Wage Garnishment Lawyer Bloomington IL
A Wage Garnishment Lawyer Bloomington IL Discusses Wage Garnishment and Bankruptcy
As a wage garnishment lawyer Bloomington IL has trusted for over 79 years, Pioletti Pioletti & Nichols Attorneys at Law will leave no stone unturned when it comes to preserving your paycheck from creditors. Hardship can come at any time and for any number of reasons, none of which are a concern for most of your creditors. You need an experienced wage garnishment lawyer in Bloomington IL to defend your rights.
What Is a Wage Garnishment?
A wage garnishment is a mechanism for collecting a debt. Typically, a creditor must first obtain a judgment in court for money owed. They then take that judgment to your employer, whereby the employer is mandated by law to begin deducting a portion of your wages each pay period. The amount that they can deduct depends on how much you are making. Federal law dictates the maximum amount they can deduct is 15 percent of each pay period.
A wage garnishment lawyer Bloomington IL trusts, Pioletti Pioletti & Nichols Attorneys at Law, is experienced in navigating the local laws that govern wage garnishments and how to defend them. Generally, Illinois laws work in your favor and are more restrictive than federal laws. Illinois laws restrict the amount dictated by federal law even further by dictating that wages can only be deducted from your gross wages — the amount of money you earn after taxes and other mandatory deductions are taken out. The amount that is subject to garnishment is further limited to the lesser of the following:
- Fifteen percent of your gross wages
- The amount of gross wages, calculated on a weekly basis, remaining after deducting the Illinois or federal minimum wage (whichever is greater) multiplied by 45.
For example, if your weekly gross wages are $500, 15 percent of that amount is $75. Alternatively, the minimum wage in Illinois in 2017, $8.25, multiplied by 45 is $321.25. The difference between $500 and $321.25 is $128.75 so the lesser amount between the two calculations, $75, would be deducted each week. Weekly gross wages would have to be $377.94 or less for the minimum wage-based calculation to apply.
Who Can Garnish Your Wages?
Consumer creditors, which can include credit cards, banks, or medical creditors may garnish your wages only after receiving a court judgment. Debts for which garnishments do not require a court judgment are:
- Court-ordered child support payments
- Child support arrears
- Student loans that are in default
- Unpaid income taxes
Stop Wage Garnishment with Bankruptcy
Bankruptcy should not be taken lightly, as there are many considerations for how a bankruptcy might affect your future. The wage garnishment lawyer Bloomington IL relies on for our honest and straightforward council is here to cover all these bases with you.
While there are exceptions to the rule in some rare situations, the most effective way to stop a wage garnishment or prevent one from beginning can be to file for bankruptcy. When a chapter 7 or chapter 13 bankruptcy is filed, an automatic stay goes into effect.
Even though it may be a week or more before the garnishment is removed, any money garnished after the bankruptcy is filed will be returned. In addition to wage garnishments, all repossessions, bank account garnishments, and creditor calls and letters will stop as well. Let the wage garnishment lawyer Bloomington IL has turned to for four decades guide you through this process.
Your Bloomington wage garnishment lawyer, Pioletti Pioletti & Nichols, is committed to working with people to help them obtain debt relief and stop wage garnishments. If your employer is garnishing your wage, contact Pioletti Pioletti & Nichols, the wage garnishment lawyer Bloomington IL trusts for a free consultation to discuss what options you may have.
Who Can File for Bankruptcy?
Almost any person or business can file for bankruptcy. However, the party must either have a permanent residence, a place of business, or own property within the United States. The party filing may also have to attend a financial counseling course, depending on their situation. Being eligible to declare bankruptcy does not mean the party applying will be automatically approved. An evaluation must be performed and the applicant will receive notice of the approval or denial. Those who are unsure about whether they are eligible to file for bankruptcy may want to meet with a wage garnishment lawyer for more information.
Which Chapter Should I File For?
The majority of people declaring bankrupting either opt for either Chapter 7 or Chapter 13. There are crucial differences between these two chapters, and it is important that the applicant understands they are not the same. Here we have defined each type of bankruptcy, but if you still want help deciding which is best for you, then you may want to meet with a wage garnishment lawyer for guidance:
- Chapter 7 Bankruptcy: Often entails quick discharge of debts related to credit cards, personal loans, and medical care bills. Those who declare chapter 7 will not have to pay into a repayment plan, but may have to give up a portion of their property. Specifically, the applicant may have the items on loan which are also behind on payments repossessed. The applicant must have an income lower than a designated amount in order to qualify.
- Chapter 13 Bankruptcy: Those who want to keep their belongings, such as homes or a vehicle, may want to file for chapter 13 instead. But in exchange for keeping your property, they have to make enough earnings to pay into a three to five-year repayment plan. Also, the total debt accumulated must not exceed the maximum limits for unsecured and secured debts.
Secured debts are things like vehicle and property loans, while unsecured debt can be your utilities and credit card bills.
Is There a Specific Amount of Debt I Must Have in Order to File for Bankruptcy?
There is no debt amount requirement that a person must meet in order to declare bankruptcy. What is more important is how much you make in relation to how much debt you have. Depending on your salary and your living expenses, you may not have extra money left over to pay into your debts every month. Those who live paycheck to paycheck without an anticipated wage increase may quickly get behind on payments. If this rings true for you, then you may want to meet with a wage garnishment lawyer for advice on what to do next. There are many pros and cons to filing for bankruptcy, so the applicant may want to get legal advice first.
Declaring bankruptcy can have both short term and long term impacts. A wage garnishment lawyer Bloomington IL clients recommend can consult with you about your finances and help you decide which bankruptcy chapter may be most suited based on your situation.
“Michael was a huge help to me with my issues. I feel as if he genuinely cared for me as a client.”