bill 5434 – eff. July, 2012 (http://www.ilga.gov/legislation/BillStatus.asp?DocNum=5434&GAID=11&DocTypeID=HB&LegId=65695&SessionID=84)
which added requirements specifically concerning body attachments. Basically, no body attachment will issue until creditor obtains personal or abode service of a Rule to Show Cause on the debtor, there is a maximum $1,000 bond amount, and the body attachment expires after 1 year.