How to Stop Wage Garnishment in Illinois

When a creditor obtains a garnishment judgment against you, it represents a court order to deduct part of your income from your paycheck and pay it to the creditor instead of you. If your income is being garnished in Illinois, there are several things that you can do about it. You may be able to stop or reduce the garnishment amount, even if the debt is valid.

Part 1

Part 1 of 4:

Claiming Exemptions

1
Request a hearing to dispute the garnishment. When a creditor initiates the process of garnishing your wages, they must send you a notice to that effect. If you believe the garnishment is invalid in some way, or if you believe you can claim an exemption, you have the right to ask for a hearing to make your case in front of a judge.^{[1]XResearch source}
- You must do this on or before the return date, which is the date listed on the notice that represents the date and time your case will be heard in court.^{[2]XResearch source}
- Your employer must usually begin withholding your wages immediately after receiving the notice from your creditor. Your employer then holds these wages until a judge issues a court order directing payment of those funds to your creditor.^{[3]XResearch source}
2
Verify the amount due. Ensure that the total amount being withheld is correct. In Illinois, a garnishment is a continuing garnishment. This means it will continue to be applied until the entire debt is paid off. If the amount being garnished is incorrect, you should make an exemption claim to correct the amount being withheld.
- Compare the amount of the garnishment to the amount of the judgment.
- Add any attorney fees for obtaining the garnishment. This should be listed on the garnishment.
- Add any interest that has accrued. This should also be listed on the garnishment.
3
Calculate your disposable income. Most exemptions are based on how much disposable income you have. Therefore, you should first calculate your disposable income so you can use this amount to determine if you qualify for any exemptions to wage garnishment. To calculate your disposable income:^{[4]XResearch source}
- Start with your gross pay.
- Subtract the amount of any mandatory deductions, which in Illinois are: federal, state, and local taxes; social-security payments; required disability and retirement contributions; and mandatory union dues and health insurance.
- The resulting total is your disposable income.
4
Calculate whether you meet the Illinois income exemption. Illinois law provides greater protection than federal law. Under Illinois law, creditors can only garnish the lesser of (1) any amount of your disposable income that exceeds 45 times the federal or Illinois hourly minimum wage (whichever is higher) or (2) 15% of your gross pay.
- The current federal minimum wage is $7.25/hour.^{[5]XTrustworthy SourceUS Department of LaborFederal department responsible for promoting the wellbeing of workersGo to source} The current minimum wage in Illinois is $8.25/hour.^{[6]XResearch source} Since the Illinois minimum wage is higher, you will use that amount for this calculation.
- Due to the above figures, if you net less than $371.25 per week, nothing can be garnished.
- Be aware that certain types of wage garnishment, such as that for child-support payments, can exceed this number—as high as 65% of your disposable income.
5
Check to see if the income being garnished is exempt. Certain types of income are, by law, exempt from garnishment. If any of the following are being garnished, you can claim that they are exempt at the hearing to have them excluded from garnishment:
- Social-security benefits.
- Railroad Act retirement benefits.
- Veterans' benefits.
- Other government benefits, such as unemployment insurance benefits or welfare.
- Pension payments.
- Proceeds of student loans.
- Child-support, maintenance, or alimony payments.
If the amount of the valid garnishment keeps you from meeting your basic obligations (such as food, housing, and health needs), you can argue for an exemption on this basis. Collect evidence to support your claim, like rent or mortgage payments, grocery bills, or medical bills.
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Part 2

Part 2 of 4:

Making Your Claim of Exemption

1
Attend the hearing. On either the return date or the date of your requested hearing, you will need to go to court and explain to the judge why the garnishment should either be cancelled or adjusted.^{[7]XResearch source} Be sure to appear in court at the date, time, and place specified in the return date (or, if you requested and were granted an earlier hearing, use that information).
- Dress professionally for the hearing.
2
Follow proper procedure. There is a simple procedure to follow once you arrive at the courthouse for your hearing. After arriving, do the following:^{[8]XResearch source}
- There should be a bulletin board outside of your specified courtroom on which the scheduled court cases for the day are listed.
- Find your case on that list. There will be a number (known as a "line number") to the left of your case listing.
- Enter the courtroom and wait in line to give the clerk your name and line number or, if no line number was listed, to tell the clerk your case is not on the list. Wait for your case to be called.
- When it is called, go to the front of the courtroom and tell the judge your name.
3
Present your defense. Once you have introduced yourself, it is time to present your case. You will want to draw the judge's attention to any factual inaccuracies regarding your wages, your debt, or the amount being withheld. If the amount being garnished is incorrect, tell this to the judge and detail the amount that should be withheld.^{[9]XResearch source} This is also the time to argue that you meet any of the above exemptions.
- During the hearing, speak only to the judge and court personnel, not to the creditor.
After both you and your creditor have had an opportunity to present your respective cases, the judge will issue his or her ruling in the case. Whatever the outcome, make sure to obtain a signed copy of the judge's order, as this will govern your actions going forward and/or provide the basis for a potential appeal.^{[10]XResearch source}
If the judge rules against you, you can file for an appeal of the decision. After the court's judgment, you have 30 days to file a Notice of Appeal stating that you want to appeal the decision. Talk to an attorney about the specific facts of your case to decide whether you're likely to be successful with your appeal.
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Part 3

Part 3 of 4:

Determining if the Judgment is Valid

The statute of limitations establishes a date on which a legal claim is too old to be enforced. In Illinois, the statute of limitations on a judgment is 20 years. If the judgment being enforced against you is greater than 20 years old, it is invalid and cannot be used as a basis for wage garnishment.^{[11]XResearch source}
2
Check to see that the creditor complied with statutory requirements. Creditors must comply with Illinois state law governing wage garnishment. If any of the following are true, the statutory requirements have not been met and the judgment is invalid:
- You must have been given notice of the garnishment and an opportunity to present your side of the case.
- You must have been given the option to pay your debt prior to judicial intervention.
- You must have been provided a notice of the garnishment judgment at the time garnishment begins detailing the amount of the judgment, the creditor's name, the maximum amount of your wages that may be garnished, and that you have the option of requesting a hearing to dispute the judgment.
If the court that issued the garnishment judgment did not have the proper jurisdiction to do so, the judgment is invalid.Whether or not a particular court has proper jurisdiction is a question best answered by an attorney, as there are varying types of jurisdiction established by statute, and determinations of jurisdiction are often complicated legal inquiries.
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Part 4

Part 4 of 4:

Considering Other Options

1
Pay the judgment in full. The quickest way to stop wage garnishment is to pay the amount of your debt in full. Try to do this as quickly as you are able to protect your credit rating. If you are able to pay the amount of the judgment in full, make sure to ask your creditor to sign a Satisfaction and Release of Judgment form which you will file with the court to show your debt has been paid in full.
- If your creditor refuses to sign such a form despite you having paid your debt in full, you can file a motion to ask the judge to sign the form releasing you from debt.
2
Pay the judgment in installments. If you cannot pay the full amount of your debt, try talking with your creditor to see if you can make regular, smaller payments to satisfy your obligation, rather than having your wages garnished.
- If your creditor agrees, put the payment plan in writing and have your creditor sign it.
- Even if your creditor doesn't agree, the judge can order an installment-payment plan to pay off a small-claims judgment. Having such a plan can stay the garnishment judgment (meaning it won't be enforced while you are making payments), but the plan must pay off the entire debt within three years.^{[12]XResearch source}
- Make sure you can make the payments if you seek a court-ordered payment plan, because you can be held in contempt for not making them.
3
File for bankruptcy. Your last resort is to file for bankruptcy. This should truly be your last resort as this will stay on your credit report for up to 10 years, seriously affecting your ability to secure additional credit or obtain loans.^{[13]XResearch source}
- The benefit is that your creditors cannot garnish your wages during bankruptcy proceedings because initiating bankruptcy proceedings places an automatic stay on any collection actions against you.^{[14]XResearch source}
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Tips

Federal and Illinois law prevents your employer from taking any adverse employment action against you due to the fact you have a single garnishment order entered against you.^{[15]XResearch source} However, if you have more than one, you are no longer protected from such action.
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Warnings

You should strongly consider getting an attorney to help you through this complicated legal and financial situation, especially if you plan to initiate bankruptcy proceedings. This type of legal action/decision is not to be taken lightly.
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