Most of our blog posts focus on individuals dealing with personal debt, but this one addresses an issue that often surprises small business owners: receiving a Citation to Discover Assets to Debtor’s Employer. Even if the debt is not yours, ignoring or mishandling this court order can result in serious legal and financial consequences for your company.
In this post, you’ll learn:
- What a Citation to Discover Assets to Debtor’s Employer is.
- Why it matters for your business.
- How to correctly fill out and submit the required forms.
By the end, you’ll understand your legal obligations, how to avoid costly penalties, and what to do if you run into complications.
What Is a Citation to Discover Assets to Debtor’s Employer?
A Citation to Discover Assets is a legal tool creditors use to find out if a person who owes them money (the “debtor”) has wages or assets that can be taken to satisfy a court judgment. When this citation is sent to an employer, the employer must provide certain information about the debtor’s job status and wages. This helps the court determine whether wage garnishment or other methods of collecting payment are possible.
Your Responsibility as the Employer
- Responding is mandatory. Even if the debt doesn’t belong to you, the court requires any employer who receives this citation to answer it.
- Deadlines matter. You typically have 14 to 30 days to respond, depending on state rules.
- Serious consequences for ignoring. Failure to comply can lead to conditional judgments, sanctions, or even contempt of court.
Do You Need to Attend Court?
When you receive a Citation to Discover Assets to Debtor’s Employer, the document will tell you if you must appear in court. Sometimes you are required to attend a hearing in person; other times, you can appear by phone or video. In many Illinois courts, you may choose to attend either in person or remotely (often by Zoom). Check the citation for:
- In-Person Attendance. The citation will list the date, time, and courtroom address.
- Remote Attendance. If you can attend by phone or video, look for instructions on how to do so. You can also contact the local Circuit Clerk if you have questions.
Regardless of whether a court hearing is required, you must complete and file the Answer to Citation Proceeding form included with the citation. If you file this form with the Circuit Clerk Court before the specified deadline and provide a copy to the creditor, appearing in court is typically not necessary unless you have specific questions or concerns you wish to address directly with the judge.
How to Fill Out the Answer to Citation Proceeding Form
The attached Answer to Citation Proceeding form is where you provide details about the employee in question and their wages. Below are the main steps:
- Confirm Employment Status
- Indicate whether the individual is currently employed by your business.
- If they are not employed, note their last day of work.
- If they are seasonal or on leave (but expect to return), fill out the form as if they are still employed.
- Provide Wage and Garnishment Details
- List any existing wage garnishments (for example, child support or other court orders).
- Include case numbers if applicable.
- If any of the employee’s income is protected from garnishment (like disability or retirement benefits), be sure to mention it.
- Pay Frequency
- State how often you pay the employee (e.g., weekly, bi-weekly, monthly).
- This information helps calculate the garnishment amount based on tables provided in the citation or in Illinois law.
- Calculate the Garnishment Amount
- Carefully follow the instructions on the form for lines A-M.
- Refer to the exempt wages table to calculate the correct amount for Line G. Ensure that you are using the table corresponding to the correct year and matching the employee’s pay frequency (e.g., weekly, bi-weekly, or monthly) to avoid errors.
- If you scroll down, you’ll find a clear example along with an easy-to-use wage garnishment calculator.
- If your final calculation is negative, you cannot garnish any wages. If it’s positive, that is the amount you must set aside until the court orders you to pay it over to the creditor or until the citation is dismissed.
Need Help?
Filling out the form correctly and on time is crucial to avoid legal risks. If you’re unsure, consult an attorney. Creditors cannot help and will likely direct you to hire legal counsel, as they are prohibited from providing assistance due to liability concerns and appearance of impropriety.
How to E-File Your Forms
Most people in Illinois file their documents electronically using Odyssey eFileIL. Here’s what you need to know:
- Visit EFILE ILLINOIS for direct access to the e-filing system.
- Follow the detailed instructions and watch how-to videos.
- Avoid using a cell phone for e-filing; a computer or laptop works best.
What Happens Next?
After you submit your answer:
- Garnishment Order
- If the court orders a garnishment, you must send the withheld amounts to the creditor every pay period until the debt is paid or until the court tells you to stop.
- The garnishment order will be mailed directly to the employer. Do not send any money to the creditor until the official garnishment order has been officially served to you as the employer.
- If your employee’s pay varies, you must recalculate each pay period using the same method you used on the form.
- Dismissal of Citation
- If the court finds no grounds for garnishing wages (for instance, if the debtor no longer works for you or if their wages are fully exempt), the citation may be dismissed.
Either way, stay informed and follow any updates or instructions the court sends you.
What If You Ignore the Citation?
Failing to respond to a Citation to Discover Assets to Debtor’s Employer can lead to serious legal consequences for your business. Here are two critical outcomes to be aware of:
Conditional Judgment
If an employer fails to respond to a Citation to Discover Assets by the required deadline, the court may issue a conditional judgment. This judgment assumes that the employer possesses funds or wages that could satisfy the debtor’s debt.
A conditional judgment acts as a warning or preliminary step before a final judgment is entered. Once the court enters a conditional judgment, the employer typically has 30 days to file a response or appear in court. Failure to do so may result in the court converting the conditional judgment into a final judgment, holding the employer legally responsible for paying the debtor’s debt up to the amount of the judgment.
To avoid this outcome, the employer must respond promptly, either by providing the required information or by appearing in court to explain why they should not be held liable.
Rule to Show Cause
Another consequence of failing to respond to a citation is a Rule to Show Cause, which is a court order requiring the employer to appear at a future date and time to explain why they have not complied with the citation or a prior court order. If the employer cannot provide a valid explanation, such as proof of a misunderstanding or improper service, the court may take serious action, including:
- Holding the employer in contempt of court, which can result in fines, penalties, or even jail time in cases of willful non-compliance.
- Issuing an arrest warrant, known as a body attachment, if the employer fails to appear at the Rule to Show Cause hearing. This could lead to the employer being taken into custody and potentially spending a night in jail for failing to respond to the citation.
As an attorney, I’ve seen cases where police have escorted heads of HR or business owners to court after missing deadlines or ignoring citations. If you receive a Rule to Show Cause, take it very seriously. You must appear, whether in person or via Zoom, to explain your situation to the judge. If you need additional time to comply or were not properly served with the notice, these explanations must be made directly to the court. Ignoring this order will only escalate the consequences.
