SB2220 103RD GENERAL ASSEMBLY

LRB103 27841 LNS 54219 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2220

Introduced 2/10/2023, by Sen. Robert F. Martwick

SYNOPSIS AS INTRODUCED:

See Index

Amends the Code of Civil Procedure. Requires a summons issued in an action to collect a debt to include a separate notice containing specified language. Provides that the amount of wages that may be applied toward a judgment is limited to the lesser of 10% (rather than 15%) of gross weekly wages or the amount by which disposable earnings for a week exceed the total of 80 (rather than 45) times the State minimum hourly wage or the federal minimum hourly wage, whichever is greater. Provides that the amount of payment owed to or received by the judgment debtor under an independent contractor relationship that may be applied toward a judgment is limited to the lesser of 10% of gross weekly wages or the amount by which disposable earnings for a week exceed the total of 100 times the State minimum hourly wage or the federal minimum hourly wage, whichever is greater. Provides that when assets or income of the judgment debtor not exempt from the satisfaction of a judgment, deduction order, or garnishment are discovered, the court may order the unfreezing or return of wages or assets to the debtor under specified circumstances. Provides that a consumer debt judgment may not (rather than may) be revived and shall expire after 7 years from the date of entry. Provides that every individual is entitled to an estate of homestead to the extent in value of the modern homestead exemption (rather than $15,000) as applied to his or her interest in specified property. Defines "modern homestead exemption" as the greater of $260,000 and the most recently available median sales price of a home in the debtor's metropolitan statistical area or county. Expands the list of personal property that is exempt from judgment, attachment, or distress for rent, including an increase in the value of the property. Provides that with respect to any consumer debt judgment, no person or entity may recover interest accumulated on any indebtedness that the person or entity knew or should have known the cause of action accrued, if an action on that indebtedness is not brought within 5 years after the cause of action accrued. Makes conforming and other changes in the Act and the Illinois Wage Assignment Act.

A BILL FOR

AN ACT concerning civil law.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Code of Civil Procedure is amended by changing Sections 2-1402, 2-1602, 12-803, 12-901, 12-904, 12-906, 12-909, 12-910, 12-911, 12-912, 12-1001, and 13-206 and by adding Section 2-201.5 as follows:

(735 ILCS 5/2-201.5 new)

Sec. 2-201.5. Debtor notice.

(a) A summons issued in an action to collect a debt shall include a separate notice containing the following language printed prominently in large font:

"IF YOU OWE A DEBT, YOU MAY BE ABLE TO PROTECT:

Your Social Security

Your SSI

Your Public Benefits including EITC and Child Tax Credit Stimulus Payments

Your Veterans Benefits

Your Retirement Benefits

$25,000 in Equity in a Motor Vehicle

At least $260,000 In Equity in your Home

Up to $15,000 in your Bank Accounts

YOU MAY BE ABLE TO STOP:

Phone Calls from Debt Collectors

Verbal Abuse from Debt Collector

Threats from Debt Collectors

YOU MAY:

Request to Have the Court Review Any Agreement to Settle Your Case

Ask for a Reasonable Payment Plan

Consult with an Attorney of Your Choice to Determine Your Rights"

(b) The clerk of the court, in consultation with civil legal service providers who service the applicable judicial circuit, shall compile a list of civil legal service providers, including their addresses and telephone numbers, and make the list available to the public. The notice in subsection (a) shall include the list of civil legal service providers compiled by the clerk of the court.

(c) The clerk of the court shall cause the notice in subsection (a) to be posted in courtrooms or in the hallway in front of courtrooms and be available for distribution in all courtrooms hearing cases involving debt collection matters.

(735 ILCS 5/2-1402) (from Ch. 110, par. 2-1402)

Sec. 2-1402. Citations to discover assets.

(a) A judgment creditor, or his or her successor in interest when that interest is made to appear of record, is entitled to prosecute citations to discover assets for the purposes of examining the judgment debtor or any other person to discover assets or income of the debtor not exempt from the enforcement of the judgment, a deduction order or garnishment, and of compelling the application of non-exempt assets or income discovered toward the payment of the amount due under the judgment. A citation proceeding shall be commenced by the service of a citation issued by the clerk. The procedure for conducting citation proceedings shall be prescribed by rules. All citations issued by the clerk shall have the following language, or language substantially similar thereto, stated prominently on the front, in capital letters: "IF YOU FAIL TO APPEAR IN COURT AS DIRECTED IN THIS NOTICE, YOU MAY BE ARRESTED AND BROUGHT BEFORE THE COURT TO ANSWER TO A CHARGE OF CONTEMPT OF COURT, WHICH MAY BE PUNISHABLE BY IMPRISONMENT IN THE COUNTY JAIL." The court shall not grant a continuance of the citation proceeding except upon good cause shown.

(b) Any citation served upon a judgment debtor or any other person shall include a certification by the attorney for the judgment creditor or the judgment creditor setting forth the amount of the judgment, the date of the judgment, or its revival date, the balance due thereon, the name of the court, and the number of the case, and a copy of the citation notice required by this subsection. Whenever a citation is served upon a person or party other than the judgment debtor, the officer or person serving the citation shall send to the judgment debtor, within three business days of the service upon the cited party, a copy of the citation and the citation notice, which may be sent by regular first-class mail to the judgment debtor's last known address. In no event shall a citation hearing be held sooner than five business days after the mailing of the citation and citation notice to the judgment debtor, except by agreement of the parties. The citation notice need not be mailed to a corporation, partnership, or association. The citation notice shall be in substantially the following form:

"CITATION NOTICE

(Name and address of Court)

Name of Case: (Name of Judgment Creditor),

Judgment Creditor v.

(Name of Judgment Debtor),

Judgment Debtor.

Address of Judgment Debtor: (Insert last known

address)

Name and address of Attorney for Judgment

Creditor or of Judgment Creditor (If no

attorney is listed): (Insert name, and address, email address, and phone number)

Amount of Judgment: $ (Insert amount)

Name of Person Receiving Citation: (Insert name)

Court Date and Time: (Insert return date and time

specified in citation)

NOTICE: The court has issued a citation against the person named above. The citation directs that person to appear in court to be examined for the purpose of allowing the judgment creditor to discover income and assets belonging to the judgment debtor or in which the judgment debtor has an interest. The citation was issued on the basis of a judgment against the judgment debtor in favor of the judgment creditor in the amount stated above. On or after the court date stated above, the court may compel the application of any discovered income or assets toward payment on the judgment.

The amount of income or assets that may be applied toward the judgment is limited by federal and Illinois law. The JUDGMENT DEBTOR HAS THE RIGHT TO ASSERT STATUTORY EXEMPTIONS AGAINST CERTAIN INCOME OR ASSETS OF THE JUDGMENT DEBTOR BY RESPONDING TO THIS CITATION OR ATTENDING THE COURT HEARING AT THE DATE AND TIME ABOVE. INCOME OF ASSETS THE DEBTOR EXEMPTS OR WHICH ARE EXEMPT BY LAW WHICH MAY NOT BE USED TO SATISFY THE JUDGMENT IN THE AMOUNT STATED ABOVE:

(1) Under Illinois or federal law, the exemptions of personal property owned by the debtor include, but are not limited to, the debtor's equity interest, not to exceed $4,000 in value, in any personal property as chosen by the debtor; Social Security and SSI benefits; public assistance benefits; unemployment compensation benefits; worker's compensation benefits; veteran's benefits; circuit breaker property tax relief benefits; the debtor's equity interest, not to exceed $25,000 $2,400 in value, in any one motor vehicle; , and the debtor's equity interest, not to exceed $7,500 $1,500 in value, in any implements, professional books, or tools of the trade of the debtor; and the debtor's equity interest, not to exceed $5,000 in any household good.

(2) Under Illinois law, every person is entitled to an estate in homestead, when it is owned and occupied as a residence, to the extent in value of the modern homestead exemption, at least $260,000 $15,000, which homestead is exempt from judgment.

(3) Under Illinois law, the amount of wages that may be applied toward a judgment is limited to the lesser of (i) 10% 15% of gross weekly wages or (ii) the amount by which disposable earnings for a week exceed the total of 80 45 times the State minimum hourly wage or the federal minimum hourly wage or, under a wage deduction summons served on or after January 1, 2006, the Illinois minimum hourly wage, whichever is greater.

(3.5) Under State law, the amount of payment owed to or received by the judgment debtor pursuant to an independent contractor relationship that may be applied toward a judgment is limited to the lesser of (i) 10% of gross weekly wages or (ii) the amount by which disposable earnings for a week exceed the total of 100 times the State minimum hourly wage or the federal minimum hourly wage, whichever is greater.

(4) Under federal law, the amount of wages that may be applied toward a judgment is limited to the lesser of (i) 25% of disposable earnings for a week or (ii) the amount by which disposable earnings for a week exceed 30 times the federal minimum hourly wage.

(5) Pension and retirement benefits and refunds may be claimed as exempt under Illinois law.

The judgment debtor may have other possible exemptions under the law.

THE JUDGMENT DEBTOR HAS THE RIGHT AT THE CITATION HEARING TO DECLARE EXEMPT CERTAIN INCOME OR ASSETS OR BOTH. The judgment debtor also has the right to seek a declaration at an earlier date, by notifying the clerk in writing at (insert address of clerk). When so notified, the Clerk of the Court will obtain a prompt hearing date from the court and will provide the necessary forms that must be prepared by the judgment debtor or the attorney for the judgment debtor and sent to the judgment creditor and the judgment creditor's attorney regarding the time and location of the hearing. This notice may be sent by regular first class mail."

(b-1) Any citation served upon a judgment debtor who is a natural person shall be served by personal service or abode service as provided in Supreme Court Rule 105 and shall include a copy of the Income and Asset Form set forth in subsection (b-5).

(b-5) The Income and Asset Form required to be served by the judgment creditor in subsection (b-1) shall be in substantially the following form:

INCOME AND ASSET FORM

To Judgment Debtor: Please complete this form and bring it with you to the hearing referenced in the enclosed citation notice. You should also bring to the hearing any documents you have to support the information you provide in this form, such as pay stubs and account statements. The information you provide will help the court determine whether you have any property or income that can be used to satisfy the judgment entered against you in this matter. The information you provide must be accurate to the best of your knowledge.

If you fail to appear at this hearing, you could be held in contempt of court and possibly arrested.

In answer to the citation proceedings served upon the judgment debtor, he or she answers as follows:

Name:.....................

Home Phone Number:.................

Home Address:....................

Date of Birth:......................

Marital Status:.....................

I have.........dependents.

Do you have a job? YES NO

Company's name I work for:......................

Company's address:..............................

Job:

I earn $....... per.......

If self employed, list here your business name and address:

.............................................

Income from self employment is $......... per year.

I have the following benefits with my employer:

.............................................

I do not have a job, but I support myself through:

Government Assistance $........ per month

Unemployment $........ per month

Social Security $........ per month

SSI $........ per month

Pension $........ per month

Other $........ per month

Real Estate:

Do you own any real estate? YES NO

I own real estate at.........., with names of other owners

.................................................

Additional real estate I own:....................

I have a beneficial interest in a land trust. The name and address of the trustee is:............. The beneficial interest is listed in my name and........................

There is a mortgage on my real estate. State the mortgage company's name and address for each parcel of real estate owned:

.................................................

An assignment of beneficial interest in the land trust was signed to secure a loan from.........................

I have the following accounts:

Checking account at ..........;

account balance $......

Savings account at ..........;

account balance $......

Money market or certificate of deposit at....

Safe deposit box at..........................

Other accounts (please identify):............

I own:

A vehicle (state year, make, model, and VIN):.

Jewelry (please specify):....................

Other property described as:......................

Stocks/Bonds.....................

Personal computer................

DVD player.......................

Television.......................

Stove.......................

Microwave.......................

Work tools.......................

Business equipment.......................

Farm equipment.......................

Other property (please specify):

.............................................

Signature:....................

(b-10) Any action properly initiated under this Section may proceed notwithstanding an absent or incomplete Income and Asset Form, and a judgment debtor may be examined for the purpose of allowing the judgment creditor to discover income and assets belonging to the judgment debtor or in which the judgment debtor has an interest.

(c) When assets or income of the judgment debtor not exempt from the satisfaction of a judgment, a deduction order or garnishment are discovered, the court may, by appropriate order or judgment:

(1) Compel the judgment debtor to deliver up, to be applied in satisfaction of the judgment, in whole or in part, money, choses in action, property or effects in his or her possession or control, so discovered, capable of delivery and to which his or her title or right of possession is not substantially disputed.

(2) Compel the judgment debtor to pay to the judgment creditor or apply on the judgment, in installments, a portion of his or her income, however or whenever earned or acquired, as the court may deem proper, having due regard for the reasonable requirements of the judgment debtor and his or her family, if dependent upon him or her, as well as any payments required to be made by prior order of court or under wage assignments outstanding; provided that the judgment debtor shall not be compelled to pay income which would be considered exempt as wages under the Wage Deduction Statute. The court may modify an order for installment payments, from time to time, upon application of either party upon notice to the other.

(3) Compel any person cited, other than the judgment debtor, to deliver up any assets so discovered, to be applied in satisfaction of the judgment, in whole or in part, when those assets are held under such circumstances that in an action by the judgment debtor he or she could recover them in specie or obtain a judgment for the proceeds or value thereof as for conversion or embezzlement. A judgment creditor may recover a corporate judgment debtor's property on behalf of the judgment debtor for use of the judgment creditor by filing an appropriate petition within the citation proceedings.

(4) Enter any order upon or judgment against the person cited that could be entered in any garnishment proceeding.

(5) Compel any person cited to execute an assignment of any chose in action or a conveyance of title to real or personal property or resign memberships in exchanges, clubs, or other entities in the same manner and to the same extent as a court could do in any proceeding by a judgment creditor to enforce payment of a judgment or in aid of the enforcement of a judgment.

(6) Authorize the judgment creditor to maintain an action against any person or corporation that, it appears upon proof satisfactory to the court, is indebted to the judgment debtor, for the recovery of the debt, forbid the transfer or other disposition of the debt until an action can be commenced and prosecuted to judgment, direct that the papers or proof in the possession or control of the debtor and necessary in the prosecution of the action be delivered to the creditor or impounded in court, and provide for the disposition of any moneys in excess of the sum required to pay the judgment creditor's judgment and costs allowed by the court.

(7) Order the unfreezing or return of wages or assets to the debtor if the debtor demonstrates that: (i) wages or assets that were frozen or garnished did not belong to the debtor at the time of garnishment, (ii) wages or assets that were frozen or garnished would have been exempt had the debtor asserted the debtor's exemptions, (iii) the underlying judgment is stayed or vacated, or (iv) the wages or assets should otherwise not have been garnished.

(c-5) If a citation is directed to a judgment debtor who is a natural person, no payment order shall be entered under subsection (c) unless the Income and Asset Form was served upon the judgment debtor as required by subsection (b-1), the judgment debtor has had an opportunity to assert exemptions, and the payments are from non-exempt sources.

(d) No order or judgment shall be entered under subsection (c) in favor of the judgment creditor unless there appears of record a certification of mailing showing that a copy of the citation and a copy of the citation notice was mailed to the judgment debtor as required by subsection (b).

(d-5) If upon examination the court determines that the judgment debtor does not possess any non-exempt income or assets, then the citation shall be dismissed.

(e) All property ordered to be delivered up shall, except as otherwise provided in this Section, be delivered to the sheriff to be collected by the sheriff or sold at public sale and the proceeds thereof applied towards the payment of costs and the satisfaction of the judgment. If the judgment debtor's property is of such a nature that it is not readily delivered up to the sheriff for public sale or if another method of sale is more appropriate to liquidate the property or enhance its value at sale, the court may order the sale of such property by the debtor, third party respondent, or by a selling agent other than the sheriff upon such terms as are just and equitable. The proceeds of sale, after deducting reasonable and necessary expenses, are to be turned over to the creditor and applied to the balance due on the judgment.

(f)(1) The citation may prohibit the party to whom it is directed from making or allowing any transfer or other disposition of, or interfering with, any property not exempt from the enforcement of a judgment therefrom, a deduction order or garnishment, belonging to the judgment debtor or to which he or she may be entitled or which may thereafter be acquired by or become due to him or her, and from paying over or otherwise disposing of any moneys not so exempt which are due or to become due to the judgment debtor, until the further order of the court or the termination of the proceeding, whichever occurs first. The third party may not be obliged to withhold the payment of any moneys beyond double the amount of the balance due sought to be enforced by the judgment creditor. The court may punish any party who violates the restraining provision of a citation as and for a contempt, or if the party is a third party may enter judgment against him or her in the amount of the unpaid portion of the judgment and costs allowable under this Section, or in the amount of the value of the property transferred, whichever is lesser.

(2) The court may enjoin any person, whether or not a party to the citation proceeding, from making or allowing any transfer or other disposition of, or interference with, the property of the judgment debtor not exempt from the enforcement of a judgment, a deduction order or garnishment, or the property or debt not so exempt concerning which any person is required to attend and be examined until further direction in the premises. The injunction order shall remain in effect until vacated by the court or until the proceeding is terminated, whichever first occurs.

(g) If it appears that any property, chose in action, credit or effect discovered, or any interest therein, is claimed by any person, the court shall, as in garnishment proceedings, permit or require the claimant to appear and maintain his or her right. The rights of the person cited and the rights of any adverse claimant shall be asserted and determined pursuant to the law relating to garnishment proceedings.

(h) Costs in proceedings authorized by this Section shall be allowed, assessed and paid in accordance with rules, provided that if the court determines, in its discretion, that costs incurred by the judgment creditor were improperly incurred, those costs shall be paid by the judgment creditor.

(i) This Section is in addition to and does not affect enforcement of judgments or citation proceedings thereto, by any other methods now or hereafter provided by law.

(j) This Section does not grant the power to any court to order installment or other payments from, or compel the sale, delivery, surrender, assignment or conveyance of any property exempt by statute from the enforcement of a judgment thereon, a deduction order, garnishment, attachment, sequestration, process or other levy or seizure.

(k) (Blank).

(k-3) The court may enter any order upon or judgment against the respondent cited that could be entered in any garnishment proceeding under Part 7 of Article XII of this Code. This subsection (k-3) shall be construed as being declarative of existing law and not as a new enactment.

(k-5) If, after proper notice to the respondent, the court determines that any property held by a third party respondent is wages pursuant to Section 12-801, the court shall proceed as if a wage deduction proceeding had been filed and proceed to enter such necessary and proper orders as would have been entered in a wage deduction proceeding including but not limited to the granting of the statutory exemptions allowed by Section 12-803 and all other remedies allowed plaintiff and defendant pursuant to Part 8 of Article 12 of this Act.

(k-10) If a creditor discovers personal property of the judgment debtor that is subject to the lien of a citation to discover assets, the creditor may have the court impress a lien against a specific item of personal property, including a beneficial interest in a land trust. The lien survives the termination of the citation proceedings and remains as a lien against the personal property in the same manner that a judgment lien recorded against real property pursuant to Section 12-101 remains a lien on real property. If the judgment is revived before dormancy, the lien shall remain. A lien against personal property may, but need not, be recorded in the office of the recorder or filed as an informational filing pursuant to the Uniform Commercial Code.

(l) At any citation hearing at which the judgment debtor appears and seeks a declaration that certain of his or her income or assets are exempt, the court shall proceed to determine whether the property which the judgment debtor declares to be exempt is exempt from judgment. At any time before the return date specified on the citation, the judgment debtor may request, in writing, a hearing to declare exempt certain income and assets by notifying the clerk of the court before that time, using forms as may be provided by the clerk of the court. The clerk of the court will obtain a prompt hearing date from the court and will provide the necessary forms that must be prepared by the judgment debtor or the attorney for the judgment debtor and sent to the judgment creditor, or the judgment creditor's attorney, regarding the time and location of the hearing. This notice may be sent by regular first class mail. At the hearing, the court shall immediately, unless for good cause shown that the hearing is to be continued, shall proceed to determine whether the property which the judgment debtor declares to be exempt is exempt from judgment. The restraining provisions of subsection (f) shall not apply to any property determined by the court to be exempt.

(m) The judgment or balance due on the judgment becomes a lien when a citation is served in accordance with subsection (a) of this Section. The lien binds nonexempt personal property, including money, choses in action, and effects of the judgment debtor as follows:

(1) When the citation is directed against the judgment debtor, upon all personal property belonging to the judgment debtor in the possession or control of the judgment debtor or which may thereafter be acquired or come due to the judgment debtor to the time of the disposition of the citation.

(2) When the citation is directed against a third party, upon all personal property belonging to the judgment debtor in the possession or control of the third party or which thereafter may be acquired or come due the judgment debtor and comes into the possession or control of the third party to the time of the disposition of the citation.

The lien established under this Section does not affect the rights of citation respondents in property prior to the service of the citation upon them and does not affect the rights of bona fide purchasers or lenders without notice of the citation. The lien is effective for the period specified by Supreme Court Rule.

This subsection (m), as added by Public Act 88-48, is a declaration of existing law.

(n) If any provision of this Act or its application to any person or circumstance is held invalid, the invalidity of that provision or application does not affect the provisions or applications of the Act that can be given effect without the invalid provision or application.

(o) The changes to this Section made by this amendatory Act of the 97th General Assembly apply only to citation proceedings commenced under this Section on or after the effective date of this amendatory Act of the 97th General Assembly. The requirements or limitations set forth in subsections (b-1), (b-5), (b-10), (c-5), and (d-5) do not apply to the enforcement of any order or judgment resulting from an adjudication of a municipal ordinance violation that is subject to Supreme Court Rules 570 through 579, or from an administrative adjudication of such an ordinance violation.

(Source: P.A. 101-191, eff. 8-2-19.)

(735 ILCS 5/2-1602)

Sec. 2-1602. Revival of judgment.

(a) Except as provided in subsection (a-5), a judgment may be revived by filing a petition to revive the judgment in the seventh year after its entry, or in the seventh year after its last revival, or in the twentieth year after its entry, or at any other time within 20 years after its entry if the judgment becomes dormant and by serving the petition and entering a court order for revival as provided in the following subsections. The provisions of this amendatory Act of the 96th General Assembly are declarative of existing law.

(a-5) A consumer debt judgment as defined in subsection (b) of Section 2-1303 may not be revived and shall expire after 7 years from the date of entry by filing a petition to revive the consumer debt judgment no later than 10 years after its entry and by serving the petition and entering a court order for revival as provided in this Section.

(b) A petition to revive a judgment shall be filed in the original case in which the judgment was entered. The petition shall include a statement as to the original date and amount of the judgment, court costs expended, accrued interest, and credits to the judgment, if any.

(c) Service of notice of the petition to revive a judgment shall be made in accordance with Supreme Court Rule 106.

(d) An order reviving a judgment shall be for the original amount of the judgment. The plaintiff may recover interest and court costs from the date of the original judgment. Credits to the judgment shall be reflected by the plaintiff in supplemental proceedings or execution.

(e) If a judgment debtor has filed for protection under the United States Bankruptcy Code and failed to successfully adjudicate and remove a lien filed by a judgment creditor, then the judgment may be revived only as to the property to which a lien attached before the filing of the bankruptcy action.

(f) A judgment may be revived as to fewer than all judgment debtors, and such order for revival of judgment shall be final, appealable, and enforceable.

(g) This Section does not apply to a child support judgment or to a judgment recovered in an action for damages for an injury described in Section 13-214.1, which need not be revived as provided in this Section and which may be enforced at any time as provided in Section 12-108.

(h) If a judgment becomes dormant during the pendency of an enforcement proceeding against wages under Part 14 of this Article or under Article XII, the enforcement may continue to conclusion without revival of the underlying judgment so long as the enforcement is done under court supervision and includes a wage deduction order or turn over order and is against an employer, garnishee, or other third party respondent.

(Source: P.A. 101-168, eff. 1-1-20.)

(735 ILCS 5/12-803) (from Ch. 110, par. 12-803)

Sec. 12-803. Wages subject to collection.

(a) The wages, salary, commissions, and bonuses subject to collection under a deduction order, for any work week shall be the lesser of:

(1) 10% 15% of such gross amount paid for that week; or

(2) the amount by which disposable earnings for a week exceed 80 45 times the Federal Minimum Hourly Wage prescribed by Section 206(a)(1) of Title 29 of the United States Code, as amended, or, under a wage deduction summons served on or after January 1, 2006, the minimum hourly wage prescribed by Section 4 of the Minimum Wage Law, whichever is greater, in effect at the time the amounts are payable.

(b) Payments owed to or received by the judgment debtor pursuant to an independent contractor relationship that are subject to collection are limited to the lesser of (i) 10% of gross weekly wages or (ii) the amount by which disposable earnings for a week exceed the total of 100 times the State minimum hourly wage or the federal minimum hourly wage, whichever is greater.

(c) This Section provision (and no other) applies irrespective of the place where the compensation was earned or payable and the State where the employee resides. No amounts required by law to be withheld may be taken from other amounts the amount collected by the creditor. The term "disposable earnings" means that part of the earnings of any individual remaining after (i) the deduction from those earnings of any amounts required by law to be withheld and (ii) any deductions related to employment, retirement, or health, including, but not limited to, deductions for health, vision, and dental insurance, deductions for transportation, required work uniforms, retirement account related deductions, flexible spending account deductions, and health savings account deductions.

(c) The Secretary of Financial and Professional Regulation is authorized and empowered to adopt rules consistent with this Section that define the terms used in this Section and as may be necessary and appropriate to interpret, implement, and enforce this Section.

(Source: P.A. 94-306, eff. 1-1-06; 95-661, eff. 1-1-08.)

(735 ILCS 5/12-901) (from Ch. 110, par. 12-901)

Sec. 12-901. Amount. Every individual is entitled to an estate of homestead to the extent in value of the modern homestead exemption as applied to $15,000 of his or her interest in a farm or lot of land and buildings thereon, a condominium, or personal property, owned or rightly possessed by lease or otherwise and occupied by him or her as a residence, or in a cooperative that owns property that the individual uses as a residence. That homestead and all right in and title to that homestead is exempt from attachment, judgment, levy, or judgment sale for the payment of his or her debts or other purposes. That homestead is also exempt and from the laws of conveyance, descent, and legacy, except as provided in this Code or in Section 20-6 of the Probate Act of 1975. This Section is not applicable between joint tenants or tenants in common but it is applicable as to any creditors of those persons. As used in this Code, "modern homestead exemption" means the greater of $260,000 and the most recently available median sales price of a home in the debtor's metropolitan statistical area or county. If 2 or more individuals own property that is exempt as a homestead, the value of the exemption of each individual may not exceed his or her proportionate share of $600,000 or the modern homestead exemption, whichever is greater, $30,000 based upon percentage of ownership. The modern homestead exemption protection provided under this Section applies to all such exemptions for the estate of homesteads available under State law, including, but not limited to, those referenced in this Section and Sections 12-901, 12-904, 12-906, 12-909, 12-910, 12-911, and 12-912. The metropolitan statistical area median sales price shall be derived from any reasonably reliable data source, including any State or federal agency, or a reasonably credible private source including, but not limited to, an Illinois-based statewide real estate association. If values from different reasonably reliable sources of data differ, the largest value shall apply. The Secretary of Financial and Professional Regulation is authorized and empowered to adopt rules consistent with this Section that define the terms used in this Section and designate reasonably reliable data sources as may be necessary and appropriate to interpret, and, implement this Section.

(Source: P.A. 94-293, eff. 1-1-06.)

(735 ILCS 5/12-904) (from Ch. 110, par. 12-904)

Sec. 12-904. Release, waiver or conveyance. No release, waiver or conveyance of the estate so exempted shall be valid, unless the same is in writing, signed by the individual and his or her spouse, if he or she have one, or possession is abandoned or given pursuant to the conveyance; or if the exception is continued to a child or children without the order of a court directing a release thereof; but if a conveyance is made by an individual as grantor to his or her spouse, such conveyance shall be effectual to pass the title expressed therein to be conveyed thereby, whether or not the grantor in such conveyance is joined therein by his or her spouse. In any case where such release, waiver or conveyance is taken by way of mortgage or security, the same shall only be operative as to such specific release, waiver or conveyance; and when the same includes different pieces of land, or the homestead is of greater value than the modern homestead exemption $15,000, the other lands shall first be sold before resorting to the homestead, and in case of the sale of such homestead, if any balance remains after the payment of the debt and costs, such balance shall, to the extent of the modern homestead exemption $15,000 be exempt, and be applied upon such homestead exemption in the manner provided by law.

(Source: P.A. 94-293, eff. 1-1-06.)

(735 ILCS 5/12-906) (from Ch. 110, par. 12-906)

Sec. 12-906. Proceeds of sale. When a homestead is conveyed by the owner thereof, such conveyance shall not subject the premises to any lien or incumbrance to which it would not be subject in the possession of such owner; and the proceeds thereof, to the extent of the amount of the modern homestead exemption $15,000, shall be exempt from judgment or other process, for one year after the receipt thereof, by the person entitled to the exemption, and if reinvested in a homestead the same shall be entitled to the same exemption as the original homestead.

(Source: P.A. 94-293, eff. 1-1-06.)

(735 ILCS 5/12-909) (from Ch. 110, par. 12-909)

Sec. 12-909. Bid for less than exempted amount. No sale shall be made of the premises on such judgment unless a greater sum than the modern homestead exemption $15,000 is bid therefor. If a greater sum is not so bid, the judgment may be set aside or modified, or the enforcement of the judgment released, as for lack of property.

(Source: P.A. 94-293, eff. 1-1-06.)

(735 ILCS 5/12-910) (from Ch. 110, par. 12-910)

Sec. 12-910. Proceedings to enforce judgment. If in the opinion of the judgment creditors, or the officer holding a certified copy of a judgment for enforcement against such individuals, the premises claimed by him or her as exempt are worth more than the modern homestead exemption $15,000, such officer shall summon 3 individuals, as commissioners, who shall, upon oath, to be administered to them by the officer, appraise the premises, and if, in their opinion, the property may be divided without damage to the interest of the parties, they shall set off so much of the premises, including the dwelling house, as in their opinion is worth the modern homestead exemption $15,000, and the residue of the premises may be advertised and sold by such officer. Each commissioner shall receive for his or her services the sum of $5 per day for each day necessarily engaged in such service. The officer summoning such commissioners shall receive such fees as may be allowed for serving summons, but shall be entitled to charge mileage for only the actual distance traveled from the premises to be appraised, to the residence of the commissioners summoned. The officer shall not be required to summon commissioners until the judgment creditor, or some one for him or her, shall advance to the officer one day's fees for the commissioners, and unless the creditor shall advance such fees the officer shall not be required to enforce the judgment. The costs of such appraisement shall not be taxed against the judgment debtor unless such appraisement shows that the judgment debtor has property subject to such judgment.

(Source: P.A. 94-293, eff. 1-1-06.)

(735 ILCS 5/12-911) (from Ch. 110, par. 12-911)

Sec. 12-911. Notice to judgment debtor. In case the value of the premises is, in the opinion of the commissioners, more than the modern homestead exemption $15,000, and cannot be divided as is provided for in Section 12-910 of this Act, they shall make and sign an appraisal of the value thereof, and deliver the same to the officer, who shall deliver a copy thereof to the judgment debtor, or to some one of the family of the age of 13 years or upwards, with a notice thereto attached that unless the judgment debtor pays to such officer the surplus over and above the modern homestead exemption $15,000 on the amount due on the judgment within 60 days thereafter, such premises will be sold.

(Source: P.A. 94-293, eff. 1-1-06.)

(735 ILCS 5/12-912) (from Ch. 110, par. 12-912)

Sec. 12-912. Sale of premises - Distribution of proceeds. In case of such surplus, or the amount due on the judgment is not paid within the 60 days, the officer may advertise and sell the premises, and out of the proceeds of such sale pay to such judgment debtor the sum of the modern homestead exemption $15,000, and apply the balance on the judgment.

(Source: P.A. 94-293, eff. 1-1-06.)

(735 ILCS 5/12-1001) (from Ch. 110, par. 12-1001)

Sec. 12-1001. Personal property exempt. The following personal property, owned by the debtor, is exempt from judgment, attachment, or distress for rent:

(a) All household goods, including, but not limited to, the debtor's and the debtor's dependents' food, eating and cooking utensils, bedding, furniture, books, refrigerator, stove, microwave oven, kitchen appliances, necessary provisions, washing machine, clothes dryer, vacuum cleaner, yard equipment, and household equipment and tools, and all personal possessions, including, but not limited to, clothing, pets, personal health aids, medications, computers or similar electronic devices, and telephones, except that a creditor may obtain court permission to levy on any item of furniture, appliance, electronic device, yard equipment, precious item, utensils, set of utensils, or any other item exempt under this subsection that has a resale value of more than $5,000, unless that item is exempt under another subsection. The debtor may exempt one piece of jewelry up to a value of $10,000 The necessary wearing apparel, bible, school books, and family pictures of the debtor and the debtor's dependents;

(b) The debtor's equity interest, not to exceed $15,000 $4,000 in value, in any nonexempt properties other property;

(c) The debtor's equity interest, not to exceed $25,000 $2,400 in value, in any one motor vehicle;

(d) The debtor's equity interest, not to exceed $7,500 $1,500 in value, in any implements, professional books, equipment, one motor vehicle used primarily for the debtor's occupation, regulated licenses, or other tools of the trade of the debtor;

(e) Professionally prescribed health aids for the debtor or a dependent of the debtor;

(f) All proceeds payable because of the death of the insured and the aggregate net cash value of any or all life insurance and endowment policies and annuity contracts payable to a wife or husband of the insured, or to a child, parent, or other person dependent upon the insured, or to a revocable or irrevocable trust which names the wife or husband of the insured or which names a child, parent, or other person dependent upon the insured as the primary beneficiary of the trust, whether the power to change the beneficiary is reserved to the insured or not and whether the insured or the insured's estate is a contingent beneficiary or not;

(g) The debtor's right to receive and retain:

(1) a social security benefit, unemployment compensation, or public assistance benefit;

(2) a veteran's benefit;

(3) a disability, illness, or unemployment benefit, including utility, rental, and foreclosure assistance grants, down payment assistance funds, stimulus payments, and means-tested tax credits; and

(4) alimony, support, or separate maintenance, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor.

(h) The debtor's right to receive and retain, or property that is traceable to:

(1) an award under a crime victim's reparation law;

(2) a payment on account of the wrongful death of an individual of whom the debtor was a dependent, to the extent reasonably necessary for the support of the debtor;

(3) a payment under a life insurance contract that insured the life of an individual of whom the debtor was a dependent, to the extent reasonably necessary for the support of the debtor or a dependent of the debtor;

(4) a payment, not to exceed $30,000 $15,000 in value plus any other amount necessary to cover the costs of reasonable medical, rehabilitative, or psychological treatment, on account of personal bodily injury of the debtor or an individual of whom the debtor was a dependent; and

(5) any restitution payments made to persons pursuant to the federal Civil Liberties Act of 1988 and the Aleutian and Pribilof Island Restitution Act, P.L. 100-383.

For purposes of this subsection (h), a debtor's right to receive an award or payment shall be exempt for a maximum of 2 years after the debtor's right to receive the award or payment accrues; property traceable to an award or payment shall be exempt for a maximum of 5 years after the award or payment accrues; and an award or payment and property traceable to an award or payment shall be exempt only to the extent of the amount of the award or payment, without interest or appreciation from the date of the award or payment.

(i) The debtor's right to receive and retain an award under Part 20 of Article II of this Code relating to crime victims' awards.

(i-5) The debtor's equity interest in any funds held in a health savings account, flexible spending account, medical savings account, or a health reimbursement arrangement.

(i-10) In each bank or other regulated depository account held by the debtor, an amount not to exceed $10,000, until:

(1) a hearing has been held; and

(2) the debtor has been given a reasonable opportunity to indicate to which personal property he or she seeks to exempt under subsection (b). At which time, the debtor may protect up to $15,000 of equity in any nonexempt personal property. Notwithstanding the foregoing, if the debtor, after being provided a reasonable opportunity to indicate to which personal property he or she seeks to apply the exemption under subsection (b), does not attend the hearing or return the citation electing the debtor's exemptions, the exemption in subsection (b) shall be automatically applied to prohibit garnishment that would result in the debtor having less than a cumulative balance of $10,000 in his or her bank or other depository accounts.

Upon receiving a citation to discover assets, a financial institution shall not freeze the debtor's access or turn over to the judgment creditor the amount in the debtor's account that is $15,000 or less, but shall inform the debtor, the court, and the judgment creditor of the amount in the debtor's account. A judgment creditor may move to recover any nonexempt fraudulent transfers as defined in the Uniform Fraudulent Transfer Act. The debtor may apply or stack unused wildcard personal property exemptions to any type of unprotected asset.

A garnishment order issued against a bank or other account shall instruct the garnishee that it is to freeze or garnish only the amount exceeding $15,000, unless the judgment creditor has established through a hearing as described in Section 2-1402 that the debtor has already claimed this exemption for a different account for the debt.

(i-15) The debtor's interest in any prepaid burial plot, cremation services, or funeral expenses.

(j) Moneys held in an account invested in the Illinois College Savings Pool of which the debtor is a participant or donor and funds invested in an ABLE Account as defined by Section 529 of the Internal Revenue Code, except the following non-exempt contributions:

(1) any contribution to such account by the debtor as participant or donor that is made with the actual intent to hinder, delay, or defraud any creditor of the debtor;

(2) any contributions to such account by the debtor as participant during the 365 day period prior to the date of filing of the debtor's petition for bankruptcy that, in the aggregate during such period, exceed the amount of the annual gift tax exclusion under Section 2503(b) of the Internal Revenue Code of 1986, as amended, in effect at the time of contribution; or

(3) any contributions to such account by the debtor as participant during the period commencing 730 days prior to and ending 366 days prior to the date of filing of the debtor's petition for bankruptcy that, in the aggregate during such period, exceed the amount of the annual gift tax exclusion under Section 2503(b) of the Internal Revenue Code of 1986, as amended, in effect at the time of contribution.

For purposes of this subsection (j), "account" includes all accounts for a particular designated beneficiary, of which the debtor is a participant or donor.

(k) The debtor's proceeds from any loan for educational expenses, except as allowed by Title 20, Section 1095a of the United States Code.

(l) Any additional amount of income or assets the court finds are needed to prevent substantial hardship to the debtor or the debtor's dependents.

Money due the debtor from the sale of any personal property that was exempt from judgment, attachment, or distress for rent at the time of the sale is exempt from attachment and garnishment to the same extent that the property would be exempt had the same not been sold by the debtor.

If a debtor owns property exempt under this Section and he or she purchased that property with the intent of converting nonexempt property into exempt property or in fraud of his or her creditors, that property shall not be exempt from judgment, attachment, or distress for rent. Property acquired within 6 months of the filing of the petition for bankruptcy shall be presumed to have been acquired in contemplation of bankruptcy.

The personal property exemptions set forth in this Section shall apply only to individuals and only to personal property that is used for personal rather than business purposes. The personal property exemptions set forth in this Section shall not apply to or be allowed against any money, salary, or wages due or to become due to the debtor that are required to be withheld in a wage deduction proceeding under Part 8 of this Article XII.

The Secretary of Financial and Professional Regulation is authorized and empowered to adopt rules consistent with this Section that define the terms used in this Section and as may be necessary and appropriate to interpret, implement, and enforce this Section.

(Source: P.A. 100-922, eff. 1-1-19.)

(735 ILCS 5/13-206) (from Ch. 110, par. 13-206)

Sec. 13-206. Ten year limitation. Except as provided in Section 2-725 of the "Uniform Commercial Code", actions on bonds, promissory notes, bills of exchange, written leases, written contracts, or other evidences of indebtedness in writing and actions brought under the Illinois Wage Payment and Collection Act shall be commenced within 10 years next after the cause of action accrued; but if any payment or new promise to pay has been made, in writing, on any bond, note, bill, lease, contract, or other written evidence of indebtedness, within or after the period of 10 years, then an action may be commenced thereon at any time within 10 years after the time of such payment or promise to pay. For purposes of this Section, with regard to promissory notes dated on or after the effective date of this amendatory Act of 1997, a cause of action on a promissory note payable at a definite date accrues on the due date or date stated in the promissory note or the date upon which the promissory note is accelerated. With respect to a demand promissory note dated on or after the effective date of this amendatory Act of 1997, if a demand for payment is made to the maker of the demand promissory note, an action to enforce the obligation of a party to pay the demand promissory note must be commenced within 10 years after the demand. An action to enforce a demand promissory note is barred if neither principal nor interest on the demand promissory note has been paid for a continuous period of 10 years and no demand for payment has been made to the maker during that period.

Notwithstanding any other provisions of law, with respect to any consumer debt judgment as defined in subsection (b) of Section 2-1303, no person or entity may recover interest accumulated on any indebtedness that the person or entity knew or should have known the cause of action accrued, if an action on that indebtedness is not brought within 5 years after the cause of action accrued.

(Source: P.A. 95-209, eff. 8-16-07.)

Section 10. The Illinois Wage Assignment Act is amended by changing Section 4 as follows:

(740 ILCS 170/4) (from Ch. 48, par. 39.4)

Sec. 4. The maximum wages, salary, commissions, and bonuses that may be collected by an assignee for any work week shall not exceed the lesser of (1) 10% 15% of such gross amount paid for that week or (2) the amount by which disposable earnings for a week exceed 80 45 times the Federal Minimum Hourly Wage prescribed by Section 206(a)(1) of Title 29, U.S.C., as amended, or the minimum hourly wage prescribed by Section 4 of the Minimum Wage Law, whichever is greater, in effect at the time the amounts are payable. This provision (and no other) applies irrespective of the place where the compensation was earned or payable and the State where the employee resides. No amounts required by law to be withheld may be taken from the amount collected by the creditor. The term "disposable earnings" means that part of the earnings of any individual remaining after the deduction from those earnings of any amounts required by law to be withheld and any deductions related to employment, retirement, or health, including, but not limited to, deductions for health, vision, and dental insurance, deductions for transportation, required work uniforms, flexible spending account deductions, retirement account related deductions, and health savings account deductions. If there is more than one assignment demand received by the employer, the assignees shall collect in the order or priority of service of the demand upon the employer, but the total of all collections shall not exceed the amount that could have been collected if there had been one assignment demand.

Benefits and refunds payable by pension or retirement funds or systems, any assets of employees held by those funds or systems, and any moneys an employee is required to contribute to those funds or systems are exempt and are not subject to a wage assignment under this Act.

A fee of $12 for each wage assignment shall be collected by and paid to the employer and the amount so paid shall be credited against the amount of the wage-earner's outstanding debt.

(Source: P.A. 94-305, eff. 7-21-05.)