Publications

Articles on Debtors and Creditors

Liens obtained by hospitals under Health Care Services Lien Act are not limited to awards of medical expenses

December
2017
Illinois Law Update
Page 16
The Supreme Court of Illinois concluded that liens obtained by hospitals under the Health Care Services Lien Act (770 ILCS 23/1 et seq.) (the "Lien Act"), are not limited to or conditioned upon a finding or allocation for medical expenses for injuries sustained by a minor.

New court-approved family law, small claims forms will be released soon

By Matthew Hector
October
2017
LawPulse
Page 12
The Illinois Supreme Court continues to build its library of court-approved forms, available to pro se litigants and lawyers alike.

Financially Distressed Local Governments: In Illinois, Relief Options Are Limited

By Richard J. Mason
April
2017
Article
Page 40
The author takes a look at current debt-relief options for financially distressed cities and finds them wanting.

Employees enjoy easier path to revoking wage assignments by creditors, if covered by federal law

January
2017
Illinois Law Update
Page 20
The Illinois Wage Assignment Act was amended to impose additional requirements on wage assignment notice and service.

Interest penalties payable by the State on unpaid bills begin accruing 90 days after receipt from vendors, an increase from 60 days

January
2017
Illinois Law Update
Page 20
Interest penalties will not begin accruing on unpaid bills from state vendors until 90 days after the bill was received by the State.

Borrower not entitled to set-off on deficiency judgment when bank resells house for more than purchase amount

September
2016
Illinois Law Update
Page 18
On June 28, 2016, the Second District of the Illinois Appellate Court held that borrowers could not receive a set-off against a deficiency judgment when the bank purchased their home at auction after a foreclosure and subsequently sold it for a higher amount.

Amendments to the Collection Agency Act define terms and apply Act to debt collection by collection agencies

July
2016
Illinois Law Update
Page 18
The Department of Financial and Professional Regulation amended the Collection Agency Act. The amendments add definitions for the terms "collection agency," "consumer credit," and "consumer debt."

From the Newsletters - The first 10 steps if you represent a creditor

July
2016
Article
Page 40
The first 10 steps to take if you represent a creditor in a foreclosure.

Counties hire collectors to recover unpaid, decades-old fines

By Matthew Hector
January
2016
LawPulse
Page 12
Illinois counties are chasing down unpaid fines from as far back as the mid-80s. Critics say the practice is unfair and counterproductive.

They said my client paid in full - can they take that back?

July
2015
Article
Page 28
Q. The finance company sent my client the title to her truck, along with the contract stamped "paid in full." A year later they're saying they made a mistake. Can I hold them to their release?

Judgments in favor of unlicensed debt collection agencies are not void

May
2015
Illinois Law Update
Page 16
On February 27, 2015, the Illinois Supreme Court held that a judgment in favor of an unlicensed debt collection agency is not void. A judgment is only void, the court noted, if it is entered without jurisdiction.

7th Circuit case shakes up the creditor’s bar

By Matthew Hector
December
2014
LawPulse
Page 566
Contrary to longstanding practice, collection cases must now be filed in the Cook County municipal district court where the debtor lives or the contract was signed.

Nullity rule for unregistered collection agencies is no longer absolute

November
2014
Illinois Law Update
Page 524
On September 10, 2014, the First District Appellate Court of Illinois upheld a foreclosure and sale even though the plaintiff agency was not registered under the Collection Agency Act, 225 ILCS 425/1 et seq., because the defendants failed to show the Act applied to the plaintiff.

Defending Confession Judgment Cases in Illinois

By Andrew R. Schwartz
October
2014
Article
Page 494
A confession of judgment lets a creditor take a judgment without notice to the debtor. Here are strategies for representing commercial debtors facing these judgments.

Luxury Tax: Collecting from High-Income Judgment Debtors

By Andrew N. Plasz
June
2014
Article
Page 294
The author argues that wages used for investments or to purchase luxuries should be subject to collection by a judgment creditor.

New citation procedures make enforcing debt-collection judgments easier

By Adam W. Lasker
October
2013
LawPulse
Page 498
A new law reduces the role of sheriffs in collection proceedings and increases the power of courts and practitioners to enforce judgments.

Forcing Lenders to Comply with the Home Affordable Modification Program

By Andrew J. Hawes
June
2013
Article
Page 308
The seventh circuit rules that borrowers can sue lenders for state law breach of contract and other claims related to a trial period plan payment agreement.

Judgment and memorandum of judgment expire simultaneously

May
2013
Illinois Law Update
Page 228
On February 26, 2013, the third district appellate court held that a judgment creditor must revive its judgment and file a memorandum of revived judgment within seven years from the date the original judgment was entered or previously revived.

Mortgage Fraud and E&O Insurance: Making Sure There’s Something to Sue For

By Kurt B. Drain
May
2013
Article
Page 250
Too often, lenders win mortgage-fraud judgments against defendants who turn out to be judgment proof. The solution? Ensure that mortgage brokers have adequate E&O coverage.

A New Law Overturns Cypress Creek

By Joseph R. Fortunato
April
2013
Column
Page 204
A new law puts contractors with secured liens ahead of lenders.

New supreme court rules promote foreclosure mediation

By Adam W. Lasker
April
2013
LawPulse
Page 170
New consumer-friendly rules, effective May 1, are designed to make the foreclosure process more fair and reduce the backlog of cases.

Protecting Settling Plaintiffs When a Defendant Goes Bankrupt

By Christopher B. Lega
April
2013
Article
Page 200
Most settlement agreements ignore an important risk - that the defendant will file for bankruptcy shortly after settlement. Here's how to protect plaintiffs.

No More ‘Debtors’ Prison’: Greater Notice, Protections for Judgment Debtors

By Kelly M. Greco and Stephanie R. Hammer
March
2013
Article
Page 134
A recently enacted law gives debtors better notice of collection proceedings and protects their rights once they have begun.

Debtor’s life insurance policy is exempt personal property if its proceeds are directed to a trust for the benefit of a husband, wife, or dependent. PA 097-1030

January
2013
Illinois Law Update
Page 16
The Code of Civil Procedure is amended by extending a debtor's exempt personal property to include some life insurance policies, endowment policies, and annuities if the proceeds are directed into a particular kind of trust. 735 ILCS 5/12-1001.

Credit Agreements Act does not bar debtor challenge to affirmative defense

October
2012
Illinois Law Update
Page 520
On July 18, 2012, the third district appellate court held that the Illinois Credit Agreements Act ("Credit Agreements Act") did not bar a debtor from contesting the accuracy of a commercial security agreement when the document was introduced by a creditor as an affirmative defense.

Credit Card Collection Suits: Life Preservers for Illinois Consumers

By Edward J. Halper and Rachel L. Schaller
July
2012
Article
Page 360
Recent case law, consumer protection statutes, and the hearsay rule give Illinois consumers an array of legal and procedural defenses in credit card collection suits.

Bill would require personal service for debtors

By Adam W. Lasker
June
2012
LawPulse
Page 286
Pending legislation would require that debtors get personal service, not merely notice by mail, before courts begin key legal processes that could put them behind bars.

Getting Debtor Names Right Under the UCC

By Michelle Nijm
June
2012
Column
Page 332
It’s harder than you think, but pending legislation would ease the burden.

Are Inherited IRAs Exempt from Creditors in Bankruptcy?

By Justin F. Polach
December
2011
Article
Page 628
Standard IRAs are exempt in bankruptcy and thus unavailable to creditors. But what if the debtor inherited the IRA account - is it likewise exempt? A look at the evolving case law.

Creditors Are Not Freeloaders: The Common Fund Doctrine Does Not Apply to Hospital Lienholders

By Robert D. Kreisman
November
2011
Article
Page 568
Wendling holds that hospital lienholders are creditors, not third-party beneficiaries of the plaintiff's lawsuit, and thus not required to pay attorney fees under the common fund doctrine.

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