(312) 818-6700

Can debt collectors garnish your wages or federal benefits?

Posted by CTM Legal Group | Jul 06, 2016 | 0 Comments

You work hard for your paycheck, so the threat of having some of your pay taken from you – even before you see it – can be extremely troubling. For seniors and others on a fixed or limited income, the fear of losing what little they have can be even more distressing. When you owe money, a debt collection agency may threaten to garnish your wages or benefits in the attempt to force you into a quick decision.

Some states do allow wage garnishment to pay off debts. However, a debt collection agency cannot issue this kind of threat unless it or its client has begun the legal process to collect your debt in this fashion. In other words, until wage garnishment has been legally ordered, your paychecks cannot be garnished, and it is illegal for a debt collector to threaten that they will do this.

As for other forms of income, federal benefits such as Social Security, veterans' benefits, Supplemental Security Income, and so on are protected from debt collection in most cases. However, if you owe money to the government or if you owe child support, the money deposited into your bank account from federal benefits may be seized.

In these cases, your bank must protect at least two months' worth of benefits. For example, if you receive $500 per month in benefits, then your bank must allow you access to at least $1,000 from your account. Any amount beyond that may be used to pay off creditors if it has been legally ordered.

Don't take chances with your paychecks and your savings. If a debt collector is pressuring you with threats of wage or benefit garnishment in Illinois, speak with CTM Legal Group immediately. We can help stop illegal threats from debt collectors.

About the Author


There are no comments for this post. Be the first and Add your Comment below.

Leave a Comment

The CTM Legal Group Is Here for You

At the CTM Legal Group, we focus on Commercial Litigation, Consumer Law, Corporate Law, Criminal Matters, Debt Defense & Bankruptcy, Family Law, Immigration, Labor & Employment, Municipal Law, Probate, Real Estate, Tenant’s Rights, Wills & Trusts, and Workers’ Compensation / Personal Injury and we are here to listen to you and help you navigate the legal system.

Contact Us Today

The CTM Legal Group is committed to answering your questions about law issues in Chicago, Illinois. We offer consultations and we'll gladly discuss your case with you at your convenience. Contact us today to schedule an appointment.