A creditor can be awarded a favorable judgment if they sue you and win. The judgment orders you to pay a specified amount to the creditor, but sometimes they can get aggressive with their collection efforts. The creditor can bring forth a Citation to Discover Assets and require you to reappear in court. This time around, the creditor aims to discover your income and property value and push to seize such assets to pay off your debt. The court can require you to bring financial documents like bank statements, pay stubs, and tax returns to make the determination.
Automatic Lien Results from a Citation to Discover Assets
Before you are taken to court, the creditor will issue a written notice that details your rights as a debtor, as well when the hearing will take place. The date of the actual hearing will be identified as the return date. The law requires you to show in court on that date and time to answer all questions posed to you by the creditor’s attorney regarding your property and income. If you fail to report in court or don’t have the requested documents upon your arrival, the judge can charge you with contempt of court and even have you arrested.
In such an instance, an automatic lien would be placed on all your nonexempt property, which means you can’t legally transfer that property as it is officially a seized asset. Violation of the citation may result in additional court penalties.
If the creditor also serves your bank with the Citation to Discover Assets, the bank is required to put a freeze on all accounts under your name, unless you possess exempt funds. The bank is also required to appear in court. Attending the hearing is in your best interests and it’s worth noting that your bank cannot give any money to the creditor without first being served a court order.
The creditor also has the ability to seize assets from a third party that belongs to you. A key example is an insurance company that has not yet paid out your claim.
Exempt Assets in Illinois
In the state of Illinois, some of your property and income is protected and cannot be seized. These are known as exemptions and include the following:
- FEMA aid
- Student loan reimbursement
- Social Security Income (SSI)
- Retirement benefits
- Unemployment compensation
- $15,000 in equity for your home or any land occupied as residence
- $30,000 in equity for a couple that owns a home jointly
- Property owned entirely by a tenancy
- Homestead sale proceeds are exempt from seizure for up to one year
Do not allow your debt issues to get to this point. Trust the Illinois credit card debt relief attorneys at Benveniste Law Offices to help you avoid litigation and negotiate your debt issues with creditors. Don’t allow your debt issues to persist without taking action! Contact us today for a free case evaluation.