• How to Survive Garnishment in Illinois

    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

  • Illinois To Provide $78 Million To Help Banks, Lenders

    Gov. Pat Quinn said the state will leverage $78 million in federal funding to help banks and other lending institutions as part of a new state initiative that will help small businesses get the financing they need to start up or expand, Crain’s Chicago Business reported on October 5, 2011. The initiative, called Advantage Illinois, will have Illinois’ Department of Commerce and Economic Opportunity enroll lending institutions.

    Crain’s reported that lenders will provide financing to businesses by either “encouraging banks to give loans to business that do not qualify for conventional loans, allowing the state to buy part of a loan for businesses and establishing accounts to provide collateral so businesses can get loans.”

    With Illinois now intending to offer millions in funding to help businesses, do you find yourself wondering where the help for consumers is? Our Chicago bankruptcy lawyers understand that families all over Illinois are seeking any type of foreclosure help that will offer some debt relief as bills continue to mount. If you have been struggling through hard times, you should know that after a bankruptcy means test determines whether you should file for Chapter 7 or Chapter 13 bankruptcy, either choice could help eliminate or consolidate your debt, stop foreclosure and help you become debt free and credit rich. If you have additional questions about bankruptcy , contact our firm today to set up a consultation and take the first step to end creditor harassment. And if you have thoughts on the governor’s latest initiative to give more money to banks, our Chicago bankruptcy attorneys invite you to share your thoughts below.