102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3876

 

Introduced 2/22/2021, by Rep. La Shawn K. Ford

 

SYNOPSIS AS INTRODUCED:
 
735 ILCS 5/2-1303  from Ch. 110, par. 2-1303
735 ILCS 5/12-109  from Ch. 110, par. 12-109

    Amends the Code of Civil Procedure. Deletes language providing that the interest on judgments arising by operation of law from child support orders shall be calculated by applying one-twelfth of the current statutory interest rate as provided in the Code to the unpaid child support balance as of the end of each calendar month. Provides instead that every judgment arising by operation of law from a child support order shall not bear interest. Makes corresponding changes.


LRB102 04298 LNS 14316 b

 

 

A BILL FOR

 

HB3876LRB102 04298 LNS 14316 b

1    AN ACT concerning civil law.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Code of Civil Procedure is amended by
5changing Sections 2-1303 and 12-109 as follows:
 
6    (735 ILCS 5/2-1303)  (from Ch. 110, par. 2-1303)
7    Sec. 2-1303. Interest on judgment.
8    (a) Except as provided in subsection (b) and except for
9judgments arising by operation of law from a child support
10order, judgments recovered in any court shall draw interest at
11the rate of 9% per annum from the date of the judgment until
12satisfied or 6% per annum when the judgment debtor is a unit of
13local government, as defined in Section 1 of Article VII of the
14Constitution, a school district, a community college district,
15or any other governmental entity. When judgment is entered
16upon any award, report or verdict, interest shall be computed
17at the above rate, from the time when made or rendered to the
18time of entering judgment upon the same, and included in the
19judgment. Interest shall be computed and charged only on the
20unsatisfied portion of the judgment as it exists from time to
21time. The judgment debtor may by tender of payment of
22judgment, costs and interest accrued to the date of tender,
23stop the further accrual of interest on such judgment

 

 

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1notwithstanding the prosecution of an appeal, or other steps
2to reverse, vacate or modify the judgment.
3    (b)(1) As used in this Section:
4    "Consumer debt" means money or property, or the
5equivalent, due or owing, or alleged to be due or owing, from a
6natural person by reason of a transaction in which property,
7services, or money is acquired by that natural person
8primarily for personal, family, or household purposes.
9    "Consumer debt judgment" means a judgment recovered in any
10court against one or more natural persons arising out of
11consumer debt. "Consumer debt judgment" does not include any
12compensation for bodily injury or death, nor any judgment
13entered where the debt is guaranteed by or contains a joint and
14several liability provision between a natural person and a
15business, whether or not that business is legally constituted
16under the laws of this State or any other state.
17    (2) Notwithstanding subsection (a), consumer debt
18judgments of $25,000 or less shall draw interest from the date
19of the judgment until satisfied at the rate of 5% per annum.
20    (3) The judgment debtor may, by tender of payment of
21judgment, costs, and interest accrued to the date of tender,
22stop the further accrual of interest on the consumer debt
23judgment, notwithstanding the prosecution of an appeal, or
24other steps to reverse, vacate, or modify the judgment.
25    (4) This subsection applies to all consumer debt judgments
26entered into after the effective date of this amendatory Act

 

 

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1of the 101st General Assembly.
2(Source: P.A. 101-168, eff. 1-1-20.)
 
3    (735 ILCS 5/12-109)  (from Ch. 110, par. 12-109)
4    Sec. 12-109. Interest on judgments.
5    (a) Every judgment except those arising by operation of
6law from child support orders shall bear interest thereon as
7provided in Section 2-1303.
8    (b) Every judgment arising by operation of law from a
9child support order shall not bear interest as provided in
10this subsection. The interest on judgments arising by
11operation of law from child support orders shall be calculated
12by applying one-twelfth of the current statutory interest rate
13as provided in Section 2-1303 to the unpaid child support
14balance as of the end of each calendar month. The unpaid child
15support balance at the end of the month is the total amount of
16child support ordered, excluding the child support that was
17due for that month to the extent that it was not paid in that
18month and including judgments for retroactive child support,
19less all payments received and applied as set forth in this
20subsection. The accrued interest shall not be included in the
21unpaid child support balance when calculating interest at the
22end of the month. The unpaid child support balance as of the
23end of each month shall be determined by calculating the
24current monthly child support obligation and applying all
25payments received for that month, except federal income tax

 

 

HB3876- 4 -LRB102 04298 LNS 14316 b

1refund intercepts, first to the current monthly child support
2obligation and then applying any payments in excess of the
3current monthly child support obligation to the unpaid child
4support balance owed from previous months. The current monthly
5child support obligation shall be determined from the document
6that established the support obligation. Federal income tax
7refund intercepts and any payments in excess of the current
8monthly child support obligation shall be applied to the
9unpaid child support balance. Any payments in excess of the
10current monthly child support obligation and the unpaid child
11support balance shall be applied to the accrued interest on
12the unpaid child support balance. Interest on child support
13obligations may be collected by any means available under
14federal and State law, rules, and regulations providing for
15the collection of child support.
16(Source: P.A. 101-336, eff. 8-9-19.)