In Illinois, judgment creditors are capable of “wage garnishment” via a court order, meaning a certain percentage of your professional wages is transferred to the creditor before you even receive it in order to pay debt. This, of course, requires a “valid judgment debt” as determined by the court and creditors must file actions in court to claim a percentage of your wages, typically around 15% and no more than 25% according to federal law; Social Security and retirement benefits are typically exempt from garnishment, as well.If your wages are being garnished, you may be able to halt this process via Chapter 7 bankruptcy. Chapter 7 provides you the opportunity to temporarily delay all collection efforts by creditors and even fully discharge the debt which resulted in wage garnishment. Filing for Chapter 7 immediately imposes an “automatic stay,” a period in which collection efforts against you are halted. Remember that although your debt will eventually be discharged in most cases, debt which is not discharged may result in a creditor resuming wage garnishment after bankruptcy. Also keep in mind the select few exceptions to the automatic stay: one is child support-related actions, while in rare cases a creditor may request that the judge lift the stay so it may resume collection or garnishment efforts.If you’re struggling financially and feel like you’re out of options, you are not alone. Consider filing for Chapter 7 bankruptcy and contact an experienced bankruptcy attorney today.
Chapter 7 and Wage Garnishment
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