Incomes Growing Faster than Debt in US
Creditors have a myriad of choices when they need to collect a debt from an individual. When all other attempts to collect the debt are unsuccessful, creditors often demand that a debtor’s wages be garnished or deducted.
Wage deduction is the last option for debt collectors. Debt collectors will work with a debtor’s employer to have funds depleted from his/her income to satisfy the debt.
A creditor who opts for this option must go to court and follow due legal process.
How to File for Wage Deduction?
The law first requires that a creditor formally notify all parties of their intent to collect the debtor’s wages.
The debtor must receive a wage deduction notice. This document explains the legal amount of funds that can be taken from his/her wages. It states that the debtor has the legal right to dispute the amount the creditor is trying to take.
A debtor’s employer must also be presented with a legal wage deduction notice. This also states the amount that can be deducted and explains that they have the right to dispute the amount being requested, along with their employee.
How are Amounts Calculated?
There is a formula in place that calculates how much can be taken from an individual’s wages. According to Illinois law, debtors can have either 15 percent of their wages taken, or 45 times the state or federal minimum wage.
Additional wages, retirement plans, and employee benefits are exempt. There are instances where a debtor’s earnings are too low to have any deductions from his or her paycheck.
How to Get a Wage Deduction?
An affidavit must first be filed with the debtor and then employer interrogatories have to be issued. Once that is done, an employer is required to start holding the non-exempt wages earned by the debtor.
However, this is a temporary hold. The court determines if the creditor should receive the deduction. If the wage deduction is approved, the employer will be required to hold the set amount until the employee pays the debtor leaves the employer.
When a debtor does not earn enough wages to have funds deducted, a court order can be set in place to ensure withholdings start once the debtor earnings increase.
The Rights of the Debtor
When a debtor feels that he or she is having too much money deducted from their paycheck, they can file for a hearing to have the amount reviewed. In addition, an employer is not allowed to fire an individual because of a wage deduction. Although, when more than one creditor is seeking compensation, the same laws no longer protect the debtor.
Prevent wage deduction altogether by acquiring the legal counsel of an experienced consumer debt attorney. Heather Benveniste with Benveniste Law Offices spent seven years as a debt collection attorney and can use her insight on how the opposition pursues civil cases to your benefit. Contact us today for a free case evaluation.
About the author
Related posts
