What Is A Wage Garnishment?

If you owe someone money, that person or company, called a “creditor,” can file a lawsuit against you. If the creditor wins in court, the creditor receives a “judgment” against you, a court order stating how much you owe the creditor. The creditor may try to collect by taking part of your wages. That process is called a “wage garnishment.” When your wages are garnished, the creditor sends a “summons” to your employer. Your employer will then reduce the amount of pay you receive and give the remainder of your wages to the creditor. In Illinois, there are several ways you can respond to a wage garnishment, but first, you should discuss your legal rights and options with an experienced Chicago bankruptcy lawyer.

Your employer cannot deduct all of your wages. A certain amount of your wages is exempt, meaning it is protected by law. You are allowed to keep take-home pay of at least:

– $371.25 weekly
– $742.50 bi-weekly (every other week)
– $804.37 semi-monthly (twice a month)
– $1608.75 monthly

If your paycheck is already being garnished by one creditor, it cannot be garnished by a second creditor until the existing garnishment is paid off. Also, as a general rule, your wages cannot be garnished if they are subject to an existing court order for child support.

Bankruptcy is a frequent response to wage garnishment. Bankruptcy immediately prevents creditors from taking any further action whatsoever against you. It eliminates creditors from your relationship with your employer, and it lets you stay in charge of determining how your debts are paid. However, bankruptcy may not always be the best solution for everyone whose wages are garnished, and other options are usually available. If you’re in debt, your wages are being garnished, and you are struggling to stay afloat financially, arrange to discuss your situation immediately with an experienced Chicago bankruptcy lawyer.