In Illinois, certain types of income are protected from wage garnishment to ensure individuals retain access to essential funds.
Exempt Income from Wage Garnishment in Illinois
Illinois law safeguards specific forms of income from being seized by creditors through wage garnishment. These exemptions are crucial for protecting vulnerable populations and ensuring basic financial stability. Understanding these protections can help individuals navigate their financial rights.
Here's a breakdown of the income types generally exempt from garnishment:
| Type of Income | Description |
|---|---|
| Social Security Disability | Benefits received due to a disability through the Social Security Administration. |
| ERISA Protected Retirement Accounts | Funds held within retirement accounts protected by the Employee Retirement Income Security Act (ERISA). Note: This exemption typically does not apply to money that has already been withdrawn from these accounts. |
| Dependent/Survivor Benefits | Payments received by dependents or survivors of a deceased individual. |
| SSI (Supplemental Security Income) | Needs-based benefits provided by the Social Security Administration for low-income individuals who are aged, blind, or disabled. |
| TANF (Temporary Assistance for Needy Families) | State-administered benefits providing financial assistance and other support to low-income families with children. |
| General Assistance | State or local programs offering financial aid to individuals who do not qualify for other major assistance programs. |
| SNAP (Food Stamps) | Benefits provided through the Supplemental Nutrition Assistance Program, designed to help low-income individuals and families purchase food. |
Importance of Exemptions
These exemptions are vital as they ensure that critical benefits intended for basic living expenses, retirement, and support for vulnerable individuals and families remain protected. Without these safeguards, individuals could be left without the means to cover essential needs or secure their future.
It's important for individuals facing potential wage garnishment to be aware of these protections and seek legal advice if they believe exempt funds are at risk.
