If the goods or chattels sold to satisfy the judgment have been attached by another creditor or seized on another judgment either by the same or any other officer, or if before the payment of the residue, after the satisfaction of the judgment to the debtor, another attachment or judgment against the judgment debtor is delivered to the officer who made the sale, the proceeds of the sale shall be applied to the discharge of the several judgments in the order in which the respective attachments or judgments become a lien or are entitled by law to share, and the residue, if any, shall be returned to the debtor or his or her assigns.
12-169.Marshalling proceeds.
Article XII. Judgments - Enforcement · Part 1. In General · Not amended since adoption on record · Last verified July 20, 2026
In one sentenceSection 12-169 requires proceeds from a sale of goods subject to a competing attachment or judgment to be divided among the competing claims in lien priority order, with any leftover paid to the debtor.
Full Text of 735 ILCS 5/12-169
Plain-English Summary
Goods sold to satisfy one judgment can be tangled up with other creditors' claims. This section addresses that overlap where the goods sold have been attached by another creditor, or seized under another judgment by the same or a different officer, or where another attachment or judgment against the debtor reaches the selling officer before the residue is paid over to the debtor.
In any of those situations, the sale proceeds are applied to discharge the several judgments in the order in which the respective attachments or judgments became a lien, or as they're otherwise entitled by law to share. Only after those competing claims are satisfied does any residue go back to the debtor or the debtor's assigns.
Frequently Asked Questions
What triggers the marshalling rule in Section 12-169?
The sold goods being attached by another creditor, seized on another judgment, or another attachment or judgment reaching the selling officer before the residue is paid to the debtor.
In what order are proceeds distributed among competing claims?
In the order the attachments or judgments became a lien, or as they are otherwise entitled by law to share.
Who gets any money left after the competing judgments are paid?
The debtor, or the debtor's assigns.
Does it matter whether the same officer or a different officer handled the competing claim?
No, the rule applies whether the attaching or seizing officer was the same one or a different one.
Why does this rule matter to a judgment creditor?
It tells a creditor whose judgment competes with others how the sale proceeds split, based on lien priority rather than which creditor's sale generated them.
Amendment History
(Source: P.A. 82-280.)
Source & verification. Section text and amendment history are
reproduced verbatim from the Illinois Compiled Statutes, published by the
Illinois Compiled Statutes, Illinois General Assembly / Legislative Reference Bureau. Last verified July 20, 2026.
· Official source
Also known as: marshalling proceeds illinois judgment salecompeting judgment liens proceeds illinoisdividing sale proceeds multiple creditors illinois