Stopping Wage Garnishments
If a creditor obtains a court judgment for defaulted debt, the creditor is permitted to garnish the debtor's wages to pay the debt. Under Illinois law, the creditor can garnish 15% of the debtor's wages until the claim is paid in full. The resulting reduction of income often renders debtors unable to pay their living expenses and other debts.
The debtor can put a stop to the garnishment by filing bankruptcy. Once a bankruptcy is filed, whether under Chapter 7 or Chapter 13, the creditor is required to terminate the garnishment. Any funds garnished subsequent to the bankruptcy filing must be returned to the debtor.
If you have any questions regarding bankruptcy remedies available in a wage garnishment situation, please call us for a free consultation.