Oak Park Real Estate & Estate Planning Blog

What is the relationship between wage garnishment and bankruptcy in Illinois ? Many consumers learn that they could have their wages garnished, or receive information about their wages being garnished as a result of a judgment. They also often hear that they may be eligible to stop the wage garnishment by filing for personal bankruptcy . In many cases, filing for consumer bankruptcy can stop a garnishment, but it is important to understand how wage garnishment works and then how bankruptcy laws might stop a wage garnishment. What is Wage Garnishment? Many debtors in the Oak Park area have heard of wage garnishment, but confusion still exists about this term. In short, wage garnishment refers to a process of collecting on a judgment against a debtor (although garnishments can also affect companies and other entities) by having that debtor’s employer deduct a certain amount from his or her paycheck. In some cases, garnishment can also affect a debtor’s personal property that is not exe...

Are your wages currently being garnished in Illinois, or do you have concerns that your wages will soon be garnished? You should speak with an Oak Park bankruptcy lawyer to learn more about how filing for Chapter 7 bankruptcy can stop or prevent wage garnishment. Under Illinois law ( 735 ILCS 5/ ), wage garnishment can occur in many different situations. To better understand how consumer bankruptcy may be able to provide you with relief, it is important to learn more about what we mean by wage garnishment, when and how it can be used, and how filing for personal bankruptcy can help. Learning More About Wage Garnishment What is wage garnishment, and what does it have to do with personal bankruptcy? Wage garnishment can happen in any state, and it is a deduction that your employer automatically takes from your paycheck as a result of a court order. For example, if you owe a significant amount of money to a creditor and the creditor sues you in order to recover what you ...