In general, your bank should freeze accounts identified in a citation to discover assets for six months from the date your bank responds to the citation, unless you receive notice from either party that the proceedings have been terminated or extended.

Typically, a citation to discover assets includes language ordering the respondent (in this case, your bank) to freeze an account until further order of the court or the termination of the proceeding, whichever occurs first. Under the Illinois Supreme Court Rules, such proceedings automatically terminate six months after your first personal appearance, which courts have interpreted to include filing a written response to a citation.

The court may extend the proceedings “as justice may require.” However, at least one court in Illinois has determined that a third party respondent to a citation to discover assets is under no obligation to monitor the court proceedings for possible extensions. Respondents generally may rely on the six-month deadline, absent notice of termination or extension from either party. Therefore, your bank should freeze accounts pursuant to a citation to discover assets for six months from the date of your response — unless you receive notice from either party that the proceedings have been terminated or extended.

For resources related to our guidance, please see:

• Illinois Code of Civil Procedure, 735 ILCS 5/2-1402(f)(1) (“The citation may prohibit the party to whom it is directed from making or allowing any transfer or other disposition of, or interfering with, any property not exempt from the enforcement of a judgment therefrom, a deduction order or garnishment, belonging to the judgment debtor or to which he or she may be entitled or which may thereafter be acquired by or become due to him or her, and from paying over or otherwise disposing of any moneys not so exempt which are due or to become due to the judgment debtor, until the further order of the court or the termination of the proceeding, whichever occurs first. . . .”)

• Illinois Code of Civil Procedure, 735 ILCS 5/2-1402(m) (“The lien established under this Section does not affect the rights of citation respondents in property prior to the service of the citation upon them and does not affect the rights of bona fide purchasers or lenders without notice of the citation. The lien is effective for the period specified by Supreme Court Rule.”)

• Illinois Supreme Court Rule 277(f) (“When Proceeding Terminated. A proceeding under this rule continues until terminated by motion of the judgment creditor, order of the court, or satisfaction of the judgment, but terminates automatically 6 months from the date of (1) the respondent’s first personal appearance pursuant to the citation or (2) the respondent’s first personal appearance pursuant to subsequent process issued to enforce the citation, whichever is sooner. The court may, however, grant extensions beyond the 6 months, as justice may require. Orders for the payment of money continue in effect notwithstanding the termination of the proceedings until the judgment is satisfied or the court orders otherwise.”)

• Windcrest Dev. Co., Inc. v. Giakoumis, 834 N.E.2d 610, 614 (Ill. App. 2d Dist. 2005) (“The record reveals that citation respondent first appeared pursuant to the citation . . . when it filed its written answer.”)

• Windcrest Dev. Co., Inc. v. Giakoumis, 834 N.E.2d 610, 615 (Ill. App. 2d Dist. 2005) (“[T]here is no language in section 2–1402(a) of the Code or Rule 277(f) that requires a citation respondent to monitor the citation proceedings. We conclude that, under the present circumstances, citation respondent properly relied on its belief that the citation proceedings automatically terminated pursuant to Rule 277(f). We are satisfied that citation respondent properly performed its duties, and it would be unjust for citation respondent to suffer a penalty for relying in good faith on the automatic termination of the citation when it had no knowledge that the citation proceedings had been continued.”)