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We received a garnishment order for one of our business customers. Does the COVID-19-related moratorium on garnishment proceedings in Illinois apply only to consumers and not to businesses? – IBA Compliance Connection

IBA Compliance Connection

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We received a garnishment order for one of our business customers. Does the COVID-19-related moratorium on garnishment proceedings in Illinois apply only to consumers and not to businesses?

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Yes, the current prohibition against the service of garnishment summonses in Illinois applies only to consumer debtors and consumer garnishees. Under Executive Order 2020-25, as amended and extended by Executive Order 2020-55, the service of a garnishment summons, wage deduction summons, or a citation to discover assets on a consumer debtor or consumer garnishee is prohibited until October 17, 2020. The Executive Orders do not mention business debtors or garnishees.

For resources related to our guidance, please see:

  • Illinois Executive Order 2020-55 (September 18, 2020) (“Executive Order 2020-25, as amended and revised below, is re-issued in its entirety and extended through October 17, 2020. . . . During the duration of the Gubernatorial Disaster Proclamations . . . the service of a garnishment summons, wage deduction summons, or a citation to discover assets on a consumer debtor or consumer garnishee, [is] suspended.”)