The bad news for Illinois residents is that the statute of limitations relating to the underlying debt on which the wage garnishment is based are longer than in most states. However, the good news is that Illinois allows less of your income to be garnished than is permitted under federal law or in most other states.
If you are facing wage garnishment, you should know that Illinois also exempts more non-wage types of income than many other states. For example:
- Social Security – These benefits are generally prohibited from garnishment under federal law, except in cases involving child support, alimony, federal taxes or certain other types of debt to the federal government.
- Pensions or Retirement Plans – Most states protect public employee pensions, but private retirement pension benefits like the money in a 401(k) or IRA are also exempt from garnishment.
- Public Benefits or Entitlements – Workers’ compensation, unemployment benefits and veteran’s benefits are some of the protected forms of public assistance.
- Insurance or Annuities – Health or disability benefits and life insurance or annuity proceeds are among insurance benefits that are often exempt.
- Alimony or Child Support – Exempted up to the level needed for support.
If everything you own falls under an exemption, then the creditor is not able to take anything. Are these exemptions still not going to be enough to help you with your situation? Perhaps now is the time for you to consider completing a bankruptcy means test . Our Chicago bankruptcy lawyers can determine whether a Chapter 7 or Chapter 13 filing would benefit you more and help end creditor harassment. If you are facing wage garnishment or have questions about filing for bankruptcy , contact our office today to set up a consultation.
Benjamin Brand Services – Chicago bankruptcy attorneys