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Courthouse where citation to discover assets takes place

Been Served a Citation to Discover Assets in Illinois? Here’s What You Need to Know

Facing a judgment can be stressful, and receiving a citation to discover assets may add to the anxiety. But before you panic, take a deep breath and understand what this legal proceeding means for you.

What is a Citation to Discover Assets?

Think of it as a court order asking you to answer specific questions about your financial situation. It’s a tool used by judgment creditors, individuals or businesses you owe money to, to locate assets that can be used to settle the debt. The citation will outline the amount owed, the creditor’s information, and the date you need to appear in court.

Common Questions in Citations to Discover

The Plaintiff can ask any questions (interrogatories) they think will help them collect what you owe. They can also ask anyone else they believe might hold money on your behalf. In fact, I too, have been served with a citation to reveal assets because a creditor believed I was holding funds for a client.

Typical questions during this process often include:

  1. Disclosing all of your income from all various sources.
  2. Providing details (including copies of checks, deposits and withdrawals) about all the bank accounts you control or have money in, including any associated safety deposit boxes.
  3. Showing your paystubs or other proof of income.
  4. Listing all the assets you own, such as investments, stocks, bonds, vehicles, and real estate.
  5. Detailing any business ownership or partnerships.
  6. Identifying valuable personal assets like jewelry, art, or collectibles.
  7. Disclosing outstanding loans or debts owed to you.
  8. Revealing any financial interests in trusts or offshore accounts. This includes land trusts.
  9. Providing information on other income streams, such as rental income or royalties.
  10. Sharing details about retirement accounts, pension plans, or other long-term investments.
  11. Clarifying any recent large financial transactions or gifts.
  12. Providing any relevant tax returns, whether for business or personal purposes.

Do I Have to Respond to a Citation to Discover Assets?

Yes, ignoring the citation is not an option. Failure to appear can result in further legal action, including arrest. If non-compliance persists, the judge may issue a body attachment, essentially an arrest warrant, enforced by the Cook County Sheriff. It’s crucial to address the citation and participate in the legal proceedings to avoid such serious repercussions.

What Happens at Court?

At the Citation to Discover Assets hearing, the creditor or their attorney will ask you questions about your income, assets, and expenses. This might include details about your bank accounts, property, vehicles, investments, and debts. Be prepared to provide documentation to support your answers.

What Assets are Protected?

Not all your assets are up for grabs. Illinois law exempts certain assets from judgment collection, such as:

  • Homestead exemption: Protects a portion of your primary residence equity, up to $15,000 per person.
  • Personal property exemptions: Covers basic necessities like furniture, clothing, and tools of your trade.
  • Retirement account exemptions: Shields certain IRAs, 401(k)s, and pensions.

Can I Object to the Citation?

Absolutely. If you believe the citation is invalid or the requested information is irrelevant, you can consult with an attorney to file objections or motions to quash the citation. However, objecting to the citation alone will not stop the process forever. Your best outcome is to, at most, delay it. One of the only effective ways to stop a citation to discover assets is to successfully vacate the underlying judgment. If successful, your case returns to the litigation stage. However, vacating a judgment is challenging, particularly once you have reached the citation stage, which is pretty much the last step in the legal process.

What Should I Do Now?

  • Stay calm and informed: Gather the documents you might need, like bank statements and pay stubs.
  • Consult an attorney: Seek legal guidance to understand your rights and navigate the process effectively.
  • Be honest and cooperative: Answer questions truthfully and provide requested documents on time.
  • Focus on resolution: Discuss with your attorney and the creditor potential options for debt settlement or payment plans.

Remember, being served a citation doesn’t mean your financial situation is hopeless. Stay informed, seek legal counsel, and explore options to address the debt while protecting your rights and exempt assets. Learn more about the power of the bankruptcy automatic stay to stop a citation to discover assets.