Illinois Non-Wage Garnishment Notice

State:
Illinois
Control #:
IL-P1-MISC-46
Format:
PDF
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Description

Non-Wage Garnishment Notice

The Illinois Non-Wage Garnishment Notice is a form used by creditors to collect debt from debtors in the state of Illinois. It is a legal notice sent to debtors informing them that their wages may be subject to garnishment, which is a legal process that allows creditors to collect money or property from debtors who owe them money. There are two types of Illinois Non-Wage Garnishment Notices: one for consumer debt and one for delinquent student loan debt. The consumer debt notice is sent to debtors when they are behind on payments to creditors, such as credit card companies, medical bills, or personal loans. The delinquent student loan debt notice is sent to debtors when they have failed to make payments on their student loan debt. Both notices inform debtors of their legal rights and responsibilities, as well as the consequences of not paying their debts.

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FAQ

The Debt Collection Improvement Act authorizes federal agencies or collection agencies under contract with them to garnish up to 15% of disposable earnings to repay defaulted debts owed to the U.S. government.

In Texas, wage garnishment is prohibited by the Texas Constitution except for a few kinds of debt: child support, spousal support, student loans, or unpaid taxes. A debt collector cannot garnish your wages for ordinary debts. However, Texas does allow for a bank account to be frozen.

The most the employer can hold out for you is 15% of the debtor's gross income before taxes or deductions. However, the withholding can't leave the debtor with less than 45 times the state minimum wage as weekly take-home pay.

The total amount garnished cannot be more than 25% of the employee's monthly disposable earnings. Exemptions from garnishment, including, but not limited to, worker's compensation, unemployment compensation, disability payments, OWF payments, or child support or spousal support, and most pensions.

Non-wage garnishment is the judgment creditor's attachment, after judgment, of the judgment debtor's property, other than wages, which is in the possession, custody or control of third parties. Example: A creditor files a non-wage garnishment to attach funds your client has deposited in the local bank.

A creditor can garnish whichever is less: up to 25% of your disposable earnings or the amount of your disposable earnings that's more than 30 times the federal minimum wage (currently $217.50).

We often get asked, how do I stop IRS wage garnishments, and what is the maximum amount the IRS can garnish from your paycheck? Generally, the IRS will take 25 to 50% of your disposable income. Disposable income is the amount left after legally required deductions such as taxes and Social Security (FICA).

Wage Garnishment in Illinois In Illinois, if a creditor wins a court judgment against you, the maximum your employer can garnish from your weekly earnings is either 15 percent of your earnings or the amount left over after you deduct 45 hours' worth of Illinois' minimum wage.

More info

NOTICE: The Court has issued a Garnishment Summons against the Garnishee named above for money or property (other than wages). Non-wage garnishment is when the money is taken directly out of your bank account.An execution allows. NOTICE: The court has issued a garnishment summons against the garnishee named above for money or property. Debtors should be aware that their bank may freeze their account as soon as they receive notice of the nonwage garnishment. Notice to Debtor of Non-Wage Garnishment and Exemptions. There's not much someone can do about a creditor's lawsuit or your wages being garnished. (NON-WAGE GARNISHMENT). You must provide this form along with instructions (Form3) NE8150-053 to the garnishee. FORM 7 - NOTICE TO JUDGMENT DEBTOR OF GARNISHMENT.

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Illinois Non-Wage Garnishment Notice