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  1. #1
    Lee007 is offline Junior Member
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    Question on citation to discover assets third party

    What is the name of your state (only U.S. law)? IL

    I have a judgment against me, amount is just over $13,500. Now when I first got the summons, I contacted them made a payment plan, they suspended further action but unfortunately was unable to keep up with the payments, that was late last year. In Sept of this year the creditor received a judgment against me, they reinstated the motion(?) a few months earlier. I'm currently unemployed, have no income.

    I've read and it seems this citation essentially would freeze my bank account until I can show whether those funds are exempt or not. My problem is the following, a relative regularly has funds deposited into my account, they do not have one of their own. They need access to these funds sooner than the court date, which is 3 weeks away. Is there a problem with setting up a different bank account at another bank and have those funds deposited into that account? Unfortunately they are unable to open an account under their own name, and bank transfers are the only way to withdraw the funds.

    I would not be attempting to hide this account, if asked I will say this account exists, they are aware of my other account, since it is the one I was making payments from. I guess my question is two-fold, is there a problem in diverting these funds this way, and how soon before they discover the second account? I plan on contacting them and see if I can set up another payment plan, or if bankruptcy (this isnt my only debt, just the only one with a judgment) would be better.

    Also, the citation asks for all deposit information, would they be able to track down who is depositing and attempt to seize that too? It is an online seller account. Lastly, since all of these funds, even the seller account, are under my name is there any way I can show they do not belong to me? I know its a bit ridiculous sounding, but none of this is actually my money, if they were able to get a bank account (have their own debt problems, also unemployed) this wouldnt be an issue. They are willing to testify to that fact.

    If you managed to read all that thanks for any help you can provide.
  2. #2
    Lee007 is offline Junior Member
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    can anyone help on this?
  3. #3
    Dave1952 is offline Member
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    You say that you have a relative who has been depositing funds regularly into your account because he does not have one and that he also has access to that money. This leads to the obvious question of why the relative is doing this. You suggest that you are helping your relative to avoid his own debt problems. The courts are not a place where you can litigate illegal activities. You do not have "clean hands" and a court will refuse to help you.

    Good luck
  4. #4
    ShyCat is offline Senior Member
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    Quote Originally Posted by Lee007 View Post
    Lastly, since all of these funds, even the seller account, are under my name is there any way I can show they do not belong to me?
    See, the problem is that those funds do belong to you since they were deposited in your account. Your relative's actual intent (to hide the money from his creditors) does not distinguish those funds from gifted money.
  5. #5
    latigo is offline Senior Member
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    You have been served with a Citation to Discover Assets all in accordance with Illinoisís Code of Civil Procedure Article II part 14, Section 2.402.

    Also, the Citation does not just ďseemĒ to freeze this bank account as you suggest. It does in fact temporarily, at least, freeze not just the funds on deposit, but all of your non exempt assets upon the conditions, and subject to penalties imposed by law as are spelled out in the body of the Citation.

    And unless you can show that certain of the funds on deposit were derived from an exempt source, such as social security, I donít see how any of the bank credits can be found to be exempt from execution.

    Furthermore, if this supposed blind depositor wishes to assert any claim to the credits in the account, then he or she must proceed in accordance with the following provision of the Section 2.402 of this Code of Rules:

    "(g) If it appears that any property, chose in action, credit or effect discovered, or any interest therein, is claimed by any person, the court shall, as in garnishment proceedings, permit or require the claimant to appear and maintain his or her right. The rights of the person cited and the rights of any adverse claimant shall be asserted and determined pursuant to the law relating to garnishment proceedings."

    In other words, it MUST be established to the satisfaction of the court that he or she has a legitimate third party claim. And I suggest that both of you hire an attorney because it is going to be an up hill battle.
    ___________________

    Now youíve read the Citation and are presumed to understand its import. So I suggest that you avoid any funny business or be prepared for the consequences, which could include incarceration for contempt.

    Personally, I donít buy this story of blind deposits to your banking account, and I donít believe the court will either.
  6. #6
    Lee007 is offline Junior Member
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    Thanks everyone for the help. I figured that would be the case (concerning their funds). As to helping him hide his funds, that actually is not the reason. They have financial problems and it led to their bank account being closed, and an account was needed and at the time (a year ago) I hadn't even thought of this. Since my post they've found a bank willing to open an account, and any future deposits will be directed their way, the seller account will be setup properly under their name in the next couple of days.

    Quote Originally Posted by Dave1952 View Post
    You suggest that you are helping your relative to avoid his own debt problems. The courts are not a place where you can litigate illegal activities. You do not have "clean hands" and a court will refuse to help you.

    Good luck
    If I gave that impression then the fault is mine, but no, they are not hiding anything from anyone. They have no judgments against them, It was simply a quick solution that we never thought twice about. I don't understand what the illegal activities I am attempting to litigate are.
  7. #7
    Lee007 is offline Junior Member
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    To anyone that knows, am I personally required to appear in court for the citation of my bank? Reading the notices they state the court is summoning my bank in order to discover assets of mine. If needed I can go, but otherwise I only have 10dollars in my account, they aren't exempt and I don't wish to claim them.
  8. #8
    cosine is offline Senior Member
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    Quote Originally Posted by Lee007 View Post
    To anyone that knows, am I personally required to appear in court for the citation of my bank? Reading the notices they state the court is summoning my bank in order to discover assets of mine. If needed I can go, but otherwise I only have 10dollars in my account, they aren't exempt and I don't wish to claim them.
    Then tell the court you will surrender these funds.

    Your other option is bankuptcy.
  9. #9
    Lee007 is offline Junior Member
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    Quote Originally Posted by cosine View Post
    Then tell the court you will surrender these funds.

    Your other option is bankuptcy.
    Yes, and thank you for your response, I am currently looking at all my options. Like I stated earlier I had settled on a payment plan and unfortunately wasnt able to keep up with it. I'm hoping to try that again, but in the meantime is it necessary for me to personally appear in court? I thought the court will automatically decide in their favor and grant them the funds. The court date is next week, no real reason to try and expedite things now.

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