Obtaining a final and enforceable judgment is often just the first phase of the civil litigation process; without effective enforcement and collection, a judgment is merely a piece of paper (or electronic docket entry). This webinar provides an overview of the technical, procedural and strategic considerations necessary to monetize judgments and make litigation worthwhile. Part of the webinar series: NEWBIE LITIGATOR SCHOOL - 101 PART II 2021 See more at https://www.financialpoise.com/webinars/

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Practical and entertaining education for
attorneys, accountants, business owners and
executives, and investors.

4. Disclaimer
The material in this webinar is for informational purposes only. It should not be considered
legal, financial or other professional advice. You should consult with an attorney or other
appropriate professional to determine what may be best for your individual needs. While
Financial Poise™ takes reasonable steps to ensure that information it publishes is accurate,
Financial Poise™ makes no guaranty in this regard.
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5. Meet the Faculty
MODERATOR:
Joelle Shabat - Sugar Felsenthal Grais & Helsinger LLP
PANELISTS:
Stephen L. Brodsky - Mazzola Lindstrom LLP
Marc S. Lichtman – Lichtman Eisen Partners, Ltd.
David Madden - Sugar Felsenthal Grais & Helsinger LLP
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6. About This Webinar – Enforcement: Post-
Judgment Proceedings & Collections
Obtaining a final and enforceable judgment is often just the first phase of the civil litigation
process; without effective enforcement and collection, a judgment is merely a piece of paper
(or electronic docket entry). This webinar provides an overview of the technical, procedural
and strategic considerations necessary to monetize judgments and make litigation worthwhile.
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7. About This Series – Newbie Litigator School –
101 Part II 2021
This series is one of several series (together with the other “Newbie Litigator School” series) that
Financial Poise designed specifically for attorneys who are just starting to get involved in civil litigation or
who could use a refresher on some litigation fundamentals. The purpose is to introduce different
components and phases of litigation, from the basic rules of civil procedure and evidence, to dispositive
motions, through trial, and on to appeal and post-judgment collection work.
Each Financial Poise Webinar is delivered in Plain English, understandable to investors, business owners, and
executives without much background in these areas, yet is of primary value to attorneys, accountants, and other
seasoned professionals. Each episode brings you into engaging, sometimes humorous, conversations designed to
entertain as it teaches. Each episode in the series is designed to be viewed independently of the other episodes so that
participants will enhance their knowledge of this area whether they attend one, some, or all episodes.
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8. Episodes in this Series
#1: Appellate Practice - 101
Premiere date: 10/5/21
#2: Enforcement: Post-Judgment Proceedings & Collections
Premiere date: 11/2/21
#3: Paying for Litigation- Hourly, Contingency, Third Party Financing & More
Premiere date: 12/7/21
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9. Episode #2:
Enforcement: Post-Judgment Proceedings &
Collections
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10. TOPICS
• Final and Valid Judgment
• Wage Deduction Proceeding
• Nonwage Garnishment
• Citation to Discover Assets
• Charging Orders
• Levies Against Personal and Real Property

11. Introductory Notes
While statutory post-judgment enforcement and collection laws and practices may vary by
state, the tools used are generally consistent. As a point of reference, this presentation will
cite post-judgment enforcement law in Illinois.

12. Final and Valid Judgment
• To be enforceable, judgment must be final and valid
• Partial final judgment may be obtained against one or more defendants even though
claims remain pending against other defendants
• Consult FRCP Rule 54(b) and equivalent state law

13. Domesticating Foreign Judgments
• Creditor must domesticate an out-of-state judgment before enforcing
• Once domesticated, judgment will have the same effect as other judgments in that
jurisdiction
• Most states have adopted the Uniform Enforcement of Foreign Judgments Act – allows
creditor to obtain an effective judgment in different state by filing proof of judgment
(certified or exemplified copy), providing last known address of the debtor and creditor, and
paying filing fees

14. Citation to Discover Assets (A)
• Introduction:
✓ Citation to discover assets is the most flexible enforcement tool – it can perform
most actions associated with other post-judgment procedures
✓ More powerful than garnishment because it imposes a continuing lien and is a better
tool to obtain discovery
✓ May be served on debtor or third parties who may have information about debtor’s
assets or owe debtor money
✓ Referred to as a ‘supplementary proceeding’
✓ Allows judgment creditor to go on fishing expedition if creditor reasonably believes
respondent possesses assets of the judgment debtor

15. Citation to Discover Assets (B)
• Form of Citation:
✓ Citation must contain cautionary language informing respondent that failure to
comply is subject to contempt
✓ Citation notice must include language informing the debtor of his or her right to an
exemption hearing and how to exercise this right
✓ Citation must contain a certification of judgment balance
✓ Citation to an individual must be served with citation notice and income and asset
form

16. Citation to Discover Assets (C)
Sample required cautionary language in Illinois:
“IF YOU FAIL TO APPEAR IN COURT AS DIRECTED IN THIS NOTICE, YOU MAY BE
ARRESTED AND BROUGHT BEFORE THE COURT TO ANSWER TO A CHARGE OF
CONTEMPT OF COURT, WHICH MAY BE PUNISHABLE BY IMPRISONMENT IN THE
COUNTY JAIL” 735 ILCS 5/2-1402(a)

17. Citation to Discover Assets (D)
• Issuing and Serving a Citation:
✓ A supplementary proceeding is commenced by the service of citation:
o Service may be made by any method provided by law for service of summons
o By prepaid certified or registered mail addressed to the party, return receipt
requested, showing to whom delivered and the date and address of delivery
o Personal or substitute service is required for a citation issued on an individual debtor
• Where to Issue the Citation
✓ A citation proceeding against a third party must be initiated where that person resides
✓ Proceedings against the judgment debtor typically also must proceed in the same venue
• When and Where the Citation Can be Held:
✓ While citation proceedings are normally held in the courthouse, statutory law may
authorize the judgment creditor to hold the citation proceeding in the judgment creditor’s
attorney’s law office

18. Citation to Discover Assets (E)
• Effect of service of citation:
✓ Lien attaches to all non-exempt property of debtor upon service of citation
✓ Lien reaches all property in the hands of respondent until the citation is discharged
✓ Any transfers of funds after receipt of citation are in violation of citation lien unless
court permission is obtained for their disbursement
• The judgment creditor may request the production of documents in its citation and/or that
recipient of citation appear to testify under oath
• A citation should be not used to determine the whereabouts of debtor
• Any false statements made in a citation proceeding may serve as the basis for perjury
• A citation automatically expires six months after the respondent appears unless the
citation is extended by the court for good cause

19. Citation to Discover Assets (F)
• Steps for preparing/issuing a citation:
✓ Prepare citation and citation notice with a copy for the debtor, court file, counsel’s file,
and third-party respondent (if any)
✓ Have the clerk of the court issue citation
✓ If serving an individual, attach and serve a copy of citation notice and an income and
asset form
✓ If serving a third-party respondent, serve a copy of the citation and citation notice on the
defendant within three days
✓ Serve the citation
✓ On return date, examine debtor-respondent to determine if there are any assets subject
to turnover
✓ If judgment debtor or third party fails to cooperate or appear, court may enter an order for
rule to show cause, an order of contempt, issue an arrest warrant, and order
imprisonment

20. Citation to Discover Assets (G)
• Subpoenas: State law may allow the use of subpoenas in conjunction with a citation. If a
citation is pending to a debtor, a judgment creditor may also issue a subpoena on a bank
for additional documents
• Land trusts: if the debtor has an interest in a land trust, a citation to discover assets validly
served on both the trustee of the land trust and the judgment debtor creates a lien in any
interest held by judgment debtor in that land trust

21. Wage Deduction Proceeding (A)
• Statutory proceeding for payment of judgments by wage earners
✓ Non-exempt wages paid over to creditor by order of the court
✓ Wage deduction order has the same force and effect as a judgment
• Under Illinois law, for instance, creditor may garnish 15% of gross wages or the amount
by which disposable earnings for a week exceed 45 times the greater of the federal and
Illinois minimum wage

22. Wage Deduction Proceeding (B)
• Due process applies to wage deduction proceedings because judgment debtor is being
separated from his or her property
• Due process related issues:
✓ Is there a proper final and enforceable judgment order?
✓ Did the defendant receive a proper statutory wage deduction notice?
✓ Are the judgment creditor’s calculations of court costs, interest, and balance due
correct?
✓ Is the employer’s calculation of sums to be paid over to the judgment creditor
correct?

23. Wage Deduction Proceeding (C)
• Service of a wage deduction summons creates a lien on debtor’s wages from moment of
service on the employer
• Priorities:
✓ Spouse and child support deduction orders have priority over all wage deduction
orders
✓ Multiple wage deductions: honored in the order in which employers receives them
✓ State and federal liens have no particular priority over a wage deduction proceeding
– critical dates are dates of service on employer and dates tax liens were recorded
o IRS tax lien, for instance, is considered perfected on the date the lien is filed
with the county recorder

24. Wage Deduction Proceeding (D)
• If a debtor works for a national employer, but moves out of the state, Illinois courts have
jurisdiction over the employer notwithstanding the lack of ability to garnish wages in an out-
of-state jurisdiction
• However, if the employee/judgment debtor lives in Illinois but works in another state,
federal law requires that the judgment be registered and domesticated in the foreign state

25. Nonwage Garnishment (A)
• Procedures that enable the creditor, or garnishor, to stand in the debtor’s shoes and
recover assets of debtor in the hands of another, the garnishee.
• Two classes of assets:
✓ A debt owed to garnishee
o Debt must be presently due – cannot be debts that are contingent or that
become due in the future
✓ Property belonging to the judgment debtor in the possession of garnishee
o Property sought to be garnished must be of legal, and not equitable (i.e.,
intangible property), character.

26. Nonwage Garnishment (B)
• Other notes:
✓ Garnishment does not permit a judgment creditor to go on a fishing expedition
✓ Garnishment cannot be converted into a citation proceeding
✓ Garnishment lien extends only to those funds in the hands of the garnishee at the
time of service of the garnishment. See, e.g.,735 ILCS 5/12-707(a) in Illinois.
✓ Creditors often prefer using citations to discover assets as opposed to nonwage
garnishments, particularly for payments due to independent contractors

27. Nonwage Garnishment (C)
• Two outcomes on the garnishment return date:
✓ Garnishee has answered the garnishment
✓ Garnishee fails to answer the garnishment
o If garnishee fails to answer, a conditional judgment may be entered against the
garnishee. Creditor then issues a summons on garnishee to give them another
opportunity to respond. If no response prior to the summons’ return date, a final
judgment will be entered against garnishee for the unpaid judgment balance

28. Charging Orders (A)
• A charging order is a mechanism employed to enforce a judgment against a member’s
distributive interest
• A charging order is made on the debtor’s distributive interest in the entity
• It does not reach other payments to the debtor by way of a salary, commissions, or
reimbursements
• Generally, charging order entered after the service of a citation by another creditor has
priority over the citation lien as to the debtor’s distributive interest

29. Charging Orders (B)
• Enforcing a charging order:
✓ Once obtained, a charging order must be enforced by foreclosing on the debtor’s
distributive interest
✓ Purchaser’s rights are determined by the entity’s operating agreement which may or
may not have detrimental provisions such as tax or capital call consequences
✓ Attorneys often use both charging orders and citations due to the limitations of the
lien of the charging over and the expansive lien of the citation to discover assets

30. Levies Against Personal and Real Property (A)
• A levy authorizes the sale of debtor’s property to satisfy a judgment
• Essentially, the sheriff is ordered to seize and sell debtor’s property and account for the
proceeds to the creditor
• Recording a memorandum of judgment with the county recorder establishes a lien
against all real property of the debtor in the county
• A creditor cannot establish a lien on personal property of debtor until certified copy of
judgment is delivered to sheriff

31. Levies Against Personal and Real Property (B)
• Personal property:
✓ To direct a personal property levy, judgment creditor needs two documents: (1)
certified copy of the judgment order, and (2) a completed indemnifying bond with
corporate surety (typically in twice the amount of the judgment and the costs)
✓ The judgment creditor must inform the sheriff where to levy and what to levy on
✓ Date for the sale of levied personal property is set at the sheriff’s office, and the
debtor’s and creditor’s attorneys are given notice by mail
✓ Satisfaction or release of levy – possible returns of service:
o Judgment debtor not found, no property found, released, no part satisfied
o Judgment debtor served, no property found, released, no part satisfied
o Debtor served, property levied, satisfied in part
o Debtor served, property levied, satisfied in full
o Defendant served, no property found, returned at order of judgment creditor, no
part satisfied

32. Levies Against Personal and Real Property (C)
• Real property:
✓ Record a certified final judgment or a memorandum of judgment with the county
recorder in the county where the debtor is believed to own property
✓ Determine whether documents evidence debtor’s ownership of property
✓ Determine whether debtor has equity in the property
✓ Proceed with the levy sale (note: most real property levies never go to sale as the
parties normally settle before the sale date)

33. Levies Against Personal and Real Property (D)
• Real property cont.:
✓ Acts necessary to effect levy and sale:
o Judgment creditor’s counsel prepares a direction to levy and notice of the levy
with sufficient copies for service and delivers them to the sheriff of the county
where the property is located
o Levy must also be served on the judgment debtor
o Notice must be served on the judgment debtor stating he or she must pay the
surplus over and above $15,000 (IL homestead exemption) on the judgment
amount within 60 days, or the premises will be sold
o If judgment debtor pays the balance of the claim, he or she will retain the
property and the sale will be cancelled

34. Levies Against Personal and Real Property (E)
• Real property cont.:
✓ Bidding procedures:
o Judgment creditor has a right to bid whatever portion of the judgment is
appropriate
o Generally, judgment creditor will also submit a separate bid to cover the
homestead exemption
o For example, if the judgment amount was $5,000 and there was only one
homestead, the judgment creditor would bid $5,000, plus $15,000 for the
homestead, for a total of $20,000
✓ At the sale, a certificate of sale will be given to the successful bidder

35. Levies Against Personal and Real Property (F)
• Foreclosure of a Judgment Lien:
✓ In Illinois, for instance, 735 ILCS 5/12-101:
o Authorizes the foreclosure of a judgment lien in the same manner as a
mortgage foreclosure
o Lien may be foreclosed by an action brought in the name of the judgment
creditor or its assignee of record

36. About the Faculty
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37. About The Faculty
Joelle Shabat - Jshabat@sfgh.com
Joelle is currently a litigation associate in Sugar Felsenthal Grais & Helsinger LLP’s Chicago office. She
has represented a variety of business entities and individuals throughout the life of a case, from inception
through trial and appeal.
Throughout her practice, Joelle works to develop close relationships with her clients, guide them through
every step of litigating a case, continually evaluate their objectives, and collaborate with them to obtain
positive results.
The versatility and resourcefulness Joelle has gained by litigating a wide variety of matters has brought
insight that spans across diverse industries and subjects.
To read more about Joelle, please visit: https://www.financialpoise.com/financial-poise-faculty/joelle-shabat/
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38. About The Faculty
Stephen L. Brodsky- stephen@mazzolalindstrom.com
Stephen L. Brodsky is a Partner of Mazzola Lindstrom, LLP and is resident in the firm’s New York City office. Stephen
has practiced complex commercial litigation for more than twenty-five years. Over his career, Stephen has litigated
significant, high dollar matters in federal and state courts across the United States. He has argued at the trial and
appellate levels and served as trial counsel in both bench and jury trials. He also represents his clients in arbitrations,
mediation, and administrative proceedings. Finally, he resolves his clients’ matters through negotiations and without
formal litigation. He is known for his creative problem solving and thoughtful advocacy. He is rated AV Preeminent by his
clients and peers, the highest professional rating. Stephen received his J.D. from Columbia Law School, where he was a
Harlan Fiske Stone Scholar and member of the Journal of Law and Social Problems. He graduated from University of
Pennsylvania, summa cum laude, where he studied Philosophy. In addition to his practice, Stephen serves in several
leadership roles in the New York State Bar Association and the American Bar Association. He also writes and speaks on
legal and business-related topics. He has been published in journals throughout the country and presented CLEs and
seminars to fellow attorneys and to business owners and executives. On a personal note, Stephen is committed to
charitable work. He is a Director of and Counsel to Autism Communities, a nonprofit establishing supportive residences,
with social and vocational opportunities, for adults with autism in New York. He is also a volunteer New York State
Ambassador for Autism Speaks, a national organization dedicated to autism research, awareness and advocacy.
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39. About The Faculty
Marc S. Lichtman - MLichtman@LichtmanPartners.com
Marc Lichtman, is an Attorney licensed to practice law in the states of Illinois and Florida. He was admitted to the Illinois Bar in 1985 and
graduated from DePaul University College of Law. In 1989, Marc earned an LL.M. transaction in Taxation.
Marc graduated from Indiana University School of Business in 1980, earning a double major in Real Estate and Finance. At Indiana, he
obtained the educational background to analyze business transactions and financial records. After college, Marc worked for the Federal
Reserve Bank of Chicago as a Bank Holding Company Examiner where he honed his ability to review and analyze financial statements,
company books, and appraise real estate.
After law school, Marc worked in various law firms handling real estate and business transactions and commercial litigation. He was able
to use his LL.M. Degree in Taxation, Business Degree concentrating in Real Estate and Finance and his experience from working at the
Federal Reserve Bank of Chicago to aggressively represent clients in both a transactional and litigation settings. He has found his
background to be very helpful in the post judgment collection area to find improperly transferred assets or schemes to defraud creditors.
Marc has held public office as the Chairman and Board Member of the City of Highland Park Zoning Board of Appeals. Marc has
graduated from the National Institute of Trial Advocacy Trial Skills Program, Deposition Skills Program, and has attended their seminar
on Expert Witnesses. Currently, he is a member of the Legislative Committee of the International Association of Commercial Collectors.
Outside of the law practice, Marc’s interests are restoring vintage bicycles, cycling, reading, comedy and anything related to Agent
007—James Bond.
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40. About The Faculty
David M. Madden - Dmadden@sfgh.com
David Madden’s practice includes the representation of business and individual clientele in
complex corporate transactions, business and consumer litigation, commercial bankruptcy
and estate planning.
David’s broad experience enables him to serve his clientele in all facets, representing
businesses and business owners in both the courtroom and the boardroom. David has
counseled his clients in matters ranging from wills and trusts, shareholder agreements,
negotiation of commercial leases, insolvency and debt collection as well as employee non-
competition litigation. His wide breadth of experience has made David an asset to his
clientele in numerous multi-disciplinary issues.
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41. Questions or Comments?
If you have any questions about this webinar that you did not get to ask during the live
premiere, or if you are watching this webinar On Demand, please do not hesitate to email us
at info@financialpoise.com with any questions or comments you may have. Please include
the name of the webinar in your email and we will do our best to provide a timely response.
IMPORTANT NOTE: The material in this presentation is for general educational purposes
only. It has been prepared primarily for attorneys and accountants for use in the pursuit of
their continuing legal education and continuing professional education.
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42. About Financial Poise
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