Yes, under the Illinois Supreme Court’s order, we believe depository institutions should release from a hold up to a total of $4,000 in funds deposited into a consumer account. In your hypothetical, an additional $1,000 (the remainder of the order’s $4,000 exemption amount) should be released back to the debtor. Once a total of $4,000 has been released back to the debtor, your financial institution should freeze subsequently deposited funds exceeding that $4,000 amount to satisfy the citation to discover assets.

Under Illinois law, a citation to discover assets creates a continuing lien that applies to property acquired by the debtor after the citation is served. Accordingly, the Illinois Supreme Court’s order provides that a citation to discover assets served on a consumer debtor does not apply to the first $4,000 of a judgment debtor’s property in cases where the value of the debtor’s account “exceeded $4,000 . . . any time after a citation was served.”

For resources related to our guidance, please see:

• Illinois Supreme Court, M.R. 30370, In re: Illinois Courts Response to COVID-19 Emergency – Impact on Post-Judgment Proceedings (April 24, 2020) (“With respect to all Covered Supplemental Proceedings in which a summons or  citation  directed  to  a  depository  financial  institution  was  served  after  March 8, 2020, or had an original return date between March 8, 2020, and the date of termination of the Gubernatorial Disaster Proclamations:

  a. If the Garnishee or Citation Respondent holds personal property of a judgment  debtor  who  is  a  natural  person,  other  than  in  a  business  account, and the value of that property exceeded $4,000 (the amount of the personal property exemption contained in 735 ILCS 5/12-705 and  735  ILCS  5/2-1402(b)(1))  when  a  garnishment  summons  was  served, or any time after a citation was served, the lien imposed by 735 ILCS 5/12-707 or 735 5/2-1402(m), respectively, shall not apply to $4,000 of the judgment debtor’s property held by the Garnishee or Citation Respondent,  and  the  Garnishee  or  Citation  Respondent  shall release to the judgment debtor property valued at $4,000 that the Garnishee or Citation Respondent may have frozen, withheld, or seized.

  b. If the Garnishee or Citation Respondent holds personal property of a judgment  debtor  who  is  a  natural  person,  other  than  in  a  business  account,  and  subparagraph  (a)  is  inapplicable,  the  Garnishee  or  Citation  Respondent  shall  release  to  the  judgment  debtor  any  property  of  the  judgment  debtor  that  the  Garnishee  or  Citation  Respondent may have frozen, withheld, or seized.”)
   

• Illinois Code of Civil Procedure, 735 ILCS 5/12-707(a) (“To the extent of the amount due upon the judgment and costs, the garnishee shall hold, subject to the order of the court any non-exempt indebtedness or other non-exempt property in his or her possession, custody or control belonging to the judgment debtor or in which the judgment debtor has any interest. The judgment or balance due thereon becomes a lien on the indebtedness and other property held by the garnishee at the time of the service of garnishment summons and remains a lien thereon pending the garnishment proceeding.”)
   
• Illinois Code of Civil Procedure, 735 ILCS 5/2-1402(m)(2) (A citation to discover assets “becomes a lien . . . (2) When the citation is directed against a third party, upon all personal property belonging to the judgment debtor in the possession or control of the third party or which thereafter may be acquired or come due the judgment debtor and comes into the possession or control of the third party to the time of the disposition of the citation.”)

• 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.”)