Wage Garnishment in Illinois: What the Law Says and What Bankruptcy Changes

How much of your pay can be garnished in Illinois?

Illinois sets the ordinary limit in its wage deduction statute. The wages, salary, commissions, and bonuses subject to collection under a deduction order for any work week are the lesser of (1) 15% of the gross amount paid for that week, or (2) the amount by which disposable earnings for a week exceed 45 times the applicable minimum hourly wage (735 ILCS 5/12-803). For a wage deduction summons served on or after January 1, 2006, the comparison uses the greater of the federal minimum hourly wage or the Illinois minimum wage under 820 ILCS 105/4, measured in effect at the time the amounts are payable.

Two details change the result. The 15% figure runs on gross pay, not take-home pay. And "disposable earnings" means earnings remaining after deducting only amounts required by law to be withheld, not every voluntary payroll deduction. Federal law sets its own separate ceiling (15 U.S.C. § 1673).

• The statute applies regardless of where the compensation was earned or payable and regardless of the state where the employee resides (735 ILCS 5/12-803).
• No amounts required by law to be withheld may be taken from the amount collected by the creditor (735 ILCS 5/12-803).
• An ordinary deduction order is entered on the employer's answer, with deducted wages remitted monthly; a federal agency employer instead pays under subsection (b-5) when the creditor is represented by an attorney (735 ILCS 5/12-808).

What do Illinois statutes require of creditors and courts?

Illinois runs three distinct procedures, and they are not interchangeable. Part 8 wage deduction reaches wages. Part 7 garnishment reaches money or property other than wages (735 ILCS 5/12-701). A citation to discover assets under 735 ILCS 5/2-1402 examines a debtor or third party for non-exempt assets or income.

For wages, the creditor files an affidavit plus written interrogatories, and must certify that the wage deduction notice was mailed to the judgment debtor before filing (735 ILCS 5/12-805). The clerk issues summons to the employer, returnable not less than 21 nor more than 40 days after issuance; if the employer is served fewer than 3 days before the return date, the court continues the case to a new return date not less than 21 days after service (735 ILCS 5/12-806).

The employer ordinarily must answer the interrogatories in writing under oath and mail or deliver the judgment debtor a copy. One branch differs: if the employer is a federal agency and the creditor is represented by an attorney, it pays non-exempt wages to that attorney; the periodic payments are a sufficient answer to the interrogatories, and the attorney answers to the court (735 ILCS 5/12-808).

Which income is protected from garnishment under Illinois law?

Pension and retirement protections are explicit. Benefits and refunds payable by pension or retirement funds or systems, any assets of employees held by such funds, and any monies an employee is required to contribute to them are exempt and not subject to a deduction order under Part 8; an ERISA-governed plan counts as a retirement fund for that Part (735 ILCS 5/12-804). A parallel provision applies to Part 7 garnishment (735 ILCS 5/12-704), and a broader retirement-plan exemption appears at 735 ILCS 5/12-1006.

Several provisions carry no stated dollar cap, but what they protect is the debtor's right to receive the benefit: a social security, unemployment compensation, or public assistance benefit (735 ILCS 5/12-1001(g)(1)), a veterans' benefit (735 ILCS 5/12-1001(g)(2)), and a disability, illness, or unemployment benefit (735 ILCS 5/12-1001(g)(3)). That is narrower than protecting every deposited or traced dollar.

One limit: the personal property exemptions of 735 ILCS 5/12-1001 do not apply against wages required to be withheld in a Part 8 wage deduction proceeding.

Which statutory protections may matter when contesting a deduction?

Illinois gives the judgment debtor a route to a hearing, and the method depends on county population. At any time on or before the return date, the debtor may request a hearing to dispute the wage deduction because the wages are exempt, by notifying the clerk before that time, using forms the clerk may provide. In counties with a population of 1,000,000 or more, the debtor must notify the clerk in person and in writing at the clerk's office before the return date specified in the summons, or appear in court on the date and time specified. In counties under 1,000,000, written notice to the clerk's office on or before the return date is what the statute requires. The clerk provides the hearing date and the forms the debtor or the debtor's attorney must prepare and send to the creditor and the employer (735 ILCS 5/12-811).

No deduction order may be entered for the creditor unless the creditor's affidavit certifies that the wage deduction notice was mailed to the judgment debtor under 735 ILCS 5/12-805. The employer's answer must ordinarily include a summary of the computation of non-exempt wages, but a federal agency employer instead identifies the computation method on or with its periodic payments and need not supply that summary (735 ILCS 5/12-811). A person who wrongfully causes a deduction summons to issue may be liable for damages including reasonable attorney's fees (735 ILCS 5/12-817).

• Illinois prohibits an employer from discharging or suspending an employee because earnings were subjected to a deduction order for any one indebtedness (735 ILCS 5/12-818).
• Federal law separately bars discharge for garnishment of any one indebtedness (15 U.S.C. § 1674), and does not displace stricter state protections (15 U.S.C. § 1677).

How does filing bankruptcy affect an Illinois garnishment?

A voluntary bankruptcy case is commenced by filing a petition, and that filing constitutes an order for relief (11 U.S.C. § 301). The filing of a petition generally operates as a stay, applicable to all entities, of the enforcement against the debtor or against property of the estate of a judgment obtained before the case began, and of acts to collect a prepetition claim (11 U.S.C. § 362(a)). That operation does not depend on a separate court order; notices matter practically, but they are not what creates the stay.

The qualifications are real. Section 362(b) lists exceptions, including withholding of income for payment of a domestic support obligation under a judicial or administrative order or a statute (11 U.S.C. § 362(b)(2)(C)). On request of a party in interest, and after notice and a hearing, the court shall grant relief from the stay for cause and on other listed grounds (11 U.S.C. § 362(d)). A creditor's request is not itself relief. Repeat filings within a year carry their own limits.

• Illinois's own statute recognises that a debtor's bankruptcy filing can be a lawful excuse terminating the employer's obligation under a deduction order (735 ILCS 5/12-808).
• Except as subsections (d), (e), (f), and (h) provide, the stay under § 362(a) of acts against estate property continues until it is no longer property of the estate; the stay of other acts covered by § 362(a) ends at the earliest of case closing, dismissal, or — in a chapter 7 case concerning an individual or a case under chapter 9, 11, 12, or 13 — the time a discharge is granted or denied (11 U.S.C. § 362(c)(1)–(2)).

Can you use the federal exemption list as an Illinois filer?

Illinois has opted out. Residents of the state are prohibited from using the federal exemptions provided in § 522(d), except as may otherwise be permitted under Illinois law (735 ILCS 5/12-1201). That provision concerns the § 522(d) list specifically. It does not speak to other federal exemptions, or to qualifying retirement funds exempt from taxation under the listed Internal Revenue Code sections, which § 522(b)(3)(C) addresses separately.

Which state's list applies is a separate question answered by federal law. Under 11 U.S.C. § 522(b)(3)(A), the applicable state or local law is that of the place where the debtor's domicile was located for the 730 days immediately preceding the filing. If the domicile was not in a single state for that 730-day period, the place used is where the domicile was located for the 180 days immediately preceding those 730 days, or for a longer portion of that 180-day period than in any other place. If the domiciliary requirement would leave the debtor ineligible for any exemption, the debtor may elect the § 522(d) list.

What should you ask a lawyer about an Illinois garnishment?

This page summarises statutes. It cannot tell you which procedure a creditor used, what your local court rules require, or what a figure means on your pay stub — ask a lawyer or legal aid. Ask whether your records identify income protected under the provisions above.

• Bring the summons, the wage deduction notice, your recent pay stubs, and any employer answer you received.
• Ask what the court costs and the employer's statutory fee add to the balance (735 ILCS 5/12-814).
• Ask how judgment interest is accruing on the balance (735 ILCS 5/2-1303).

Frequently asked questions

Is the Illinois limit 15% of my take-home pay?

No. The 15% figure is measured against the gross amount paid for the work week, and it is only one half of the test. The amount subject to collection is the lesser of that 15% and the amount by which disposable earnings exceed 45 times the applicable minimum hourly wage (735 ILCS 5/12-803). Disposable earnings deduct only amounts required by law to be withheld, not voluntary deductions.

Does the ordinary Illinois cap apply to child support withholding?

No. Part 8 of Article XII does not apply to orders for withholding of income entered under the listed Illinois statutes for support of a child or maintenance of a spouse (735 ILCS 5/12-819). Federal law also exempts support orders from its ordinary ceiling, along with orders of a United States court having jurisdiction over chapter 13 cases and debts due for state or federal tax (15 U.S.C. § 1673(b)).

What happens to the stay if I had a bankruptcy case dismissed last year?

Under 11 U.S.C. § 362(c)(3), if a single or joint case is filed by or against an individual under chapter 7, 11, or 13 and a case of the debtor was pending within the preceding 1-year period but was dismissed — other than a case refiled under a chapter other than chapter 7 after dismissal under § 707(b) — the stay as to actions regarding a debt, property securing it, or a lease terminates with respect to the debtor on the 30th day after the later filing. A party in interest may move to extend it, after notice and a hearing completed before that 30-day period expires, only by showing the later filing is in good faith as to the creditors to be stayed.

What if two or more of my prior cases were dismissed?

Under 11 U.S.C. § 362(c)(4), a separate rule applies. If a single or joint case is filed by or against a debtor who is an individual under this title, and 2 or more cases of the debtor were pending within the previous year but were dismissed (other than a case refiled under a chapter other than chapter 7 after dismissal under § 707(b)), the stay does not go into effect upon the filing of the later case. On a request by a party in interest within 30 days after that filing, the court may order a stay as to any or all creditors, after notice and a hearing, only on a showing of good faith as to the creditors to be stayed. Such a stay is effective when the order allowing it is entered.

Can my employer fire me over a wage deduction order?

Illinois law states that no employer may discharge or suspend any employee by reason of the fact that earnings have been subjected to a deduction order for any one indebtedness, and a violation is a Class A misdemeanor (735 ILCS 5/12-818). That protection is about discharge and suspension for one indebtedness. It is not a remedy for withholding the wrong amount, and it does not address an unlimited number of separate debts.

Is my bank account covered by the same rules as my wages?

No. A bank account is reached through a different procedure: garnishment under Part 7 covers property other than wages (735 ILCS 5/12-701), and a citation to discover assets runs under 735 ILCS 5/2-1402. Illinois also provides an automatic exemption in a checking or savings deposit account for a judgment debtor against whom a qualifying consumer debt judgment was entered on or after January 1, 2020. It is part of the other-property exemption, not an addition to it. The right to receive it expires on the return date, and the unspent portion is subject to a court order turning it over to the creditor. The debtor or the debtor's attorney should appear on the return date to claim the personal property exemption; if neither appears, the court may order the funds turned over, including the automatic exemption (735 ILCS 5/12-1001.1).

Sources

• 735 ILCS 5/12-803 — Wages subject to collection
• 735 ILCS 5/12-801 — Definitions
• 735 ILCS 5/12-804 — Exemptions from deduction orders
• 735 ILCS 5/12-805 — Summons; Issuance
• 735 ILCS 5/12-806 — Service and return of summons
• 735 ILCS 5/12-808 — Duty of employer
• 735 ILCS 5/12-811 — Trial and judgment
• 735 ILCS 5/12-814 — Costs and fees
• 735 ILCS 5/12-817 — Wrongful issuance of summons
• 735 ILCS 5/12-818 — Discharge or suspension of employee prohibited
• 735 ILCS 5/12-819 — Limitations on Part 8 of Article XII
• 735 ILCS 5/12-701 — Affidavit for garnishment; Contents
• 735 ILCS 5/12-704 — Exemptions from garnishment
• 735 ILCS 5/12-705 — Summons
• 735 ILCS 5/2-1402 — Citations to discover assets
• 735 ILCS 5/2-1303 — Interest on judgment
• 735 ILCS 5/12-1001 — Personal property exempt
• 735 ILCS 5/12-1001.1 — Automatic exemption
• 735 ILCS 5/12-1006 — Exemption for retirement plans
• 735 ILCS 5/12-1201 — Bankruptcy exemption
• 735 ILCS 5/12-1001(g)(1)
• 735 ILCS 5/12-1001(g)(2)
• 735 ILCS 5/12-1001(g)(3)
• 820 ILCS 105/4 — Minimum Wage Law, Section 4
• Ill. S. Ct. R. 277 — Supplementary Proceedings
• 11 U.S.C. § 301 — Voluntary cases
• 11 U.S.C. § 362 — Automatic stay · official source
• 11 U.S.C. § 522 — Exemptions · official source
• 15 U.S.C. § 1673 — Restriction on garnishment
• 15 U.S.C. § 1674 — Restriction on discharge from employment by reason of garnishment
• 15 U.S.C. § 1677 — Effect on State laws

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