SB1248 Summary

• Reduces wage deduction limits from 15% to 10% of gross weekly wages and increases the income exemption threshold from 45 to 50 times the federal minimum wage (or applicable state/local minimum wage).

• Establishes a new automatic adjustment mechanism for personal property exemption amounts every two years based on the Consumer Price Index, with adjustments rounded to the nearest 10% increase.

• Adds $6,000 protection for funds held in bank accounts and certain financial instruments, which financial institutions must exempt from garnishment without court proceedings.

• Changes judgment interest rates to a maximum equal to the weekly average One-Year Constant Maturity Treasury Yield, with a 6% rate applied to governmental entity debtors.

• Eliminates wage assignment agreements by declaring that no assignment of wages earned or to be earned is valid, effectively repealing most provisions of the Illinois Wage Assignment Act.