In the Matter of Porayko

Federal 7th Circuit Court
Civil Court
Case Number: 
No. 12-2777
Decision Date: 
January 28, 2013
Federal District: 
N.D. Ill., E. Div.
In bankruptcy proceeding in which creditor sought finding that his citation to discover assets petition that had been served on debtor prior to debtor’s filing of bankruptcy petition constituted lien on debtor’s bank account containing $10,000 that had priority over claims of other creditors, Dist. Ct. did not err in finding that citation petition created lien in favor of said creditor on value of said bank account. Under 735 ILCS 5/2-1402(m), citation to discover assets petition creates lien on all “nonexempt personal property” under debtor’s control, and value of debtor’s bank account qualified as personal property under section 2-1402(m)(1). Ct. rejected Trustee’s contention that no lien was created since creditor served citation petition directly on debtor as opposed to bank.