An assignment of wages is the transfer of the right to collect wages from the wage earner to a creditor. The assignment of wages is usually effectuated by deducting from an employee's earnings the amount necessary to pay off a debt.
An assignment of wages should be contained in a separate written instrument, signed by the person who has earned or will earn the wages or salary. The assignment should include statements identifying the transaction to which the assignment relates, the personal status of the assignor, and a recital, where appropriate, that no other assignment or order exists in connection with the same transaction.
Many jurisdictions have enacted statutory provisions concerning wage assignments that prescribe various requisites of or conditions to the validity of assignments of wages. Compliance with these statutes is essential to make such assignments effective.
Illinois Assignment of Wages Due or to Become Due is a legal process that allows an individual or entity to assign their future wages to another party as collateral for a debt or loan. This assignment gives the creditor the right to receive a portion of the debtor's wages directly from their employer until the debt is satisfied. The Illinois Assignment of Wages Due or to Become Due is governed by the Illinois Wage Assignment Act, which outlines the specific requirements and procedures for executing and enforcing such assignments. This act ensures that certain protections are in place for both the debtor and the creditor. Under this act, there are two types of Illinois Assignment of Wages Due or to Become Due: 1. Voluntary Assignment: This type of assignment is entered into by the debtor willingly and voluntarily to secure a debt or loan. It requires a written agreement between the debtor and the creditor, clearly stating the terms and conditions of the assignment. The agreement must be signed by both parties and should specify the amount of wages to be assigned and the duration of the assignment. 2. Involuntary Assignment: This type of assignment occurs when a court orders the assignment of wages to satisfy a judgment or other legal obligation. Involuntary assignments usually result from the debtor's failure to repay their debt, and the court issues an order allowing the creditor to collect a portion of the debtor's wages directly from their employer. It is important to note that Illinois law provides certain protections for debtors when it comes to wage assignments. For voluntary assignments, the law restricts the maximum amount that can be assigned to 15% of the debtor's gross wages. Also, written notice must be sent to the debtor's employer within a specific timeframe, informing them of the assignment and providing necessary details. Furthermore, the Illinois Wage Assignment Act prohibits employers from discriminating against employees with wage assignments. Employers are not allowed to terminate or otherwise penalize an employee solely based on the assignment of their wages. In summary, Illinois Assignment of Wages Due or to Become Due is a legal process that enables creditors to directly collect a portion of a debtor's wages from their employer. It can be voluntary or involuntary, with each type having its own requirements and protections. Understanding the specific provisions outlined by the Illinois Wage Assignment Act is crucial for both debtors and creditors involved in wage assignments.
