Article XII. Judgments - Enforcement · Part 1. In General · Not amended since adoption on record · Last verified July 20, 2026
In one sentenceSection 12-178 lists five situations where the set-off allowed under Sections 12-176 and 12-177 does not apply: mismatched capacities, a prior good-faith assignment, partial overlap among multiple creditors or debtors, and the attorney's fee portion of a judgment.
Full Text of 735 ILCS 5/12-178
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Such set-off shall not be allowed in the following cases: 1. When the creditor in one of the judgments is not in the
same capacity and trust as the debtor in the other. 2. When the sum due on the first judgment was lawfully and
in good faith assigned to another person, before the creditor in the second judgment became entitled to the sum due thereon.
3. When there are several creditors in one judgment, and the sum due on the other is due from a part of them only.
4. When there are several debtors in one judgment, and the sum due on the other is due to a part of them only.
5. It shall not be allowed as to so much of the first judgment as is due to the attorney in that action for his or her fees and disbursements therein.
Plain-English Summary
Set-off between judgments isn't unlimited, and this section marks its boundaries. It bars set-off when the creditor in one judgment holds it in a different capacity or trust than the debtor does in the other, since the two obligations don't run between the same real parties in interest.
It also bars set-off when the sum due on the first judgment was already, lawfully and in good faith, assigned to someone else before the creditor in the second judgment became entitled to that sum. And it bars set-off, as to the mismatched portion, when one judgment has several creditors or several debtors and the other judgment is owed by or to only some of them, since the parties on each side don't fully line up.
Finally, the section protects the winning party's attorney: set-off isn't allowed as to the part of the first judgment that's due to that attorney for fees and disbursements in the action. All five limits apply to the set-off procedure Sections 12-176 and 12-177 otherwise make available.
Frequently Asked Questions
What is the first exception to set-off under Section 12-178?
When the creditor in one judgment is not in the same capacity and trust as the debtor in the other.
What if the sum due on the first judgment was already assigned to someone else?
Set-off isn't allowed if that sum was lawfully and in good faith assigned to another person before the creditor in the second judgment became entitled to it.
What happens when one judgment has several creditors or debtors but the other judgment only involves some of them?
Set-off isn't allowed as to the portion where the parties on each side don't fully match.
Does set-off reach money owed to the winning party's attorney?
No, it's barred as to the part of the first judgment due to that party's attorney for fees and disbursements.
Do these exceptions apply to both Section 12-176 and Section 12-177?
Yes, they limit the set-off procedure those two sections establish.
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:exceptions to judgment set off illinoisattorney fee lien set off illinoiswhen set off is not allowed illinois