Facing a revived judgment can be a daunting experience for any debtor. When a creditor seeks to revive a judgment, they’re attempting to extend the period during which they can enforce the judgment against you. This post is designed to empower you as a judgment debtor, providing a helpful guide to understanding the revival process, analyzing the documents you receive, and taking appropriate actions to protect your rights.
What is Judgment Revival and Why Should You Care?
In Illinois, a judgment is a court’s decision that allows a creditor to collect a debt from a debtor. However, judgments don’t last forever. They are only valid for 7 years, after which they become dormant or stale. Creditors can revive a dormant judgment, extending the enforcement period by another 7 years. Understanding the revival process is crucial because if a judgment is revived, the creditor can continue or resume collection actions against you, including wage garnishments, asset discovery citations, and property liens.
It’s important to distinguish this process from the statute of limitations, which limits how long a creditor has to file a lawsuit. In the case of judgment revival, a lawsuit has already been filed, and the creditor has obtained a judgment.
Consumer vs. Non-Consumer Debt Judgments
This article specifically addresses the revival laws for consumer debts only. In Illinois, the enforcement periods for judgments vary based on the type of debt. Non-consumer debt judgments, or business related judgments are governed by different rules. These judgments are subject to a 20-year revival period, allowing for a maximum enforcement duration of up to 27 years, depending on the revival process.
What is Considered Consumer Debt?
Under 735 ILCS 5/2-1303(b)(1), a consumer debt is defined as money or property owed by a person due to something they bought or acquired mainly for personal, family, or household use. This type of debt comes from buying things like:
- Personal items, such as clothes or electronics
- Household goods, like furniture or appliances
- Family expenses, such as school supplies, groceries, or even a family vacation
For example, if you take out a loan to buy a car that you’ll use for yourself and your family, this loan would be considered a consumer debt because it’s for personal or household use. Similarly, most balances you have on a credit card from purchases made for home needs would also fall under consumer debt.
What is Not Considered Consumer Debt?
Some debts don’t qualify as consumer debts, even if they involve an individual person:
- Compensation for bodily injury or death: If the money owed is related to medical compensation, it’s not classified as consumer debt.
- Business-related debts: If the debt is connected to a business or includes a clause that ties both an individual and a business together, it’s not considered consumer debt. This applies even if the business isn’t legally set up under any formal state law.
- The statute specifically uses the term “natural person” to exclude anyone operating as a sole proprietor, under a DBA (doing business as), or as any other type of business entity from the definition of consumer debt. Therefore, debts arising from these business connections are not classified as consumer debts.
In Illinois, consumer debt judgments of $25,000 or less collect interest at a rate of 5% per year until fully paid.
Applicable Statutes: Know the Law
Familiarizing yourself with the statutes governing judgment revival can help you navigate the legal landscape:
- 735 ILCS 5/12-108(a): This statute is your starting point. It states that a judgment is enforceable for 7 years and can be revived at any time within 10 years from the date of entry. This means a consumer judgment can potentially be enforced for up to 17 years if revived before it permanently lapses.
- 735 ILCS 5/2-1602: This statute outlines the process for reviving a judgment. It requires the creditor to file a petition and properly serve you with notice, giving you the opportunity to contest the revival. While non-consumer judgments can be revived within 20 years, consumer debt judgments, as defined in 735 ILCS 5/2-1303(b), must be revived within 10 years of their entry under 735 ILCS 5/2-1602(a-5).
- 735 ILCS 5/2-1303: This statute defines consumer debt as money owed by a natural person for personal, family, or household purposes. A consumer debt judgment refers to a judgment related to these consumer debts, excluding those involving joint liability between an individual and a business.
- 735 ILCS 5/12-101: While primarily dealing with judgment liens on real estate, this statute emphasizes the need to act within the 7-year enforcement window to avoid the lien becoming ineffective.
Judgments Before January 2020 Are Not Covered by the 10-Year Consumer Debt Limit
The 10-year revival rule for consumer debt judgments, signed into law by Illinois Governor J.B. Pritzker in Public Act 101-0168 (House Bill 88), only applies to judgments entered on or after January 1, 2020 per 735 ILCS 5/2-1303(b)(4). For consumer debt judgments entered before this date, 735 ILCS 5/2-1602 still governs, allowing revival up to 27 years if conditions are met. Essentially, until January 1, 2030, both business and consumer judgments in Illinois can be revived under the 20-year rule.
Analyzing the Petition for Revival and Accompanying Documents
When you receive a petition to revive a judgment, it’s important to carefully review every document. Here’s how to break down the key components:
1. The Petition for Revival
- Purpose: The petition is the creditor’s formal request to the court to extend the life of the judgment. Review the petition for any inaccuracies or omissions that could be grounds for contesting it.
- Key Details to Check: Ensure the original judgment date is correctly stated and that the petition has been filed within the appropriate time limit. An incorrect date or filing outside the statutory period can be challenged. Typically, the order of judgment will be attached as an exhibit. Review it to ensure it is authentic and includes all the correct information and dates.
2. Service of Process Affidavits
- Importance of Proper Service: Illinois law mandates that proper notification must be given for both the petition to revive and the accompanying notice, in accordance with 105(b).
- What to Check:
- Service Methods: The petition should be personally served or delivered through a valid substitute method, such as to someone over 13 years old at your residence.
- Authorized Person: Service can also be performed by an officer or an individual over 18 who is not a party to the action. Proof of service must be provided through an affidavit or certification detailing the time, manner, and place of service.
- Prepaid Certified or Registered Mail: If mailed, the petition must be sent by prepaid certified or registered mail with a return receipt requested. Service is only complete upon receipt.
- Publication: If other service methods fail, publication may be used as a last resort, following the required affidavit procedures.
- Summons Not Required: Contrary to common belief, a court summons does not need to accompany the petition to revive. Summonses are used to initiate lawsuits and bring a defendant under the court’s jurisdiction. In revival cases, the lawsuit has already been initiated, often years earlier, so a summons is unnecessary for the revival process.
If service was improper or did not follow these rules, you can file a motion to quash the service. This motion challenges the validity of the revival if the required procedures were not correctly followed.
3. Service, Not Wording of Notice, Critical for Revival
Carefully review the notice that accompanied the petition to revive the judgment to ensure it meets all requirements set forth by Illinois law. The specific rules for notice include:
- Supreme Court Rule 106 Notice of the filing of a petition to revive must be given using the methods outlined in Rule 105.
- Supreme Court Rule 105 While Supreme Court Rule 105 outlines specific procedures for serving notice and including the language to be used in the notice of motion in subsection 105(a), recent court interpretations have emphasized that the critical factor is the method of service rather than the inclusion of specific language in the notice.
- As long as the notice is served in accordance with Rule 105(b) as listed above, the content of the notice does not necessarily need to indicate that additional relief is being sought or that a default judgment may be entered. This is because, in the context of reviving judgments, the court does not view the revival as new relief but rather as a continuation of its jurisdiction over the judgment debtor.
Key Timeframes for Judgment Debtors
Understanding the critical timeframes involved can help you take timely action:
- 7-Year Enforcement Period: After the judgment is entered, the creditor has 7 years to enforce it. After that, the judgment becomes dormant unless revived.
- 10-Year Revival Window: The creditor has 10 years from the date the original judgment was entered to file a petition for revival, but only if the judgement was entered after January 1, 2020, otherwise the deadline is 20 years.
- 30 Days to Respond: If you wish to contest the revival, you typically have 30 days from the date of service to file a response, such as a motion to vacate under or a motion to quash service.
Continuing Wage Garnishment on Dormant Debts
Under certain conditions, even if a consumer debt judgment becomes dormant, enforcement efforts—particularly those tied to wage garnishment—may continue. Pursuant to 735 ILCS 5/12-108(c), if a judgment becomes dormant while wage enforcement proceedings are underway, such enforcement may proceed to completion, provided it is under court supervision. This includes wage deduction orders or turnover orders directed at an employer, garnishee, or other third-party respondent.
Essentially, even if the judgment has technically expired, wage garnishment efforts can legally continue until the entire debt, including interest, is paid in full. However, if the debtor changes jobs or the employment relationship ends, the creditor must revive the judgment to resume garnishment if the judgment has since become dormant. In my opinion, this is where the 10-year limitation period for consumer debt judgments can be especially relevant.
Practical Pointers for Contesting a Judgment Revival
As a debtor, you have several strategies at your disposal to contest the revival of a judgment:
1. Review Prior Payments
- Transaction History: Review all payments, including garnishments, to ensure they were accurately credited, as this could reduce the balance owed or potentially prevent the judgment’s revival. If you’ve filed Chapter 7 or Chapter 13 bankruptcy and received a discharge, check if the debt was included. If so, notify the creditor and the court to prevent further collection actions on the judgment.
2. Challenge the Service of Process
- Why It Matters: If you were not properly served with the petition to revive, the court may not have jurisdiction to revive the judgment.
- Action to Take: File a motion to quash service if you believe the service was improper. This can prevent the revival from being upheld.
3. Examine the Original Judgment
- Grounds for Vacating: If the original judgment was obtained through fraud, mistake, or lack of jurisdiction, you may be able to challenge its validity even after several years.
- Action to Take: Consult with an attorney to explore filing a motion to vacate the original judgment if there are valid reasons to do so.
4. Negotiate with the Creditor
- Potential for Settlement: Creditors may be willing to settle the debt for a reduced amount, particularly if they face the risk of the judgment not being revived. Additionally, if the debt is so substantial that full repayment seems unlikely, creditors might be more open to negotiating a settlement. In my experience, creditors are often willing to consider a compromise under these circumstances.
- Action to Take: Approach the creditor with a settlement offer, which could resolve the matter without further court involvement.
5. File for Bankruptcy if Necessary
- Dischargeable Debts: Some judgments can be discharged in bankruptcy, providing a way to eliminate the debt.
- Action to Take: Speak with a bankruptcy attorney to determine if this option is available and advisable in your situation.
Protecting Your Rights with Expert Help
Dealing with the revival of a judgment can be challenging, but understanding the process, the relevant laws, and your rights as a debtor is crucial. Taking informed and timely action is essential for protecting your interests.
If you’re facing a judgment revival and need professional guidance, consider consulting with Chicago bankruptcy attorney Steven J. Grace. He handles both Chapter 13 and Chapter 7 bankruptcies and offers free consultations to help you explore your options and navigate the complexities of the situation effectively.
