101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5811

 

Introduced 11/10/2020, by Rep. La Shawn K. Ford

 

SYNOPSIS AS INTRODUCED:
 
735 ILCS 5/2-1303  from Ch. 110, par. 2-1303
735 ILCS 5/12-109  from Ch. 110, par. 12-109

    Amends the Code of Civil Procedure. Deletes language providing that the interest on judgments arising by operation of law from child support orders shall be calculated by applying one-twelfth of the current statutory interest rate as provided in the Code to the unpaid child support balance as of the end of each calendar month. Provides instead that every judgment arising by operation of law from a child support order shall not bear interest. Makes corresponding changes.


LRB101 21830 LNS 72784 b

 

 

A BILL FOR

 

HB5811LRB101 21830 LNS 72784 b

1    AN ACT concerning civil law.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Code of Civil Procedure is amended by
5changing Sections 2-1303 and 12-109 as follows:
 
6    (735 ILCS 5/2-1303)  (from Ch. 110, par. 2-1303)
7    Sec. 2-1303. Interest on judgment.
8    (a) Except as provided in subsection (b) and except for
9judgments arising by operation of law from a child support
10order, judgments recovered in any court shall draw interest at
11the rate of 9% per annum from the date of the judgment until
12satisfied or 6% per annum when the judgment debtor is a unit of
13local government, as defined in Section 1 of Article VII of the
14Constitution, a school district, a community college district,
15or any other governmental entity. When judgment is entered upon
16any award, report or verdict, interest shall be computed at the
17above rate, from the time when made or rendered to the time of
18entering judgment upon the same, and included in the judgment.
19Interest shall be computed and charged only on the unsatisfied
20portion of the judgment as it exists from time to time. The
21judgment debtor may by tender of payment of judgment, costs and
22interest accrued to the date of tender, stop the further
23accrual of interest on such judgment notwithstanding the

 

 

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1prosecution of an appeal, or other steps to reverse, vacate or
2modify the judgment.
3    (b)(1) As used in this Section:
4    "Consumer debt" means money or property, or the equivalent,
5due or owing, or alleged to be due or owing, from a natural
6person by reason of a transaction in which property, services,
7or money is acquired by that natural person primarily for
8personal, family, or household purposes.
9    "Consumer debt judgment" means a judgment recovered in any
10court against one or more natural persons arising out of
11consumer debt. "Consumer debt judgment" does not include any
12compensation for bodily injury or death, nor any judgment
13entered where the debt is guaranteed by or contains a joint and
14several liability provision between a natural person and a
15business, whether or not that business is legally constituted
16under the laws of this State or any other state.
17    (2) Notwithstanding subsection (a), consumer debt
18judgments of $25,000 or less shall draw interest from the date
19of the judgment until satisfied at the rate of 5% per annum.
20    (3) The judgment debtor may, by tender of payment of
21judgment, costs, and interest accrued to the date of tender,
22stop the further accrual of interest on the consumer debt
23judgment, notwithstanding the prosecution of an appeal, or
24other steps to reverse, vacate, or modify the judgment.
25    (4) This subsection applies to all consumer debt judgments
26entered into after the effective date of this amendatory Act of

 

 

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1the 101st General Assembly.
2(Source: P.A. 101-168, eff. 1-1-20.)
 
3    (735 ILCS 5/12-109)  (from Ch. 110, par. 12-109)
4    Sec. 12-109. Interest on judgments.
5    (a) Every judgment except those arising by operation of law
6from child support orders shall bear interest thereon as
7provided in Section 2-1303.
8    (b) Every judgment arising by operation of law from a child
9support order shall not bear interest as provided in this
10subsection. The interest on judgments arising by operation of
11law from child support orders shall be calculated by applying
12one-twelfth of the current statutory interest rate as provided
13in Section 2-1303 to the unpaid child support balance as of the
14end of each calendar month. The unpaid child support balance at
15the end of the month is the total amount of child support
16ordered, excluding the child support that was due for that
17month to the extent that it was not paid in that month and
18including judgments for retroactive child support, less all
19payments received and applied as set forth in this subsection.
20The accrued interest shall not be included in the unpaid child
21support balance when calculating interest at the end of the
22month. The unpaid child support balance as of the end of each
23month shall be determined by calculating the current monthly
24child support obligation and applying all payments received for
25that month, except federal income tax refund intercepts, first

 

 

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1to the current monthly child support obligation and then
2applying any payments in excess of the current monthly child
3support obligation to the unpaid child support balance owed
4from previous months. The current monthly child support
5obligation shall be determined from the document that
6established the support obligation. Federal income tax refund
7intercepts and any payments in excess of the current monthly
8child support obligation shall be applied to the unpaid child
9support balance. Any payments in excess of the current monthly
10child support obligation and the unpaid child support balance
11shall be applied to the accrued interest on the unpaid child
12support balance. Interest on child support obligations may be
13collected by any means available under federal and State law,
14rules, and regulations providing for the collection of child
15support.
16(Source: P.A. 101-336, eff. 8-9-19.)