Bill Text: IL HB0530 | 2009-2010 | 96th General Assembly | Introduced

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Bill Title: Amends the Code of Civil Procedure. Provides that if the court finds that a judgment debtor is a family supporter and entitled to relief, the court may prospectively reduce the interest rate on a judgment to a rate not lower than 3%, taking into consideration the needs of the judgment debtor's dependents and the judgment debtor's ability to meet those needs. Provides that any party may request a readjustment of a reduced interest rate on a judgment based on a relevant change in circumstances. Provides that a judgment debtor shall be notified that the court may reduce the amount of wages withheld and reduce the rate of interest on the judgment, if the court finds that the judgment debtor is a "family supporter" and the full wage garnishment would result in a denial of necessities to the judgment debtor's dependents who are disabled or under the age of 18. Provides that under the Act, (1) "family supporter" means a person who supports and resides with one or more dependent children under the age of 18 or a dependent disabled person and whose relationship with the dependent child or disabled person is that of parent, stepparent, son, daughter, sibling, uncle, aunt, grandparent, or guardian; and (2) "dependent" means a child under the age of 18 or disabled person who resides with and is supported by the judgment debtor.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2010-03-12 - Tabled Pursuant to Rule 22(g) [HB0530 Detail]

Download: Illinois-2009-HB0530-Introduced.html

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96TH GENERAL ASSEMBLY State of Illinois 2009 and 2010 HB0530 Introduced 2/4/2009, by Rep. Mary E. Flowers SYNOPSIS AS INTRODUCED:
735 ILCS 5/2-1303 from Ch. 110, par. 2-1303
735 ILCS 5/12-805 from Ch. 110, par. 12-805
735 ILCS 5/12-808 from Ch. 110, par. 12-808
735 ILCS 5/12-811 from Ch. 110, par. 12-811
Amends the Code of Civil Procedure. Provides that if the court finds that a judgment debtor is a family supporter and entitled to relief, the court may prospectively reduce the interest rate on a judgment to a rate not lower than 3%, taking into consideration the needs of the judgment debtor's dependents and the judgment debtor's ability to meet those needs. Provides that any party may request a readjustment of a reduced interest rate on a judgment based on a relevant change in circumstances. Provides that a judgment debtor shall be notified that the court may reduce the amount of wages withheld and reduce the rate of interest on the judgment, if the court finds that the judgment debtor is a "family supporter" and the full wage garnishment would result in a denial of necessities to the judgment debtor's dependents who are disabled or under the age of 18. Provides that under the Act, (1) "family supporter" means a person who supports and resides with one or more dependent children under the age of 18 or a dependent disabled person and whose relationship with the dependent child or disabled person is that of parent, stepparent, son, daughter, sibling, uncle, aunt, grandparent, or guardian; and (2) "dependent" means a child under the age of 18 or disabled person who resides with and is supported by the judgment debtor.
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A BILL FOR
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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 2-1303, 12-805, 12-808, and 12-811 as
follows:
(735 ILCS 5/2-1303) (from Ch. 110, par. 2-1303)
Sec. 2-1303. Interest on judgment.
(a) Judgments recovered in any court shall draw interest at
the rate of 9% per annum from the date of the judgment until
satisfied, a rate as low as 3% per annum when the judgment
debtor qualifies for relief under subsection (b), or, 6% per
annum when the judgment debtor is a unit of local government,
as defined in Section 1 of Article VII of the Constitution, a
school district, a community college district, or any other
governmental entity. When judgment is entered upon any award,
report or verdict, interest shall be computed at the above
rate, from the time when made or rendered to the time of
entering judgment upon the same, and included in the judgment.
Interest shall be computed and charged only on the unsatisfied
portion of the judgment as it exists from time to time. The
judgment debtor may by tender of payment of judgment, costs and
interest accrued to the date of tender, stop the further

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accrual of interest on such judgment notwithstanding the
prosecution of an appeal, or other steps to reverse, vacate or
modify the judgment.
(b) Whenever the court finds that the judgment debtor is a
family supporter and entitled to relief, pursuant to Section
12-811, the court may prospectively reduce the interest rate on
a judgment, taking into consideration the needs of the judgment
debtor's dependents and the judgment debtor's ability to meet
those needs. A reduction in the rate of interest on a judgment
ordered by the court shall be prospective only and shall not be
below 3% per annum. Subsequent to the entry of an order
reducing the rate of interest on a judgment pursuant to this
subsection, any party may request that a prospective
readjustment in the rate be made, based on a relevant change in
circumstances.
(Source: P.A. 85-907.)
(735 ILCS 5/12-805) (from Ch. 110, par. 12-805)
Sec. 12-805. Summons; Issuance.
(a) Upon the filing by a judgment creditor, its attorney or
other designee of (1) an affidavit that the affiant believes
any person is indebted to the judgment debtor for wages due or
to become due, as provided in Part 8 of Article XII of this
Act, and includes the last address of the judgment debtor known
to the affiant as well as the name of the judgment debtor, and
a certification by the judgment creditor or his attorney that,

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before filing the affidavit, the wage deduction notice has been
mailed to the judgment debtor by first class mail at the
judgment debtor's last known address, and (2) written
interrogatories to be answered by the employer with respect to
the indebtedness, the clerk of the court in which the judgment
was entered shall issue summons against the person named in the
affidavit as employer commanding the employer to appear in the
court and answer the interrogatories in writing under oath. The
interrogatories shall elicit all the information necessary to
determine the proper amount of non-exempt wages. The
interrogatories shall require that the employer certify that a
copy of the completed interrogatories as specified in
subsection (c) of Section 12-808 has been mailed or hand
delivered to the judgment debtor and shall be in a form
consistent with local court rules. The summons shall further
command federal agency employers, upon effective service of
summons pursuant to 5 USC 5520a, to commence to pay over
deducted wages in accordance with Section 12-808. The summons
shall be in a form consistent with local court rules. The
summons shall be accompanied by a copy of the underlying
judgment or a certification by the clerk of the court that
entered the judgment, or by the attorney for the judgment
creditor, setting forth the date and amount of the judgment,
allowable costs expended, interest accumulated, credits paid
by or on behalf of the judgment debtor and the balance due the
judgment creditor, and one copy of a wage deduction notice in

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substantially the following form:
"WAGE DEDUCTION 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)
Amount of Judgment: $..........
Employer: (Name of Employer)
Return Date: (Insert return date specified in summons)
NOTICE: The court shall be asked to issue a wage deduction
summons against the employer named above for wages due or about
to become due to you. The wage deduction summons may be issued
on the basis of a judgment against you in favor of the judgment
creditor in the amount stated above.
The amount of wages that may be deducted is limited by
federal and Illinois law.
(1) Under Illinois law, the amount of wages that may be
deducted is limited to the lesser of (i) 15% of gross
weekly wages or (ii) the amount by which disposable
earnings for a week exceed the total of 50 45 times the
federal minimum hourly wage or, under a wage deduction

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summons served on or after January 1, 2006, the minimum
hourly wage prescribed by Section 4 of the Minimum Wage
Law, whichever is greater.
(2) Under federal law, the amount of wages that may be
deducted 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.
(3) Pension and retirement benefits and refunds may be
claimed as exempt from wage deduction under Illinois law.
(4) Under Illinois law, the court may enter an order
reducing the amount of wages withheld and reducing the rate
of interest a judgment debtor is obligated to pay on the
judgment, if the court finds that the judgment debtor is a
"family supporter" and the full wage garnishment would
result in a denial of necessities to the judgment debtor's
dependents who reside with the judgment debtor and who are
under the age of 18 or disabled. "Dependent" means a child
under the age of 18 or disabled person who resides with and
is supported by the judgment debtor.
You have the right to request a hearing before the court to
dispute the wage deduction because the wages are exempt. If you
are the "family supporter", you have the right to request: (1)
a reduction in the amount of the wage garnishment because the
full wage garnishment would result in a denial of necessities
to your dependents who reside with you and who are under the

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age of 18 or disabled; and (2) a reduction in the interest rate
on the judgment if the court determines that you are a family
supporter and entitled to relief taking into consideration the
needs of your dependents and your ability to meet those needs.
You are a "family supporter", if you actually support and
reside with one or more dependent children under the age of 18
or a dependent disabled adult and your relationship with the
dependent child or dependent disabled adult is that of parent,
stepparent, son, daughter, sibling, uncle, aunt, grandparent,
or guardian. To obtain a hearing in counties with a population
of 1,000,000 or more, you must notify the Clerk of the Court in
person and in writing at (insert address of Clerk) before the
Return Date specified above or appear in court on the date and
time on that Return Date. To obtain a hearing in counties with
a population of less than 1,000,000, you must notify the Clerk
of the Court in writing at (insert address of clerk) on or
before the Return Date specified above. The Clerk of the Court
will provide a hearing date and the necessary forms that must
be prepared by you or your attorney and sent to the judgment
creditor and the employer, or their attorney, regarding the
time and location of the hearing. This notice may be sent by
regular first class mail."
(b) In a county with a population of less than 1,000,000,
unless otherwise provided by circuit court rule, at the request
of the judgment creditor or his or her attorney and instead of
personal service, service of a summons for a wage deduction may

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be made as follows:
(1) For each employer to be served, the judgment
creditor or his or her attorney shall pay to the clerk of
the court a fee of $2, plus the cost of mailing, and
furnish to the clerk an original and one copy of a summons,
an original and one copy of the interrogatories and an
affidavit setting forth the employer's mailing address, an
original and one copy of the wage deduction notice required
by subsection (a) of this Section, and a copy of the
judgment or certification described in subsection (a) of
this Section. The original judgment shall be retained by
the clerk.
(2) The clerk shall mail to the employer, at the
address appearing in the affidavit, the copy of the
judgment or certification described in subsection (a) of
this Section, the summons, the interrogatories, and the
wage deduction notice required by subsection (a) of this
Section, by certified or registered mail, return receipt
requested, showing to whom delivered and the date and
address of delivery. This Mailing shall be mailed on a
"restricted delivery" basis when service is directed to a
natural person. The envelope and return receipt shall bear
the return address of the clerk, and the return receipt
shall be stamped with the docket number of the case. The
receipt for certified or registered mail shall state the
name and address of the addressee, the date of the mailing,

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shall identify the documents mailed, and shall be attached
to the original summons.
(3) The return receipt must be attached to the original
summons and, if it shows delivery at least 3 days before
the return date, shall constitute proof of service of any
documents identified on the return receipt as having been
mailed.
(4) The clerk shall note the fact of service in a
permanent record.
(c) Instead of personal service, a summons for a wage
deduction may be served and returned in the manner provided by
Supreme Court rule for service, otherwise than by publication,
of a notice for additional relief upon a party in default.
(Source: P.A. 94-306, eff. 1-1-06.)
(735 ILCS 5/12-808) (from Ch. 110, par. 12-808)
Sec. 12-808. Duty of employer.
(a) An employer served as herein provided shall pay the
employee the amount of his or her exempt wages.
(b) To the extent of the amount due upon the judgment and
costs, the employer shall hold, subject to order of court, any
non-exempt wages due or which subsequently come due. The
judgment or balance due thereon is a lien on wages due at the
time of the service of summons, and such lien shall continue as
to subsequent earnings until the total amount due upon the
judgment and costs is paid, except that such lien on subsequent

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earnings shall terminate sooner if the employment relationship
is terminated or if the underlying judgment is vacated or
modified.
(b-5) If the employer is a federal agency employer and the
creditor is represented by an attorney, then the employer, upon
service of summons and to the extent of the amount due upon the
judgment and costs, shall commence to pay over to the attorney
for the judgment creditor any non-exempt wages due or that
subsequently come due. The attorney for the judgment creditor
shall thereafter hold the deducted wages subject to further
order of the court and shall make answer to the court regarding
amounts received from the federal agency employer. The federal
agency employer's periodic payments shall be considered a
sufficient answer to the interrogatories.
(c) Except as provided in subsection (b-5), the employer
shall file, on or before the return date or within the further
time that the court for cause may allow, a written answer under
oath to the interrogatories, setting forth the amount due as
wages to the judgment debtor for the payroll periods ending
immediately prior to the service of the summons and a summary
of the computation used to determine the amount of non-exempt
wages. Except as provided in subsection (b-5), the employer
shall mail by first class mail or hand deliver a copy of the
answer to the judgment debtor at the address specified in the
affidavit filed under Section 12-805 of this Act, or at any
other address or location of the judgment debtor known to the

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employer.
A lien obtained hereunder shall have priority over any
subsequent lien obtained hereunder, except that liens for the
support of a spouse or dependent children shall have priority
over all other liens obtained hereunder. Subsequent summonses
shall be effective in the order in which they are served.
(d) The Illinois Supreme Court may by rule allow an
employer to file answers to interrogatories by facsimile
transmission.
(e) Pursuant to answer under oath to the interrogatories by
the employer, an order shall be entered compelling the employer
to deduct from wages of the judgment debtor subject to
collection under a deduction order an amount which is the
lesser of (i) 15% of the gross amount of the wages or (ii) the
amount by which disposable earnings for a week exceed 50 45
times the Federal Minimum Hourly Wage prescribed by Section
206(a)(1) of Title 29 of the United States Code, as amended, in
effect at the time the amounts are payable, for each pay period
in which statutory exemptions under Section 12-804 and child
support garnishments, if any, leave funds to be remitted 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. The order shall further
provide that deducted wages shall be remitted to the creditor
or creditor's attorney on a monthly basis.
(f) If after the entry of a deduction order, the employer

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ceases to remit funds to the plaintiff pursuant to the order
without a lawful excuse (which would terminate the employer's
obligation under the deduction order such as the debtor having
filed a bankruptcy, the debtor having left employment or the
employer having received service of a support order against the
judgment debtor having priority over the wage deduction
proceedings), the court shall, upon plaintiff's motion, enter a
conditional judgment against the employer for the balance due
on the judgment. The plaintiff may then issue a Summons After
Conditional Judgment. After service of the Summons After
Conditional Judgment, the employer may show cause why the
conditional judgment, or some portion thereof should not be
made a final judgment. If the employer shall fail to respond or
show cause why the conditional judgment or some portion thereof
should not be made final, the court shall confirm the
conditional judgment and make it final as to the employer plus
additional court costs.
(g) Notwithstanding any other provision, the court may
enter an order reducing the amount of wages withheld, if the
court finds that the judgment debtor is a family supporter and
the full wage garnishment would result in a denial of
necessities to his or her dependents who are under the age of
18 or disabled. The term "family supporter" means an individual
who actually supports and resides with one or more dependent
children under the age of 18 or a dependent disabled adult and
whose relationship with the dependent child or dependent

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disabled adult is that of parent, stepparent, son, daughter,
sibling, uncle, aunt, grandparent, or guardian. "Dependent"
means a child under the age of 18 or disabled person who
resides with and is supported by the judgment debtor.
(Source: P.A. 94-306, eff. 1-1-06; 95-661, eff. 1-1-08.)
(735 ILCS 5/12-811) (from Ch. 110, par. 12-811)
Sec. 12-811. Trial and judgment.
(a) The judgment creditor or the judgment debtor may
contest the truth or sufficiency of the employer's answer and,
in accordance with local court rules, the court shall
immediately, unless for good cause the hearing is postponed,
proceed to try the issues. The answer of the employer may be
contested without further pleading.
(b) At any time on or before the return date, the judgment
debtor may request a hearing to dispute the wage deduction
because the wages are exempt or to reduce the amount of wages
withheld because the judgment debtor is a family supporter
under this Section by notifying the clerk of court before that
time, using forms as may be provided by the clerk of the court.
To obtain a hearing in counties with a population of 1,000,000
or more, the judgment debtor must notify the clerk of court in
person and in writing at the clerk's office before the return
date specified in the summons or appear in court on the date
and time specified in the summons. To obtain a hearing in
counties with a population of less than 1,000,000, the judgment

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debtor must notify the clerk of the court in writing at the
clerk's office on or before the return date specified in the
summons. The Clerk of Court will provide a hearing date and 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 employer, or their 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 the hearing is continued,
proceed to try the issues.
(b-5) Notwithstanding any other provision, the court may
enter an order reducing the amount of wages withheld and reduce
the rate of interest the judgment debtor is obligated to pay on
the judgment, if the court finds that the judgment debtor is
obligated to pay on the judgment, the judgment debtor is a
family supporter, and the full wage garnishment would result in
a denial of necessities to his or her dependents who are under
the age of 18 or disabled. For purposes of this Act:
(1) "family supporter" means an individual who
actually supports and resides with one or more dependent
children under the age of 18 or a dependent disabled adult
and whose relationship with the dependent child or
dependent disabled adult is that of parent, stepparent,
son, daughter, sibling, uncle, aunt, grandparent or
guardian; and
(2) "dependent" means a child under the age of 18 or

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disabled person who resides with and is supported by the
judgment debtor.
(c) The trial shall be conducted as in other civil cases.
(d) If the finding is against an employer, a deduction
order shall be entered against the employer and in favor of the
judgment debtor to whom the employer is indebted, in the same
manner as if the facts are admitted.
(e) No deduction order shall be entered in favor of the
judgment creditor unless the affidavit filed by the judgment
creditor certifies that a copy of the wage deduction notice has
been mailed to the judgment debtor, under Section 12-805, and
the employer's answer provides a summary of the computation
used to determine the amount of non-exempt wages. If the
employer is a federal agency employer, a deduction order shall
be entered in favor of the judgment creditor if (i) the
affidavit filed by the judgment creditor certifies that a copy
of the wage deduction notice has been mailed to the judgment
debtor under Section 12-805 and (ii) the federal agency
employer identifies, on or with its periodic payments made
under subsection (b-5) of Section 12-808, the computation
method used to determine the amount of non-exempt wages. A
federal agency employer shall not be required to provide a
summary of the computation used to determine the amount of
non-exempt wages.
(Source: P.A. 89-28, eff. 6-23-95.)