Bill > HB444

This bill establishes the Uniform Consumer Debt Default Judgments Act, which sets new requirements for obtaining a default judgment in lawsuits seeking to collect consumer debts, defined as money owed for personal, family, or household purposes. To prevent a default judgment, the initial legal document, called a "warrant in debt" or civil claim, must include specific details about the debt, such as the original creditor, the amount owed, and the date of default or charge-off (when a creditor removes a debt as an asset from its records). Crucially, the lawsuit must also be accompanied by a separate notice to the consumer, written in plain language, warning them that a default judgment may be entered if they don't respond to the lawsuit or appear in court. This notice must explain the serious consequences of a default judgment, including the potential for property seizure, wage garnishment, and negative impacts on credit, employment, and housing, and must also provide contact information for legal aid services. The bill also mandates that the Office of the Executive Secretary create a standardized form for this consumer notice, and its provisions will take effect on July 1, 2027.

Justice

https://lis.virginia.gov/bill-details/20261/HB444