Prairie Production Credit Ass'n v. Bianucci

600 N.E.2d 523, 234 Ill. App. 3d 1072, 175 Ill. Dec. 592
CourtAppellate Court of Illinois
DecidedOctober 14, 1992
Docket4-92-0201
StatusPublished
Cited by5 cases

This text of 600 N.E.2d 523 (Prairie Production Credit Ass'n v. Bianucci) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Prairie Production Credit Ass'n v. Bianucci, 600 N.E.2d 523, 234 Ill. App. 3d 1072, 175 Ill. Dec. 592 (Ill. Ct. App. 1992).

Opinions

PRESIDING JUSTICE GREEN

delivered the opinion of the court:

Section 12 — 101 of the Code of Civil Procedure (Code) states that “[a] judgment is not a lien on real estate for longer than 7 years from the time it is entered or revived” (emphasis added) (Ill. Rev. Stat. 1989, ch. 110, par. 12—101). At common law, the method for reviving judgments was through a proceeding in scire facias (see Smith v. Carlson (1956), 8 Ill. 2d 74, 132 N.E.2d 513). Section 2-1601 of the Code abolished that procedure and states that relief formerly obtained in such a proceeding may be granted through “a petition filed in the case in which the original judgment was entered.” Ill. Rev. Stat. 1989, ch. 110, par. 2—1601.

This case involves a proceeding on a motion to revive a judgment brought by a judgment creditor against judgment debtors who had been discharged in bankruptcy after the lien of the judgment had attached to defendants’ residential property. That property was later abandoned by the bankruptcy trustee. The principal questions are (1) whether a motion to revive a judgment ever lies after the judgment debtors have, subsequent to the judgment, been discharged in bankruptcy; (2) if the motion is permissible, what issues are to be considered; and (3) whether, in any event, the judgment lien involved here was defeated or rendered void by the laws of bankruptcy or State property laws. We hold: (1) such a motion does lie where the lien of the judgment is preserved; (2) the issues presented on the motion are somewhat limited but included consideration of the enforceability of the judgment lien involved, i.e., whether execution can be obtained thereon; and (3) under the facts alleged here, State laws did not defeat or void the judgment lien. We defer to a proceeding in the Federal courts to first determine the operation of bankruptcy law upon plaintiff’s judgment lien.

On December 10, 1984, plaintiff Prairie Production Credit Association (PCA) obtained a judgment by confession on a note against defendants Henri J. and Barbara J. Bianucci in the circuit court of De Witt County. The judgment was in the sum of $67,864.14 plus costs which included a $1,400 attorney fee. Ten days thereafter, on December 20, 1984, defendants filed a voluntary bankruptcy petition in the United States District Court for the Central District of Illinois, and on October 28, 1985, they were discharged from the bankruptcy. On September 19, 1991, proceeding pursuant to section 2 — 1601 of the Code, plaintiff filed a motion in the case in which the judgment was entered seeking to revive the December 10, 1984, judgment.

Defendants filed a response to plaintiff’s motion to revive the judgment. They contended (1) the stated amount of the judgment was inaccurate; (2) various payments further reduced the amount owed; (3) an unsecured claim filed in the bankruptcy by plaintiff had been allowed; (4) all of defendants’ real estate had been liquidated in the bankruptcy except for the residential property; (5) at the time of the bankruptcy, no equity existed in the residential property over and above (a) the amount due on a mortgage which was prior to plaintiff’s judgment, (b) the lien for taxes, and (c) defendants’ homestead exemption. The response also stated that the residential premises had been sold.

The response was supported by the affidavit of the trustee in bankruptcy, who stated he had abandoned the residential property, and at the time of the bankruptcy, that property had no value “exceeding the enforceable encumbrances and the homestead exemption.” In regard to the latter statement, the affidavit differed from the response in that the response stated the residential property had no value after considering various liens prior to plaintiff’s lien while the affidavit said that the lack of equity existed after considering all “enforceable encumbrances,” which could have included plaintiff’s judgment lien.

A hearing was held at which no evidence was introduced. The circuit court concluded it could not properly consider the potential enforceability of the judgment sought to be revived in determining whether to allow revival. On February 11, 1992, the circuit court entered an order which found the judgment was “still in force and effect, [had] not [been] reversed or set aside and [had] not been paid by defendants.” The court then ordered the judgment revived and ordered execution to issue.

Defendants have appealed, contending, as we have indicated, that (1) their discharge in bankruptcy was, of itself, sufficient to prohibit the circuit court from reviving the judgment; (2) even if the judgment could be revived on an in rem basis in order to enforce the lien of the judgment, the court erred in refusing to consider the enforceability of the judgment lien; and (3) the laws of bankruptcy and Illinois property law rendered the judgment lien unenforceable.

Plaintiff agrees that defendants’ discharge in bankruptcy discharged them from any personal liability on the judgment but contends that the existence of a judgment lien against defendants’ residential real estate permitted the court to revive the judgment as far as the lien was concerned. Plaintiff maintains the court correctly refused to consider the enforceability of the judgment lien and contends that, in any event, the question of the validity of the lien under bankruptcy law should not be considered, because defendants have attempted to open up the bankruptcy proceedings to get the bankruptcy court to consider the validity of the lien. Although the bankruptcy court has refused to reopen the proceeding, plaintiff maintains that since that order is still subject to the Federal appeals process, neither the trial court nor this court should consider that matter.

In support of their position that the discharge in bankruptcy prevents any revival of the pre-bankruptcy judgment, defendants rely upon Trustees of Schools of Township No. 20, Range No. 5 v. Chamberlain (1948), 334 Ill. App. 83, 78 N.E.2d 525, and Martinez v. Cogan (1943), 320 Ill. App. 468, 51 N.E.2d 595. Neither case gives strong support to defendants’ theory. Rather, we conclude the proper rule is that set forth in Farmers State Bank v. Hansen (1990), 196 Ill. App. 3d 295, 553 N.E.2d 751, Rochelle State Bank v. Gavic (1979), 70 Ill. App. 3d 42, 388 N.E.2d 436, and Avco Finance Co. v. Erickson (1971), 132 Ill. App. 2d 868, 270 N.E.2d Ill.

In Chamberlain, a suit was brought to revive a judgment against joint judgment debtors, one of whom had been discharged in bankruptcy. The circuit court revived the judgment only against the non-bankrupt defendant. The latter appealed contending that the court erred in not also entering a judgment of revival against the bankrupt. The appellate court affirmed, holding: (1) under bankruptcy law one joint debtor was liable for the whole debt when the other goes bankrupt; and (2) whether the judgment of revival was in error because the judgment was not revived as to the bankrupt with a stay against enforcement as to the bankrupt did not need to be decided as the bankrupt was not complaining.

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Related

First National Bank in Toledo v. Adkins
650 N.E.2d 277 (Appellate Court of Illinois, 1995)
In Re Jones
166 B.R. 657 (N.D. Illinois, 1994)
Prairie Production Credit Ass'n v. Bianucci
600 N.E.2d 523 (Appellate Court of Illinois, 1992)

Cite This Page — Counsel Stack

Bluebook (online)
600 N.E.2d 523, 234 Ill. App. 3d 1072, 175 Ill. Dec. 592, Counsel Stack Legal Research, https://law.counselstack.com/opinion/prairie-production-credit-assn-v-bianucci-illappct-1992.