UPDATE: Using Non-Wage Garnishment to Collect Debt

 Posted on May 15, 2023 in Debt Collection

Originally published: April 19, 2017 -- Updated: May 15, 2023

Update: As described below, there are options available for creditors who need to collect debts from debtors who have limited income that may be recovered through wage garnishment. However, it is important to understand what limits may apply to the amounts that can be garnished from a debtor’s wages. This may help creditors determine what avenues to pursue when collecting debts following a legal judgment against a debtor.

Illinois law states that one of the following methods may be used to determine the amount that can be deducted from a debtor’s wages:

• Multiply a person’s gross weekly wages by 15 percent. This is usually the maximum amount that may be garnished from a person’s wages.

• Determine how much of a person’s disposable earnings in a week exceed 45 times the minimum wage. Currently, the minimum wage in Illinois is $13.00 per hour, and $13.00 times 45 is $585.00. This amount may be deducted from a person’s net wages after taxes and mandatory deductions have been taken out to determine the amount that may be garnished.

The lesser of the two amounts listed above will be the amount that may be garnished from a person’s wages. If a person’s net wages are $585 per week or less, they will not have any income available for garnishment, and a creditor may need to determine what other options may be available to collect the debts that are owed. As discussed below, non-wage garnishment may be used to seize the funds in a debtor’s bank account, or a debtor may be required to sell other assets, such as vehicles or jewelry. In some cases, a creditor may be able to place a lien on real estate or other assets owned by the debtor.

Contact Our Chicago Wage Garnishment Lawyers

While orders for wage garnishment are often the best method available to creditors who are seeking to enforce judgments against debtors, the ability to collect debts may be limited in situations where debtors have limited income. At Dimand Walinski Law Offices, P.C., our Illinois creditors’ rights attorneys can help determine whether wage garnishment or non-wage garnishment may be the preferred option for collecting debts, and we can ensure that creditors follow the correct procedures when seeking garnishment orders, freezing bank accounts or other assets, placing liens on property, and recovering the amounts owed to them. Contact our firm at 312-704-0771 to schedule a consultation and learn more about our services.

Sources:

https://www.ilga.gov/legislation/ilcs/fulltext.asp?DocName=073500050K12-803

https://www.ilga.gov/legislation/ilcs/documents/074001700K4.htm