Any small business owner can tell you that collecting overdue receivables is a major hassle.  Sometimes, the amount at issue doesn't justify hiring an attorney.  So,

what do you do?  Write off the uncollectable account or proceed in court on your own?  What if your small business is sued in Small Claims Court, can you represent

yourself?  The answer depends on the amount in controversy and the type of business structure under which you operate.    

Under Illinois Supreme Court Rule 281, Small claims matters are limited to claims of $10,000 or less, exclusive of interest and costs.  Notably, a corporation cannot

appear as a claimant unless represented by counsel.  However, a corporation can defend itself, provided the amount at issue is less than $10,000, and it does not

wish to assert a counterclaim. 

In summary, a corporation will need to retain counsel to initiate any collection action in the Circuit Court, regardless of the amount at issue.  However, if a small

business is sued in Small Claims Court, the owner can usually represent the company (even if it is a corporation) provided that it will not file a counterclaim and the

amount in controversy remains at $10,000 or less.

Contact us at 312-419-9599 to discuss your collections issues. 

Chicago - Roth Law Group Managing Partner Karl W. Roth has been named to the Board of Directors of the Wayne Wright American Legion Post 1052.  Post 1052 is

located in Chicago, Illinois and its membership supports Veterans and local charities throughout the Greater Chicagoland area. 

Roth, a former Marine Major and KC130 Pilot, has been a member of Post 1052 since returning from service in Operation Iraqi Freedom. 

Roth Law Group is a proud supporter of The Wounded Warrior Project.     

Suppose you obtain a judgment for money damages, either following trial or by default, what's next?  Most likely, the judgment debtor isn't going to hand you a check

on the way out of the courthouse.  And should the debtor claim he/she is unable to pay the judgment, you would be well served to verify this information.  Enter the

Citation to Discover Assets.

Creditors must obtain leave of court to issue a Citation to Discover Assets and the judgment debtor needs to be advised of his/her rights.  The Citation is held under

oath and usually in the presence of a court reporter.  During the Citation, the judgment debtor will be required to produce copies of documents evidencing their

financial condition.  These usually include tax returns, bank statements and any other information regarding assets owned by the debtor.  Once identified, the creditor

can move to lien the debtor's property and eventually seek a turnover order from the court, thus effectively taking control of the given assets. 

Harsh penalties are possible for judgment debtors who fail to to comply with court orders setting Citations, so it is a post-judgment tool with teeth.

Contact us today for a free consultation at 312-419-9599 to discuss your collection issues.