wage garnishment illinois

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Illinois Wage Garnishment Laws

A wage garnishment, also known as a wage attachment or wage deduction, is Court order that instructs your employer to withhold a specific amount of money from your paycheck and send it directly to a creditor. In most cases, a creditor cannot garnish your wages without obtaining a court-issued money judgment first. For example, if you have outstanding credit card payments or a medical bill, those creditors cannot garnish your wages unless they sue you first and get a Court Judgment. However, whether or not a creditor needs to sue you before garnishing wages depends on the type of debt.

Which Debts Can Be Automatically Garnished Without a Lawsuit?

Wage Garnishment for Unpaid Child Support

If you owe child support, federal law allows the government or the creditor to garnish your wages without obtaining a court judgment. Court orders for child support automatically include an income withholding order. The order will be forwarded to your employer, and the designated amount will be subtracted from every paycheck. 750 ILCS 28/20(a) Moreover, if you fall behind in child support payments, the other parent can seek an extra wage garnishment order from the court.

The wage garnishment limits for unpaid child support are as follows:

• Up to 50% of disposable earnings if you are currently supporting a spouse or a child not covered by the current order.
• Up to 60% of earnings if you are not supporting a spouse or child in a separate case.
• An additional 5% may be taken if you are more than 12 weeks in arrears (15 U.S.C. § 1673).

Wage Garnishment for Federal Student Loans in Default

For federal student loans in default, the U.S. Department of Education or its collecting entity can garnish up to 15% of your pay, a process known as “administrative garnishment.” However, you are allowed to retain an amount equivalent to 30 times the current federal minimum wage per week, as federal law protects this income level from garnishment. It’s crucial to emphasize that these regulations only apply to Federal Loans. Private student loan lenders , on the other hand, must follow traditional procedures, which involve filing a lawsuit to garnish wages.

Unpaid Taxes Garnishment Limits

If you owe back taxes, the federal government can garnish your wages (referred to as a “levy”) without a court judgment. The weekly exempt amount is determined based on the total of your standard deduction and the aggregate amount of deductions for personal exemptions allowed in the taxable year. This total is then divided by 52. If you haven’t specified your standard deduction and dependent information, the IRS bases the exempt amount on the standard deduction for a married person filing separately with only one personal exemption.

It’s important to note that state and local governments may also have the authority to garnish wages for unpaid state and local taxes. To obtain more information, contact your state labor department.

Which Forms of Income Are Exempt from Garnishment?

Welfare and various public or government benefits enjoy protection from creditors. This safeguard includes:

• Social Security Disability
• ERISA Protected Retirement Accounts ( not money withdrawn from these accounts)
• Dependent/Survivor Benefits
• SSI (Supplemental Security Income)
• TANF (Temporary Assistance for Needy Families)
• General Assistance
• SNAP (Food Stamps)
• Unemployment Insurance Benefits
• Most Veterans’ Benefits
• Most Child Support and Maintenance Income

This protection means that creditors are unable to seize any or all of these benefits to recover the amount owed by the debtor. If your income doesn’t fall within these protected categories, you might be at risk of wage garnishment. In such cases, the crucial question arises: How much of your income can be garnished?

Wage Garnishment Limits in Illinois

Under Illinois law, a judgment creditor can garnish your wages up to the lesser of two amounts:

• Up to 15% of your gross wages for that week.
• As of 2024, Illinois Minimum wage is $14 per hour and Federal Minimum Wage is $12.90.

Understanding “Disposable Earnings”

“Disposable earnings” refer to how much of an individual’s earnings are left after deducting any amounts required by law to be withheld ( 735 Ill. Comp. Stat. § 5/12-803 ).

Wage Garnishment Example

To determine the maximum amount an employer can take from a debtor’s paycheck, follow these steps:

• Multiply the debtor’s gross weekly wages by 0.15, record this result.
• Subtract $630 from the debtor’s net (take-home) weekly wages, and note this number.

The smaller of these two numbers is the maximum amount the creditor can garnish from the debtor’s paycheck per week. If the lower number is zero, the creditor cannot garnish any of the debtor’s wages. Additionally, if your pay frequency differs from weekly, you can convert your earnings to a weekly basis according to your pay period to figure out your weekly pay.

Furthermore, if you hold multiple jobs, the maximum garnishment limit still applies, but it’s determined by your combined income from all jobs. This means that a creditor can garnish your secondary paycheck too, up to a maximum of 15% of your total gross weekly earnings.

How Long Does Wage Garnishment Last?

Wage garnishment doesn’t go away until you’ve completely paid off what you owe or until some legal steps are taken to put a stop to it. If you’ve got a hefty debt, a garnishment could be part of your paycheck for quite a few years. The reason? In Illinois, legal judgments, for amounts over $25,000, earn interest at a rate of 9% per year, and for amounts under $25,000, it’s 5%. So, the longer it takes to settle the debt, the more it can add up.

In a nutshell, wage garnishment is a tool creditors use to make sure they get their money. But here in Illinois, there are protections in place for folks who owe money. Learning about these protections can help you handle wage garnishment challenges and figure out how to get some relief when you need it.

How to Protect Your Wages from Garnishment

Upon receiving notice of a wage garnishment order, you may have the opportunity to shield or “exempt” a portion or all of your wages by filing an exemption claim or raising an objection. The specific procedures for objecting to a wage garnishment hinge on the nature of the debt the creditor is pursuing.

Available Exemptions under Illinois Law

Illinois law offers various exemptions to help individuals undergoing wage garnishment to meet essential living expenses. These exemptions closely mirror the bankruptcy exemptions .

These include:

• Head of Household Exemption: Designed for primary breadwinners or those supporting dependents, this exemption protects a larger portion of their wages.
• Low-Income Exemption: Illinois safeguards low-income earners from extensive wage garnishment. Wages cannot be garnished to the extent that earnings fall below a threshold set at 45 times the federal minimum wage.
• Other Exemptions: As noted above, certain incomes such as Social Security, Supplemental Security Income (SSI), unemployment compensation, and specific retirement benefits, are exempt from wage garnishment in Illinois.

Applying for Exemptions in Illinois

In the face of wage garnishment, it is advisable to promptly seek legal counsel to understand available exemptions. Typically, one must file a claim for exemption with the court, providing evidence of eligibility. The court will review the claim, and if approved, adjust the garnishment accordingly. If this fails you are likely facing a permanent wage deduction or even an additional citation to discover assets .

Swift Debt Relief Through Bankruptcy

As a Chicago Bankruptcy Attorney , I am here to guide you towards the quickest and most painless way to solve your financial struggles—filing for bankruptcy. Once you have filed bankruptcy, all wage garnishments are immediately halted. A creditor cannot garnish your wages after a bankruptcy has been filed without violating the automatic stay . This approach not only offers a rapid resolution to your debts but may also provide an opportunity to recover some of the wages that were recently garnished as a preferential payment. Timing your filing is important , and now might be an opportune moment for you to consider bankruptcy. By taking this step, you can swiftly address your financial difficulties, gaining relief and paving the way for a fresh start. I am here to support you through this process and help you navigate towards a more stable financial future.

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A wage garnishment is when a part of a person’s wages are taken to pay for a debt they owe. This is also called a turnover order. The person who owes the money is called the debtor. The person they owe the money to is called the creditor. You may be called the respondent.

This article explains how to respond when you receive notice that your employee’s wages are being garnished or you have received court papers called a third party citation.

If you are a debtor and have received a Citation to Discover Assets, you can protect money and property from collection by using a Motion to Claim Exemption and a Notice of Motion.

Types of [no-lexicon] wage [/no-lexicon] [no-lexicon] garnishments [/no-lexicon] , turnover orders, or [no-lexicon] wage deductions [/no-lexicon]

The simplest type of garnishment or turnover order is for a debt owed to a regular creditor. An example of a regular creditor, is a credit card company, a hospital, a doctor, a finance company for a car, etc. 

There are also garnishments for child support, or a debt owed to the government. For example, student loans, or government benefits overpayments. These garnishments are handled differently.

How wage garnishments or turnovers under third-party citations work

A regular garnishment or turnover order can only happen after the creditor gets a judgment against the debtor in a court case. That means a judge has decided that the debtor owes money. Before the judgment is made official by a court, it is just a claim that the debtor owes something. 

After the judgment is made, it is a fact that the debtor owes money. Once the judgment has been entered, a collection case stops being about how much the debtor owes and becomes about how the debtor will pay. 

If a debtor does not pay a judgment against them, and they have a job, the creditor can try a wage garnishment or a third party citation. A wage garnishment or a third party citation requires you, the employer, to pay the creditor directly out of the employee’s wages if they earn enough money.

A wage garnishment starts with a wage deduction summons or a third party citation. The creditor sends this document to you, along with interrogatories. These are questions about the debtor’s employment and income. The interrogatories are on the back of the summons or third-party citation, or a separate document.

How to respond to an employee’s wage garnishment or third-party citation

Fill out and return the interrogatories by the deadline listed on the summons or third-party citation. If you don’t, you can become liable for the judgment entered against the debtor. 

The interrogatories ask basic questions about the debtor and their income. The first is whether the debtor works for you. If they do not, then check the “No” box, and send the form back.

If the debtor does work for you, answer the rest of the interrogatories about: 

• Pay periods,
• Hourly wage, 
• Gross pay, and 
• Required deductions from total pay.

The interrogatories explain how to calculate the amount you need to withhold for the garnishment or turnover order. 

Then, sign the form, and send a copy to the circuit clerk that issued the summons or third-party citation. Give or mail a copy of the completed interrogatories to the employee/debtor, and the creditor. 

To garnish the wages or withhold the payments, deduct the amount from each paycheck, and hold it. You will get an order from a judge, based on the answers to the interrogatories, that says what to do with that money.

Calculating a wage garnishment or turnover order

The interrogatories also ask you to estimate how much to deduct for the garnishment or turnover order.

To make that calculation, first find out if the debtor or employee’s net pay is over the debtor/employee’s exemption, or amount protected.  

If the net pay is less than the exemption, then there’s no deduction. Employees have to earn at least this exemption before their wages can be taken or withheld. 

Net pay, also known as disposable earnings, has a precise meaning in wage garnishments or third-party citations. To calculate the net pay, you must subtract certain deductions from the gross pay. The deductions you subtract from the gross pay is: 

• FICA (Social Security),
• Federal tax, and 

When calculating the net pay for garnishment or third party citations, do not deduct things like health or dental insurance, uniform fees, union dues, or United Way from gross pay.

If the debtor or employee’s net pay is over this exemption, then multiply the gross income by 0.15 or by 15%. Compare that amount to the amount of net pay that’s not exempt, and deduct the lesser amount for the garnishment. 

Those calculations go on the interrogatories, which you must return to the circuit clerk. 

Continue to make deductions from each paycheck until you hear back from a judge. An order should arrive, telling you to send the deductions to the creditor periodically. Or, if the deduction is zero, the order may say to keep the garnishment or turnover in place and begin deductions whenever the employee’s pay increases. You do this math every time your employee gets paid. Do not withhold any wages from your employee if their net pay is under $585 per week.

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Your Wages Are Being Garnished In Illinois: What Can You Do?  

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With consumer debt being at an all-time high , creditors are aggressively attempting to collect debt. Creditors can collect debt through various means but one of the most effective methods is garnishing your wages. Having your wages garnished by a creditor makes an already bad financial situation worse. It can prevent you from having enough money to pay your bills and dig you into a deeper whole. At DebtPros, our bankruptcy lawyers will review your situation and provide you with all your options to help you get back on your feat.

Fortunately, there are ways to stop garnishments. Filing for bankruptcy can provide you with immediate relief. In this blog, we will discuss wage garnishment laws in Illinois and how filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy can help.

Illinois’ wage garnishment laws

Illinois has its own set of laws governing wage garnishments called the Illinois Wage Assignment Act . These laws work in tandem with the federal Consumer Credit Protection Act . A wage garnishment or assignment is the legal process allowing a creditor to withhold money from your paycheck to pay back the creditor. The laws above set limitations on how much creditors can take.

Creditors cannot simply garnish your wages because you owe them money. To garnish wages, creditors must first obtain a judgement, with limited exceptions on federal student loan debt, child support debt, or tax debt. Obtaining a judgement requires the creditor to file a lawsuit against you. It is important to always appear in court if you are served a summons. If the judge determines that the lawsuit is valid and there are no defenses to the complaint, a judgement will be entered stating the amount of debt owed.

Next, for the creditor to have the right to withhold your wages, they must obtain a wage garnishment or assignment order. To do so, creditors must file a citation to discover assets to determine what assets you have and where you work. Determining that you have a w2 job prompts the creditor to seek a wage garnishment order. The creditor can then send this order to your employer to withhold a certain amount of money from your paycheck.  

As stated above, withholding wages has its limitiations. In Illinois, only 15 percent of your gross income can be withheld or the amount of disposable earnings that remains after deducting the Illinois’ minimum wage. Additionally, there are also exemptions available to you. Exemptions are laws that shield your income or assets from creditors. Below are some common exemptions afforded to consumers:

• Head of household exemption – this exemption is for the person who is breadwinner in their household or supports dependents. If you qualify, you can protect a larger portion of your wages from creditors.
• Low income exemption – this exemption is to protect people with low incomes to allow them to have enough money to cover their necessary expenses. The exemption does not allow the person to have less than 45 times the state minimum wage as weekly pay. For example, if the minimum wage is $15.00 an hour, they cannot garnish your wages if your net income is less than $675.00.

Lastly, certain types of income are protected from creditors. Protecting income shields it from creditor garnishment orders. Some examples of income that are garnishment proof include:

• Social security disability
• Social security income
• SNAP (food stamps)
• Unemployment insurance benefits
• Most VA benefits

If your wages are being garnished or are about to be, it is important to understand your rights and options. Rather than search online for solutions, it is always best to speak with an expert. That is why you should call us as soon as possible to understand your rights. When you call DebtPros, you will speak with an experienced bankruptcy lawyer in Chicago who will thoroughly review your situation and advise you on your options.

Wage garnishments and bankruptcy

Contesting a wage garnishment order in state court is typically an uphill battle. However, there are other ways to stop wage assignment orders. The most immediate and effective way to stop wage garnishments is filing for either Chapter 7 or Chapter 13 bankruptcy. Filing for bankruptcy is a powerful financial tool that stops creditors from collecting money from you while eliminating your debt.  

The bankruptcy code under title 11 of the United States Code is the uniform federal law governing bankruptcy cases. The underlying purpose of the bankruptcy code is to provide financial relief to consumers struggling to make ends meet. Filing a bankruptcy petition triggers a stay called the “ automatic stay .” This stay immediately stops creditors from continuing or starting collection actions against you. For instance, creditors are prohibited from:

• Garnishing your wages
• Filing or continuing a lawsuit against you
• Harassing you for money
• Sending letters or emails demanding payment, and
• Seizing or repossessing your property

Stopping these collection activities serves several purposes. First, it provides you with breathing room from your creditors, allowing you to get your finances in order. Second, it forces the creditors to seek payment on debt through the bankruptcy process. The automatic stay is imposed in both Chapter 7 and Chapter 13 bankruptcy cases.

Chapter 7 bankruptcy is a type of bankruptcy where unexempt assets are liquidated or sold to pay your creditors. Rarely does a Chapter 7 bankruptcy end up in you losing your property due to exemptions. Exemptions are used to protect your property from creditors. To learn more about Chapter 7, please visit our Chapter 7 bankruptcy page.

With respect to garnishments, Chapter 7 will stop any future garnishments after you file. Money taken from your pay within the 90 days prior to filing may also be recoverable. Chapter 7 lasts four to six months. If you have no unexempt assets, Chapter 7 is likely your best option.

Chapter 13 bankruptcy, also known as reorganization bankruptcy, requires you to repay your creditors over a three to five-year period. The trustee does not sell any of your property in a Chapter 13. When the case is filed, a proposed plan is filed detailing how much you will be paying your creditors back and what your monthly payments will be. Chapter 13 is for individuals with disposable income or assets that they do not want to lose in a Chapter 7.

With respect to garnishments, the automatic stay will stop them after you file. However, the amount owed under the garnishment order would need to be repaid in your bankruptcy case. For more information on Chapter 13 bankruptcy, please visit our Chapter 13 page . At DebtPros , our bankruptcy lawyers in Chicago are here to help.

Call now to speak with a bankruptcy lawyer!

Understanding the intricacies of Illinois’ wage garnishment laws is crucial for individuals facing financial difficulties. Any reduction in income, no matter how small, can severely impact your ability to pay your bills or other necessary expenses. Filing for bankruptcy can help stop garnishments and eliminate your debt. To determine your best course of action, call DebtPros now at (312) 883-5422 for a free consultation! When you call our Chicago DebtPros office, you will speak with an experienced bankruptcy lawyer who will review your case and advise you on your best options.

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Wage Garnishment in Illinois

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A wage garnishment order allows creditors to take money directly from your paycheck. Most of the time, this is only possible after a court has entered a judgment. Here's how Illinois regulates wage garnishments.

Written by Upsolve Team .  Updated November 7, 2022

If someone sues you and gets a judgment against you, their next step could be to garnish your wages. Wage garnishment — having some of your paycheck withheld to pay a debt — can make an already difficult financial situation even harder. In Illinois, creditors and employers must comply with strict rules and limitations about how wages can be garnished and the amount of money that can be withheld. This article covers how wage deduction works in the Prairie State and what you can do if you’re facing wage garnishment.

What Is Wage Garnishment?

If you owe money to a person or business (otherwise known as a creditor), wage garnishment is one method the creditor can use to collect that money. When your wages are garnished, your employer keeps a certain amount of your check each pay period and sends it to the creditor to pay toward your debt. The garnishment continues until the debt is paid. In most cases, the creditor must get a court order to garnish your wages. There are limits on how much money can be withheld from each paycheck, though these limits vary from state to state.

Who Can Garnish My Wages in Illinois?

In Illinois, any creditor can usually garnish your wages if the creditor has a Wage Deduction Order against you. This includes the original creditor or any of that creditor’s representatives, as well as debt collection agencies or debt buyers.

To get a signed Wage Deduction Order, most creditors must first file a lawsuit against you for the money you owe. If the creditor proves to the judge that you owe the debt, the court will enter a judgment against you in the amount of the debt. If you ignore the lawsuit or don’t go to court, the court can still enter a default judgment against you for the money owed. Once the creditor has a money judgment against you, the creditor can use wage garnishment or other measures to try to collect the judgment debt.

The garnishment rules are different for certain types of debts. Some examples include income taxes owed to the IRS, defaulted student loans, and debts owed to the state of Illinois. A creditor doesn’t need to sue you or get a judgment against you to garnish wages for these debts, and different rules control how much can be garnished from each check.

Child support and alimony are also subject to different rules. In Illinois, all child support orders include an automatic wage deduction order. Even if child support is not automatically deducted from your paycheck, the other parent can get a Wage Deduction Order against you if you miss payments. Illinois uses the federal law guidelines for child support garnishments. Under Illinois law, child support can be withheld from any type of income, even income that is off-limits to other creditors, such as workers’ compensation and unemployment benefits.

Wage assignments are another exception. A wage assignment is usually something you agree to as part of a contract. For example, if you get a payday loan, the loan agreement could contain a section that says you agree to a wage assignment if you miss two back-to-back payments. Illinois law treats wage assignments as voluntary agreements, not as wage garnishments, so the standard garnishment rules don’t apply.

Although Illinois wage garnishment law has special procedures and rules in place for these types of debts, this article focuses on typical consumer debts, such as medical bills or credit card debts, which require a judgment and wage deduction order.

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Illinois Wage Garnishment Process 

In Illinois, a creditor with a judgment against you (sometimes called a judgment creditor) usually initiates the wage garnishment process by sending a Citation to Discover Assets to your employer and mailing a copy to you. In some counties, instead of a Citation to Discover Assets, the creditor sends a Wage Deduction Summons to your employer and a Wage Deduction Notice to you. The documents and process are substantially the same regardless of the form title.

Your employer must provide the information requested in the citation before the hearing date shown on the citation’s front page. Illinois citation forms and the information requested vary from county to county, but, at a minimum, your employer must tell the creditor whether you are employed, how much you earn, and how often you get paid.

If your employer provides the requested information before the hearing date, they don’t have to attend the hearing. On the hearing date, the judge will issue a Wage Deduction Order. You and your employer will both receive a copy of the order. After your employer receives the order, your employer will begin garnishing your wages. 

You don’t have to attend the hearing, but you may attend. The hearing is your only opportunity to object to the garnishment. You can object to the garnishment if your wages are protected by exemptions that your employer didn’t include with its answer to the creditor. Employment income is usually not exempt under Illinois law, but other kinds of income are exempt from wage deductions. Some examples of exempt income include Social Security and other income from the federal government, workers’ compensation benefits, unemployment benefits, and government assistance, to name a few.

You can also object to the garnishment if the amount of the judgment is incorrect. For example, if you’ve already paid part of the judgment and your payment hasn’t been properly deducted from the total. You can’t object to the validity of the judgment at this hearing, only the remaining balance.

How Much of My Paycheck Can Be Taken by Wage Garnishment?

Illinois law limits the amount that can be taken from your paycheck to fulfill a wage deduction order. From each paycheck, your employer can withhold whichever of these two is smaller:

15% of your gross wages (before subtracting taxes and other deductions); or

Your disposable earnings (the take-home amount after taxes and deductions are subtracted) minus Illinois’ hourly minimum wage multiplied by 45. Illinois’ minimum wage in 2021 is $11, and $11 x 45 = $495, so this number would be your net pay minus $495. 

If your take-home pay is less than $495 per paycheck, your employer can’t withhold anything from your pay.

The total amount deducted from your pay can’t be more than the amount of the judgment, plus any additional costs, fees, and interest. The creditor’s court costs are usually included in the amount of the judgment, and some judgments also include the creditor’s attorney fees. Illinois judgments automatically accrue post-judgment interest at an annual rate of either 9% (for judgments of more than $25,000) or 5% (for judgments of $25,000 or less).

State law requires the creditor to send your employer an updated Certificate of Judgment balance every January 1, April 1, July 1, and October 1 until the judgment is paid in full.

How To Stop a Garnishment in Illinois

In rare cases, you may be able to contact the creditor and work out a payment arrangement that doesn’t involve wage deductions. Because you don’t have much negotiating power at this point, your chances of success are small. Depending on the size of your paycheck, the creditor may be facing a very long period of small payments trickling in, so they may be open to another payment arrangement. But the creditor was likely aware of this before proceeding with the garnishment order, based on your employer’s answers to the Citation to Discover Assets.

For the most part, there are only two ways to stop wage garnishments in Illinois. First, you can pay off the judgment. You may be able to pay the judgment in a lump sum, or you may have to wait for the garnishment to run its course. The second way to stop a garnishment is by filing bankruptcy . When you file bankruptcy, a section of the Bankruptcy Code called the automatic stay stops all debt collection efforts against you, including the garnishment. Through your bankruptcy, you may be likely to eliminate, or discharge , the judgment debt completely. Depending on your circumstances, you may be able to complete the forms and file Chapter 7 bankruptcy by yourself for free without hiring a lawyer. 

Are There Any Resources for People Facing Wage Garnishment in Illinois?

If you’re dealing with a wage garnishment, it may be helpful to consult with a licensed Illinois attorney to discuss your options. Even if you can’t afford to hire an attorney, there are legal aid organizations that may be able to help. These are some of the legal aid resources available in Illinois:

Chicago Volunteer Legal Services

DuPage Legal Aid

Greater Chicago Legal Clinic

Illinois Legal Aid Online

Land of Lincoln Legal Aid

Prairie State Legal Services

Legal Aid Chicago

Related Reading

• How To File Bankruptcy for Free in Illinois
• Your Guide to Illinois’ Debt Collection Laws
• Repossession Laws in Illinois
• How to Consolidate Your Debts in Illinois
• How to Become Debt Free With a Debt Management Plan in Illinois
• Eviction Laws and Tenant Rights in Illinois
• How to Settle Your Debts in Illinois
• How to Get Free Credit Counseling in Illinois

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So You’re Dealing with a Wage Garnishment in Illinois? Here’s What you Need to Know:

Brief Overview of Wage Garnishment

What is wage garnishment.

Wage garnishment, also known as wage attachment, is a legal process wherein a portion of an employee's income is withheld by an employer for the payment of a debt. It's a tool used by creditors to secure payment from borrowers who have defaulted or failed to pay back their debts.

Wage Garnishment in Illinois

In Illinois , wage garnishment is permitted, but there are several limitations in place to protect employees. Creditors must first obtain a court judgment to garnish wages, except for cases involving debts like federal student loans, child support, or taxes. The state caps the amount that can be garnished, ensuring a portion of the employee's income remains untouched.

How it Works

When a creditor gets a court order for wage garnishment , the employer is mandated to withhold a certain amount from the debtor's paycheck. This amount is usually 15% of the gross paycheck, which can be more that 25% of your take home pay. This amount is then forwarded directly to the creditor.

Legal Process Involved

Before initiating wage garnishment, most creditors are required to sue the debtor and obtain a judgment. Once they have the judgment, they can request the court to issue a wage garnishment order, which is then served to the employer.

Illinois Wage Garnishment Exemptions

Types of exemptions available.

Illinois law provides various exemptions to ensure that individuals undergoing wage garnishment can still meet their essential living expenses.

Head of Household Exemption

If an individual is the primary breadwinner in their household or supports dependents, they may be eligible for exemptions to protect a larger portion of their wages.

Low Income Exemption

Illinois has provisions to protect those earning a low income from wage garnishment . For instance, wages may not be garnished to an extent where an individual's earnings drop below a threshold set at 45 times the federal minimum wage.

Some incomes, like Social Security, Supplemental Security Income (SSI), unemployment compensation, and certain retirement benefits, are exempt from wage garnishment in Illinois.

How to Apply for Exemptions in Illinois

If facing wage garnishment, one should promptly consult an attorney to understand the available exemptions. Typically, you'll need to file a claim for exemption with the court, providing evidence for your eligibility. The court will then evaluate the claim and, if approved, adjust the garnishment accordingly.

Consequences of Wage Garnishment in Illinois

Having wages garnished can lead to financial strain and challenges in meeting daily expenses. Besides the financial implications, it can affect one's credit score and even strain the relationship with employers, as they're involved in the garnishment process.

Can You Have Multiple Wage Garnishments in Illinois?

While it's possible to have more than one wage garnishment, federal law protects employees. An employer cannot terminate an employee because of multiple wage garnishments for a single debt. However, protections might not apply if there are garnishments for multiple debts.

How Long Does Wage Garnishment Last?

Wage garnishment will continue until the debt is fully paid or other legal actions are taken to stop the garnishment. In some cases, if the debt amount is significant, garnishment could last for years.

To sum it up, wage garnishment is a tool for creditors to ensure they get paid, but Illinois has several protections in place for debtors. Understanding these can help individuals navigate the challenges of wage garnishment and seek relief when necessary.

What Can I Do?

Being threatened with wage garnishment can feel overwhelming and stressful. But remember, in times of financial uncertainty, knowledge and timely action are your strongest allies.

The very first step in navigating any challenging debt situation is to consult experts who can guide you. If wage garnishment is looming over your horizon, it might be time to consider speaking with a bankruptcy attorney. Not sure where to start? We're here to help.

At DebtStoppers, we pride ourselves on being the nation's largest consumer bankruptcy firm. By reaching out to a firm like ours, you can schedule a free consultation with some of our most experienced attorneys. We're committed to giving you all the time you need, ensuring you have clarity on your situation and can chart out the best course of action.

Worried about the stigma attached to bankruptcy? It's essential to remember that less than half of the individuals who consult with us end up filing for bankruptcy. Our primary goal isn't to push you into a decision but to guide you towards the best path for your unique situation.

The root of stress in these situations often stems from uncertainty and not having a clear plan. Once you have a strategy tailored for your circumstances, you'll find immediate relief and a renewed sense of direction. So don't wait, take control of your financial future today. Reach out to us at DebtStoppers and let's build your roadmap to financial peace of mind

By Patrick Semrad | Published October 17 2023 | Posted in Illinois Georgia Texas

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WAGE AND HOUR DIVISION

UNITED STATES DEPARTMENT OF LABOR

Fact Sheet #30: The Federal Wage Garnishment Law, Consumer Credit Protection Act's Title III (CCPA)

Revised October 2020

This fact sheet provides general information concerning the CCPA’s limits on the amount that employers may withhold from a person’s earnings in response to a garnishment order, and the CCPA’s protection from termination because of garnishment for any single debt.

Wage Garnishments

A wage garnishment is any legal or equitable procedure through which some portion of a person’s earnings is required to be withheld for the payment of a debt. Most garnishments are made by court order. Other types of legal or equitable procedures for garnishment include IRS or state tax collection agency levies for unpaid taxes and federal agency administrative garnishments for non-tax debts owed to the federal government.

Wage garnishments do not include voluntary wage assignments – that is, situations in which employees voluntarily agree that their employers may turn over some specified amount of their earnings to a creditor or creditors.

Title III of the CCPA’s Limitations on Wage Garnishments

Title III of the CCPA (Title III) limits the amount of an individual’s earnings that may be garnished and protects an employee from being fired if pay is garnished for only one debt. The U.S. Department of Labor’s Wage and Hour Division administers Title III, which applies in all 50 states, the District of Columbia, and all U.S. territories and possessions. Title III protects everyone who receives personal earnings.

The Wage and Hour Division has authority with regard to questions relating to the amount garnished or termination. Other questions relating to garnishment should be directed to the court or agency initiating the garnishment action. For example, questions regarding the priority given to certain garnishments over others are not matters covered by Title III and may be referred to the court or agency initiating the action. The CCPA contains no provisions controlling the priorities of garnishments, which are determined by state or other federal laws. However, in no event may the amount of any individual’s disposable earnings that may be garnished exceed the percentages specified in the CCPA.

Definition of Earnings

The CCPA defines earnings as compensation paid or payable for personal services , including wages, salaries, commissions, bonuses, and periodic payments from a pension or retirement program. Payments from an employment-based disability plan are also earnings.

Earnings may include payments received in lump sums , including:

• commissions;
• discretionary and nondiscretionary bonuses;
• productivity or performance bonuses;
• profit sharing;
• referral and sign-on bonuses;
• moving or relocation incentive payments;
• attendance, safety, and cash service awards;
• retroactive merit increases;
• payment for working during a holiday;
• workers’ compensation payments for wage replacement, whether paid periodically or in a lump sum;
• termination pay ( e.g. , payment of last wages, as well as any outstanding accrued benefits);
• severance pay; and,
• back and front pay payments from insurance settlements.

In determining whether certain lump-sum payments are earnings under the CCPA, the central inquiry is whether the employer paid the amount in question for the employee’s services .If the lump-sum payment is made in exchange for personal services rendered, then like payments received periodically, it will be subject to the CCPA’s garnishment limitations. Conversely, lump-sum payments that are unrelated to personal services rendered are not earnings under the CCPA.

For employees who receive tips, the cash wages paid directly by the employer and the amount of any tip credit claimed by the employer under federal or state law are earnings for the purposes of the wage garnishment law. Tips received in excess of the tip credit amount or in excess of the wages paid directly by the employer (if no tip credit is claimed or allowed) are not earnings for purposes of the CCPA.

Limitations on the Amount of Earnings that may be Garnished (General)

The amount of pay subject to garnishment is based on an employee’s “disposable earnings,” which is the amount of earnings left after legally required deductions are made . Examples of such deductions include federal, state, and local taxes, and the employee’s share of Social Security, Medicare and State Unemployment Insurance tax. It also includes withholdings for employee retirement systems required by law.

Deductions not required by law – such as those for voluntary wage assignments, union dues, health and life insurance, contributions to charitable causes, purchases of savings bonds, retirement plan contributions (except those required by law) and payments to employers for payroll advances or purchases of merchandise – usually may not be subtracted from gross earnings when calculating disposable earnings under the CCPA.

Title III sets the maximum amount that may be garnished in any workweek or pay period, regardless of the number of garnishment orders received by the employer. For ordinary garnishments ( i.e. , those not for support, bankruptcy, or any state or federal tax), the weekly amount may not exceed the lesser of two figures: 25% of the employee’s disposable earnings, or the amount by which an employee’s disposable earnings are greater than 30 times the federal minimum wage (currently $7.25 an hour).

Therefore, if the pay period is weekly and disposable earnings are $217.50 ($7.25 × 30) or less, there can be no garnishment. If disposable earnings are more than $217.50 but less than $290 ($7.25 × 40), the amount above $217.50 can be garnished. If disposable earnings are $290 or more, a maximum of 25% can be garnished. When pay periods cover more than one week, multiples of the weekly restrictions must be used to calculate the maximum amounts that may be garnished. The table and examples at the end of this fact sheet illustrate these amounts.

As discussed below, these limitations do not apply to certain bankruptcy court orders, or to garnishments to recover debts due for state or federal taxes, and different limitations apply to garnishments pursuant to court orders for child support or alimony.

Limitations on the Amount of Earnings That May be Garnished for Child Support and Alimony

Title III also limits the amount of earnings that may be garnished pursuant to court orders for child support or alimony. The garnishment law allows up to 50% of a worker’s disposable earnings to be garnished for these purposes if the worker is supporting another spouse or child, or up to 60% if the worker is not. An additional 5% may be garnished for support payments more than l2 weeks in arrears.

Exceptions to Title III’s Limitation on Wage Garnishments

The wage garnishment law specifies that its limitations on the amount of earnings that may be garnished do not apply to certain bankruptcy court orders, or to debts due for federal or state taxes.

If a state wage garnishment law differs from Title III, the law resulting in the lower amount of earnings being garnished must be observed.

Non-Tax Debts Owed to Federal Agencies

The Debt Collection Improvement Act authorizes federal agencies or collection agencies under contract with them to garnish up to 15% of disposable earnings to repay defaulted debts owed to the U.S. government. As of December 20, 2018, the Higher Education Act authorizes the Department of Education’s guaranty agencies to garnish up to 15% of disposable earnings to repay defaulted federal student loans. Such withholding is also subject to the provisions of Title III of the CCPA, but not state garnishment laws. Unless the total of all garnishments exceeds Title III’s limits on garnishment, questions regarding such garnishments should be referred to the agency initiating the withholding action.

EXAMPLES OF AMOUNTS SUBJECT TO GARNISHMENT

The following examples illustrate the statutory tests for determining the amounts subject to garnishment, based on the current federal minimum wage of $7.25 per hour.

• An employee’s gross earnings in a particular week are $263. After deductions required by law, the disposable earnings are $233.00. In this week, $15.50 may be garnished, because only the amount over $217.50 may be garnished where the disposable earnings are less than $290.
• An employee receives a bonus in a particular workweek of $402. After deductions required by law, the disposable earnings are $368. In this week, 25% of the disposable earnings may be garnished. ($368 × 25% = $92).
• An employee paid every other week has disposable earnings of $500 for the first week and $80 for the second week of the pay period, for a total of $580. In a biweekly pay period, when disposable earnings are at or above $580 for the pay period, 25% may be garnished; $145.00 (25% × $580) may be garnished. It does not matter that the disposable earnings in the second week are less than $217.50.
• An employee on a $400 weekly draw against commissions has disposable earnings each week of $300. Commissions are paid monthly and result in $1,800 in disposable earnings for July after already-paid weekly draws are subtracted and deductions required by law are made. Each draw and the monthly commission payment are separately subject to the law’s limitation. Thus, 25% of each week’s disposable earnings from the draw ($75 in this example) may be garnished. Additionally, 25% of the disposable earnings from the commission payment may be garnished, or $450 ($1,800 × 25% = $450).
• An employee who has disposable earnings of $370 a week has $140 withheld per week pursuant to court orders for child support. Title III allows up to 50% or 60% of disposable earnings to be garnished for this purpose. A garnishment order for the collection of a defaulted consumer debt is also served on the employer. If there were no garnishment orders (with priority) for child support, Title III’s general limitations would apply to the garnishment for the defaulted consumer debt, and a maximum of $92.50 (25% × $370) would be garnished per week. However, the existing garnishment for child support means in this example that no additional garnishment for the defaulted consumer debt may be made because the amount already garnished is more than the amount (25%) that may be generally garnished. Additional amounts could be garnished to collect child support, delinquent federal or state taxes, or certain bankruptcy court ordered payments.

Title III Protections against Discharge when Wages are Garnished

The CCPA prohibits an employer from firing an employee whose earnings are subject to garnishment for any one debt, regardless of the number of levies made or proceedings brought to collect that one debt. The CCPA does not prohibit discharge because an employee’s earnings are separately garnished for two or more debts.

Where to Obtain Additional Information

For additional information, visit our Wage and Hour Division Website: http://www.dol.gov/agencies/whd and/or call our toll-free information and helpline, available 8 a.m. to 5 p.m. in your time zone, 1-866-4USWAGE (1-866-487-9243).

This publication is for general information and is not to be considered in the same light as official statements of position contained in the regulations.

The contents of this document do not have the force and effect of law and are not meant to bind the public in any way. This document is intended only to provide clarity to the public regarding existing requirements under the law or agency policies.

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Illinois Wage Garnishment Calculator (2024 update)

You may have received a garnishment notice from your employer and wonder whether a wage garnishment calculator can help you estimate how much you will be garnished in Illinois. 

Wage garnishment in Illinois  is different from many other states, so how much will you be garnished?

Below is the Illinois wage garnishment that estimates how much you may be garnished. You can also compare 3 different options, how to stop wage garnishment, and the cost of those options. 

The calculator is free and does not even require an email address unless you’d like a free review of the data. Please note that this Illinois garnishment calculator is an estimate based on the laws below and may be different from the actual garnishment amount.

How Wage Garnishment in Illinois is Calculated

There are some states that do not allow wage garnishment, so those would not be in the calculator. Here are the specific Illinois wage garnishment laws that are factored into the IL wage garnishment calculator above.

"The amount of wages that may be deducted is limited by federal and Illinois law. (1) Under Illinois law, the amount of wages that may be deducted is limited to the lesser of (i) 15% of gross weekly wages or (ii) the amount by which disposable earnings for a week exceed the total of 45 times the federal minimum hourly wage or, under a wage deduction summons served on or after January 1, 2006, the minimum hourly wage prescribed by Section 4 of the Minimum Wage Law, whichever is greater. (2) Under federal law, the amount of wages that may be deducted is limited to the lesser of (i) 25% of disposable earnings for a week or (ii) the amount by which disposable earnings for a week exceed 30 times the federal minimum hourly wage."

Would the Garnishment Calculator Results be the Same in Chicago as Naperville?

Let’s say that Chicago has a higher minimum wage than Naperville or even that of Illinois. For example, Illinois minimum wage is $12.00. Could the calculation be different?

Many states take into consideration the federal minimum wage, and some states such as Maine may take into consideration state minimum wage, but that doesn’t mean the Illinois wage garnishment calculator would be different.

How Do Employers Calculate Wage Garnishment in Illinois?

Employers in Illinois may use the employer wage garnishment calculator to help estimate the garnishments amount for employees. Please note that the calculator feels a bit complex and not as simple to use.

Understanding Illinois Higher Order Priority in the Calculation 

First, the creditor requests a writ of execution from the Illinois court. Check an example Illinois writ of execution . Next, the court attaches an earnings withholdings to the write, which authorizes your employer to hold back money from your earnings.

Let’s say you have multiple earning withholding orders in Illinois that could include child support or alimony. Here’s the specific priority for the garnishment calculation in Illinois:

• Wage and Earnings Assignment Order for Support
• Earnings Withholding for Support
• Earnings Withholding for Taxes
• Earnings Withholding for Elder or Dependent Adult Financial Abuse
• Earnings Withholding Order

Now that we understand how the wage garnishment calculator works, let’s talk about how to stop wage garnishment in Illinois.

Options to Stop Wage Garnishment in Illinois

There are a few options that you can pursue to potentially stop a wage garnishment. The wage garnishment calculator provides the option to compare your different options to stop a garnishment.

File an Objection or Exemption

First, you can try to object to the wage garnishment. When you receive your garnishment documents, you can find instructions on how to object to the garnishment including filing deadlines. If not, you can reach out to the clerk of the court or contact a lawyer to help.

You may also attempt to claim an exemption to the garnishment in some states as well.

In Illinois, you’d file this garnishment exemption form to request an exemption from your garnishment. Please note that this may be difficult to receive.

File For Bankruptcy

Filing for bankruptcy in Illinois may eliminate a wage garnishment a judgment related to unpaid debt, especially in those instances when individuals are already living paycheck to paycheck. There are two common consumer bankruptcies to consider.

Chapter 7 Bankruptcy

A Chapter 7 bankruptcy in Illinois is the most affordable and most common bankruptcy in the United States. It is also the fastest, but you could lose assets if the equity that you own in that assets is about the Illinois bankruptcy exemptions .

You also may have to qualify via the Illinois bankruptcy means test. Below are the Illinois median income guidelines for bankruptcy cases filed on or after May 15, 2022. Please note you would add an additional $9,900 for household sizes greater than 9.

Chapter 13 Bankruptcy

A Chapter 13 bankruptcy in Illinois is a payment plan based bankruptcy. It often lasts 3 or 5 years, and you can often protect your assets in bankruptcy even if they are above the exemption. You may consider a Chapter 13 bankruptcy if some of the payments from the wage garnishment would not be discharged in a Chapter 7 bankruptcy.

If you are considering a Chapter 13 bankruptcy in Illinois, you may also want to compare that option to debt settlement. While you don’t have creditor protection in debt settlement, this option can sometimes be cheaper and faster than a Chapter 13 bankruptcy.

How much does it cost to file bankruptcy in Illinois?

You may have taken the wage garnishment calculator and see that it would take out too much of your pay, but now you are wondering whether you could even afford bankruptcy. Thankfully, most attorneys take payment plans for the attorney fees. Some attorneys take most of the Chapter 13 bankruptcy payments in the plan.

While the cost to file bankruptcy in Illinois is less expensive for the Chapter 13 ($313 vs $338), the attorney fees may be triple what you would pay for a Chapter 7 bankruptcy.

Please note that the filing fees can be waived if your income is below certain poverty thresholds. Here’s the Illinois poverty thresholds below.

Negotiate a Settlement

You may attempt to negotiate a settlement if it’s an unpaid debt. That said, the creditor has the upper hand generally in this position, so you may not get a major discount from the owed debt. Realistically, you may not be able to negotiate a settlement or backpay for support such as spousal or child support.

What Should You Do?

One question to consider is whether you can afford the amount being taken from your paycheck and understand the duration of how much will be taken.

For example, let’s say you live in Chicago or Aurora and are dealing with rental inflation, gas, and food. Let’s say you aren’t able to afford the garnishment. In that case, someone may consider an option such as bankruptcy.

If you are able to afford the garnishment, others may allow it to run its course or try to negotiate. Regardless, you can take the wage garnishment calculator for Illinois to inform your decision.

• How to Obtain a Garnishment Order
• How to Stop Wage Garnishment?
• Bankruptcy and Wage Garnishment
• Garnishment Laws Blog

Illinois Garnishment Laws

In Illinois, like all other states in the United States, creditors can garnish wages to satisfy their debts. The Illinois state statute that governs the wage garnishment process is referred to as 735 ILCS 5/ Code of Civil Procedure of the Consolidated Statutes of Illinois.

Laws Governing Wage Garnishment in Illinois

The U.S. legal system works as a form of “federalism.” This means that every kind of debt there is – whether based on credit cards, medical services, unpaid federal or state taxes, child or spousal support, educational loans, or otherwise – finds roots in both federal and state law. For a creditor seeking to enforce a debt in Illinois, this means we must refer to any federal or state Illinois law that addresses Wage Garnishments and limitations thereon. And because of “federalism,” if federal law wants to have the final word on the subject, it can defer to state law or assert its supremacy as the law of the land.

Situations to Which Wage Garnishments Apply

Irrespective of the state in which it takes place, the wage garnishment process at core is a legal tool used by creditors to collect unpaid debts. The particular aspect of wage garnishment, as opposed to other forms of debt collection, is that a monetary debt must be owed, the creditor must usually first file a lawsuit and obtain a Money Judgment, and the Money Judgement must be converted into a Wage Garnishment Order.

By its nature, a Wage Garnish presupposes an employed debtor, because a Wage Garnishment Order seeks to attach a debtor’s wages and pay them over to the creditor. A Wage Garnishment order has no power as against an unemployed debtor or a debtor who works as an independent contractor, freelancer, or self-owned business (unless the owner employs himself, a status which he can then change to avoid the garnishment). In other words, a Wage Garnishment Order only reaches currently employed individuals paid through W-2s.

How the Wage Garnishment Process Works

Because it is so often used, the Wage Garnishment process is a simple one. Generally it commands the employer to take part of an employee’s regular wages and pay that part over to the creditor to satisfy the Judgment (and underlying debt) identified in the Garnishment Order. The Order must be taken seriously by the employer, because failure to comply can subject the creditor to fines or worse. On the other hand, the creditor cannot over-attach wages, either. The employer’s obligation is exacting: it must garnish exactly what the law and order allows, not a penny more and not a penny less.

Limitations on Wage Garnishment in Illinois

In the absence of legally-imposed limitations, a creditor could garnish or attach 100% of a debtor’s wages, leaving him and his family with nothing to live on. Since creditors can get very aggressive, if society did not provide debtors with protection from garnishment, a creditor could push so hard the debtor would not be able to keep a roof over his head and food on the plate for his family, turning him into a recipient of welfare benefits. As a result, public policy compassionately protects debtors by applying concepts of hardship. In Illinois, some of these protections come from federal law, and some originate from Illinois’ own state laws.

Federal Protections

Under federal law – specifically, the Consumer Credit Protection Act – the most that a typical creditor can garnish from an employee’s pay check is subject to what is called “the 25-30 Rule.” Under the “25 Rule,” the most the creditor can take is 25% of the employee’s “Disposable Earnings.” “Disposable earnings” are gross wages less deductions allowed for things like withholding, SSI, and union dues. Private components like insurance premium deductions generally cannot be deducted to calculate “Disposable Earnings.”

Under the alternative “30 Rule,” the creditor can only take amounts above 30 times the federal minimum wage. Amounts up to 30 times minimum wage, are therefore exempt.  Ever since July 2009, the federal minimum wage has been $7.25 per hour for employees with medical insurance premiums being automatically taken out of their paycheck, and $8.25 for employees without such premiums being automatically deducted. No matter which rule is applied, under the supreme mandate of federal law, the creditor is only entitled to garnish the lesser of the two of the two formulas.

Illinois State Law Protections

Situations Where Illinois Does Not Require the Creditor to Have a Money Judgment to Effect Wage Garnishment

Though normally a creditor must first obtain a Money Judgment to garnish wages, some credits can proceed administratively, thus saving hassle, time, delay and expense. Here is a non-exclusive list of debts that may not require a Money Judgment and that can instead be enforced with an administrative wage attachment order:

• Court-ordered and past due child support
• Alimony or spousal support that is past due
• Federal, state and local fines
• Income taxes arrearages at the federal or state level
• Property taxes due at the state level
• Defaulted student loans.

Special Treatment of Child Support and Alimony

It’s been over three decades now since all U.S. court orders for child support and alimony (or spousal support) have automatically allowed for wage garnishment of the paying spouses wages. For current support, as with consumer debts, federal law limits the amount garnished to the previously-discussed “25-30 Rule.” However, where support payments are past due, that is a different story. For past due support, up to 60% of wages can be garnished unless another dependent is being supported, in which case the maximum is 50%.  And if the debtor is in arrears more than twelve (12) weeks, an additional five percent (5%) can be tacked on. This means that, in the more severe cases, as much as sixty-five percent (65%) of that employee’s “disposable earnings” can be garnished for support.

Special Treatment of Student Loans and State Taxes

The U.S. Department of Education is empowered to collect student loans. If a student loan falls into default, the DoE may issue an administrative wage garnishment (remember, no Money Judgement is required). However, the most that the DoE can garnish is 15% of your “Disposable Earnings,” or more than 30 times the minimum wage. You could look at this as a “15-30 Rule.”

Other Debts Receiving Special Treatment

Many debts receive special treatment under federal law and are deemed exempt from any form of wage garnishment. These include:

• SSI Benefits
• Unemployment Insurance Benefits
• Veteran’s Benefits
• Certain Military Pensions
• Public Assistance Payments
• Disability Compensation
• Worker’s Comp
• Railroad and Black Lung benefits

Special Rules for Bankruptcy and Federal IRS Tax Debts

The Court in Chapter 7 bankruptcy proceedings, or the trustee in a Chapter 13 reorganizations, as a theoretical matter can reach as much as ninety percent (90%) of an employee’s “disposable earnings”…though hardship is always taken into account. Similarly, the IRS can garnish as much as seventy percent (70%) of an employee’s wages after applying a complicated formula where hardship is also taken into account.

Priority as Between Multiple Income Garnishments

When the debtor-employee faces multiple types of garnishment orders, the employer must first prioritize certain debts over others. Generally, the order of priority runs as follows: past due child support always comes first, followed next by past due federal income taxes, then defaulted student loans, bankruptcy payments, and state levies. All of these come before consumer debt, credit cards, pay day loans, even medical liens, and it is the type of debt, not the timing or order of garnishment that controls.

Illinois Job Protection for Wage Garnishment Process

Some employers, especially smaller ones, would rather fire the employee than deal with the hassle and complications of the wage garnishment process. Under both federal and Illinois law, this is prohibited and a violative employer can be subject to liability, fines or criminal penalty.

Like so many debt collection laws, Illinois wage Garnishment law can be simple in some situations and complicated in others, depending on the amount involved, type of debt, number or attachments, and other factors. If most situations, you are wise to give yourself peace of mind by consulting with a qualified debtor-creditor, legal, or tax professional.

Illinois Law

Illinois General Assembly, Illinois Compiled Statutes, Civil Procedure, 735 ILS section 5, http://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=073500050HArt.+XII+Pt.+8&ActID=2017&ChapterID=56&SeqStart=93100000&SeqEnd=95200000

Legal Aid – Stopping Garnishment: https://www.illinoislegalaid.org/legal-information/wage-garnishment-basics

Federal Law

Title II of the Consumer Credit Protection Act, 15 U.S.C. Section 1671 to 1777 (garnishment orders)

The Federal Wage Garnishment Law, Title III of the Consumer Credit Protection Act, 15 USC 1671 et seq., https://www.dol.gov/whd/regs/statutes/garn01.pdf

United States Department of Labor, Wage and Hour Division, Federal Wage Garnishments, https://www.dol.gov/whd/garnishment/

United States Department of Labor, Summary of Major Laws of the Department of Labor, https://www.dol.gov/general/aboutdol/majorlaws

Fair Labor Standards Act, as amended, Public Law 99-150, enacted on November 13, 1985, amending the Fair Labor Standards Act, https://www.gpo.gov/fdsys/pkg/STATUTE-99/pdf/STATUTE-99-Pg787.pdf

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Stop Wage Garnishment in Illinois

Sarah Edwards | June 15, 2023

Legal Expert Sarah Edwards, BS

Sarah Harris is a professional researcher and writer specializing in legal content. An Emerson College alumna, she holds a Bachelor of Science in Communication from the prestigious Boston institution.

Edited by Hannah Locklear

Editor at SoloSuit Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

Summary: An Illinois wage garnishment allows creditors to seize up to 15% of your weekly disposable earnings. Illinois law is friendlier to debtors than laws in other states that stipulate wage garnishment can be as high as 25% of the debtor's disposable earnings. That being said, you can stop wage garnishment before it even begins through debt settlement. SoloSettle makes settling your debt in Illinois easier. Otherwise, file a claim of exemption to stop wage garnishment in Illinois.

Financial problems are nothing to be ashamed of. Everyone has experienced the stress of sinking into debt or not having enough money to manage their bills. You'll likely feel anxious when it happens to you and wonder how to overcome a tricky situation.

Missing a few payments with a creditor can be an easy fix, but your problems will compound the longer you don’t pay your bills. Failing to communicate with your creditor or arrange a new payment plan can result in a debt lawsuit, with you named as the defendant.

If a creditor or collections agency decides to take legal action against you, it wants to win a judgment that it can use to garnish your wages. A judgment will stay in the public records for years, and wage garnishment can take a big bite out of your weekly income.

If you’re facing a debt lawsuit in Illinois, it’s critical to understand the ramifications that wage garnishment will have on your paycheck.

Avoid wage garnishment through debt settlement.

Settle with SoloSettle

Illinois isn’t as strict as other states when it comes to wage garnishment.

An Illinois wage garnishment won’t take as much from your income as it will in other states. Under 740 ILCS 170/4 , a wage garnishment must be the lesser of:

• 15% of your disposable earnings.
• The amount your disposable earnings exceed 45 times the Illinois minimum wage , which is currently $13 for most wage earners.

According to Illinois law, disposable earnings equal the net pay after any required deductions, like federal and state taxes. In addition, state law exempts all income from pensions and retirement funds, including Social Security retirement and disability payments, from wage garnishment.

Illinois law is friendlier to debtors than laws in other states that stipulate wage garnishment can be as high as 25% of the debtor's disposable earnings.

However, while you may pay less for wage garnishment than in other states, that doesn’t mean wage garnishment won’t impact your ability to pay for other things, like rent or groceries.

Let’s consider how an Illinois wage garnishment may impact a worker in a hypothetical example.

Example: George borrows $1,500 from La Bankola. He stops making payments on the loan during a rough patch and never attempts to resolve the issue with the bank. La Bankola decides to sue George, and it wins the lawsuit. The bank plans to use the judgment to garnish George’s wages. George currently takes home $1,000 weekly after taxes from his job as a carpenter. Under Illinois law, his employer must withhold $150 from each of George’s paychecks, or 15% of his disposable earnings. The $150 amount is the lesser of the two wage garnishment options since the alternative is $415, or $1,000 - (45 x $13). George’s employer will deduct $150 each week for ten weeks until he fully satisfies the debt.

In our example, George will pay $600 each month until he repays the entire loan. That will impact his ability to pay his other bills, which may worsen his financial situation.

Respond to your debt lawsuit to stop wage garnishment before it starts

If you’re finding it difficult to meet your bills, your first step is to contact your creditors. Explain if you’re going through something unexpected, like a medical issue that keeps you from working. Your creditors may give you a few months to get back on top of your finances or allow you to make smaller payments toward your obligation.

When you ignore creditors, they don’t go away. Instead, they’ll increase their efforts to collect their money. You’ll probably start receiving lots of phone calls and letters. If you don’t respond to these communication efforts, your creditor may sell your debt to a collection agency or sue you.

The next step of collections is typically a debt lawsuit. Creditors or collections agencies can sue you if they have the right to collect your obligation. You’ll receive a summons that includes your creditor’s Complaint. The Complaint will list the amount you owe and your court date.

It’s ill-advised to ignore a court summons. Instead, you’ll need to file an Answer in response to the lawsuit. An Answer establishes your defense for nonpayment of the debt. You’ll want to consider the different defenses available and select one that applies to your claim. However, you’ll want to ensure that your Answer is truthful.

Watch SoloSuit’s video to learn the six tips for drafting an Answer.

Avoid wage garnishment in Illinois through debt settlement

An Answer prevents the court from automatically granting a creditor or collections agency a default judgment against you. Instead, you’ll have the chance to defend yourself in court.

Once you’ve drafted an Answer, you’ll need to consider the options for resolving the obligation before your court date: You can either pay the debt in its entirety or try to arrange a settlement.

Repaying the debt stops any further collections and legal actions. The court will dismiss the case against you since there’s no longer anything to collect. You’ll want to make sure you get a receipt from the creditor so you have it in case any issues arise.

Another option is settling the debt. A debt settlement occurs when your creditor agrees to accept a portion of the obligation and releases you from the remaining claim. Many creditors will take a lesser amount in a one-time payment if the administrative burden of court and wage garnishment is high.

SoloSettle can help you settle your Illinois debt lawsuit now.

Watch the following video to learn more about debt settlement:

File a claim of exemption to stop wage garnishment in Illinois

If your wages are already being garnished because you lost your debt lawsuit due to a default judgment, you can still file an Emergency Motion to Claim Exemption in Illinois.

If granted, an Emergency Motion to Claim Exemption allows you access to the money in your bank account for an emergency purpose such as the need to pay for your basic necessities like food, rent/mortgage, utilities, etc. You do this by claiming that your money is exempt from garnishment.

Income that is exempt from garnishment in Illinois includes the following:

• Social Security, SSI benefits, and disability
• Pension and retirement benefits and refunds
• Public assistance benefits
• Child support
• Unemployment compensation benefits
• Workers' compensation benefits
• Veterans' benefits
• Circuit breaker property tax relief benefits
• Any other source, up to $4,000 ("wildcard exemption")

For more information on how to file a claim of exemption and stop wage garnishment in Illinois, check out the following guide .

Don’t give in to wage garnishment

While a debt lawsuit can be scary, that doesn’t mean you can ignore it. Take action before your court date. File an Answer and try to repay the obligation or settle it.

Addressing the issue before it becomes too late will protect you from wage garnishment. Otherwise, you’ll see a significant chunk of your weekly income go toward paying off your obligation.

Use SoloSuit’s Debt Answer template to respond to your Illinois creditor’s Complaint.

What is SoloSuit?

SoloSuit makes it easy to fight debt collectors.

You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt.

SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit. (We can help you in all 50 states.)

How to answer a summons for debt collection in your state

Here's a list of guides for other states.

All 50 states .

• Connecticut
• Massachusetts
• Mississippi
• New Hampshire
• North Carolina
• North Dakota
• Pennsylvania
• Rhode Island
• South Carolina
• South Dakota
• West Virginia

Guides on how to beat every debt collector

Being sued by a different debt collector? Were making guides on how to beat each one.

• Absolute Resolutions Investments LLC
• Accredited Collection Services
• Alliance One
• Amcol Clmbia
• American Recovery Service
• Asset Acceptance LLC
• Asset Recovery Solutions
• Associated Credit Services
• Autovest LLC
• Cavalry SPV I LLC
• Cerastes LLC
• Covington Credit
• Crown Asset Management
• CTC Debt Collector
• Cypress Financial Recoveries
• Delanor Kemper & Associates
• Eagle Loan of Ohio
• Estate Information Services
• FIA Card Services
• Forster & Garbus
• Freshview Solutions
• Fulton Friedman & Gullace LLP
• Harvest Credit Management
• Howard Lee Schiff
• Hudson & Keyse LLC
• Integras Capital Recovery LLC
• Javitch Block
• Jefferson Capital Systems LLC
• LVNV Funding
• Mannbracken
• Mariner Finance
• Michael J Adams PC
• Michael J Scott
• Midland Funding LLC
• Mullooly, Jeffrey, Rooney & Flynn
• Mountain Land Collections
• MRS Associates
• National Collegiate Trust
• Nationstar Foreclosure
• Northstar Capital Acquisition
• NRC Collection Agency
• OneMain Financial
• Palisades Collection LLC
• Pallida LLC
• Paragon Revenue Group
• Pinnacle Collections Agency
• Portfolio Recovery Associates
• Provest Law
• Reunion Student Loan Finance Corporation
• Revenue Group
• Regents and Associates
• Salander Enterprises LLC
• Second Round Sub LLC
• Security Credit Services
• Sherman Financial Group
• Suttell and Hammer
• Transworld Systems
• Tulsa Teachers Credit Union
• UCB Collection
• Velo Law Office
• Velocity Investments
• Waypoint Resource Group
• Weinberg and Associates
• Wolpoff & Abramson

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Win against credit card companies

Is your credit card company suing you? Learn how you can beat each one.

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