If your wages are being garnished, that means that your creditors have successfully secured an order from a judge in Illinois allowing them to take money directly from your paycheck. By filing for bankruptcy, you can secure a federal order to overrule it.

Voluntary wage assignments are typically part of any payday loan contract and are agreed to by the debtor when they take out the loan. Since these are not court ordered, they can be revoked. If you have a voluntary wage assignment, the attorneys at Billbusters can revoke it for you as soon as you retain us.

At Billbusters, Borges and Wu, LLC, our law firm is focused exclusively on bankruptcy and consumer rights representation in Chicago, Illinois. Our attorneys provide experienced, cost-effective and personalized service to create a strategy to fit your unique situation. For a free consultation, call 312-853-0200 or contact us online.

Bankruptcy Automatically Stops Wage Garnishment

Once you file for bankruptcy, it typically triggers an automatic federal court order called an “automatic stay” that prohibits your creditors from taking any collection actions against you or your property, including stopping a wage garnishment immediately upon filing.

You May Receive Reimbursement

The wage garnishment process runs on a simple timeline: The creditor files a motion to garnish wages, and approximately 20 days later the motion is made into an official court order. However, the debtor’s employer is required to start garnishing the employee’s wages at the time the motion is filed, not at the time of the order.

If you file bankruptcy after the motion is filed, but before the court order is issued, you may be able to be reimbursed for all of the wages that have been deducted from your check.

Not All Wage Deductions are Garnishments

The term “wage garnishment” only refers to money deducted from your paycheck pursuant to a court order to pay for old debts. This can include credit card debt, payday loans, back taxes, student loans and back child support. However, a wage deduction for some current obligations, like ongoing child support, cannot be removed through bankruptcy.

A Lawyer Can Help You Decide How to Proceed

It is never easy to decide whether to file for bankruptcy. You should consult with an experienced, knowledgeable attorney who will educate you about your rights and answer any questions you have about the bankruptcy process and the impact bankruptcy could have on your life.

If you would like to schedule a free initial consultation with an experienced bankruptcy attorney at Ledford, Wu & Borges, LLC, we welcome you to call 312-853-0200 or to contact us online today.

Billbuster, Borges and Wu, LLC has offices in Downtown Chicago, the South Side of Chicago, Homewood, North Riverside/Berwyn, the Northwest Side and the Southeast Side.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.