Court-ordered wage garnishment is one way that your creditors can enforce a judgment against you in the state of Illinois. However, Illinois state law sets a limit on the amount that can be garnished from your paycheck. If you are a low wage-earner, the amount that can be garnished from your check may be exactly $0.
Understanding Garnishment
If you fail to pay back an unsecured debt, such as a credit card debt, your creditor cannot strong-arm your employer into garnishing your wages. First, the creditor must file a civil suit against you in court and submit proof that you owe the debt. If the court rules in favor of your creditor, your creditor then has a judgment against you for the monetary amount the court determines is owed. However, the creditor must then find a way to enforce the judgment -- that is to say, to the creditor must take additional steps to collect money from you. Wage garnishment is one option for creditors in the state of Illinois.
Federal Garnishment Laws
Federal law determines the maximum amount that can be garnished from your checks, regardless of your state of residence. The amount of garnishment cannot exceed 25 percent of your disposable weekly income; or the amount by which disposable weekly income exceeds 30 times the federal minimum wage -- whichever figure is less. Each state has its own unique set of garnishment laws -- a state can choose to impose lesser limits, and some states, such as Texas and Pennsylvania, prohibit creditors from using wage garnishment as a way to enforce a judgment. However, a state cannot permit your wages to be garnished in excess of the amount established by federal law.
Wage Garnishment in Illinois
Illinois' Code of Civil Procedure states that the amount that can be set aside for wage garnishment is limited to the lesser of 15 percent of your gross weekly earnings, or the amount by which your disposable weekly income exceeds the Illinois' state minimum wage, which is $8.25 as of January 2011, multiplied by 45. Your gross weekly earnings are what you make before federal and state income taxes, Social Security and Medicare (FICA) taxes and court-ordered child support payments are withheld. Your disposable weekly earnings are essentially what you take home after all of these legal deductions are taken out.
Calculating Garnishment
Calculating wage garnishment gets tricky, as it requires you to use two formulas. For example, assume your gross weekly earnings are $750 -- 15 percent of this amount is $112.50. However, your disposable weekly earnings, with legal deductions such as taxes withheld, are $625 -- 45 times $8.25 is $371.25. Subtract $371.25 from $625, for a total of $253.75. In this case, 15 percent of your gross income, $112.50 (the lesser amount) is the amount that can be garnished from your wages.
No Garnishment
If your income falls below a certain threshold, your wages cannot be garnished. If you gross $260 a week, 15 percent of this amount is $30. However, using the secondary formula, the following is derived using your disposable weekly earnings: $200 (your check after legal withholdings) - $371.25 (45 times the Illinois minimum wage) = $-171.25. The lesser amount, being a negative number, indicates that your wages are not high enough to warrant garnishment.
Other Tips
There are other types of debt besides credit card debt. The court-ordered wage garnishment described above applies only when creditors attempt to enforce a judgment. Garnishment also pertains to money your employer withholds from your earnings for child support, for example. Different maximum limits apply if you owe federal or state income taxes, child support or if you default on a student loan. Social Security benefits are typically exempt from garnishment, except if you owe federal taxes or back child support or spousal support.
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