By Sareny Rodriguez
As of July 1, 2026, Virginia laws have changed in ways that benefit and protect consumer debtors. These changes include addition of exemptions from garnishment, protections for bank account balances, specific benefit payments, and new procedures for financial institutions. These changes were presented to, and passed, the Virginia legislature under House Bill 601 and the identical Senate Bill 301.
HB 601/SB301, codified in Virginia Code § 8.01-512.4 outlines the garnishment exemptions and the notice creditors must serve on debtors. This section specifically states that a creditor may not garnish certain federal and state benefit payments including:
- Federal agency or authority (Veterans’ benefits, Social Security benefits and Supplemental Security income, Federal civil service retirement benefits, and railroad retirement board benefits),
- Virginia agency benefit payments or ordered by a Virginia court (unemployment compensation benefits, public assistance, workers’ compensation and child support payments), and
- Minimum protected account balance.
These types of income are protected if deposited into the debtor’s account at least 2 months prior to the garnishment. One important point to note is that the exemptions listed above do not apply if the debt stems from child support or alimony/spousal support.
The creditor must serve a “Notice of Exemptions from Garnishment and Lien” on the debtor to inform them of their rights and protected funds. HB 601/SB301 further directs financial institutions that receive a garnishment summons to review all the debtor’s accounts at the institution and protect a maximum amount of $1,000 from garnishment. The debtor must have full and unabridged access to this $1,000.
Additionally, a debtor does not have to formally and proactively claim an exception, it will be automatically applied if applicable.
These changes are important to protect debtors from having all their funds garnished, leaving them unable to pay for basic needs.
Please contact Steven Krieger Law today for a consultation to discuss our creditor and debtor collection services.
