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VA HB601

VA HB601
Exemptions from garnishment; minimum protected account balance, certain benefit payments.

summary

Introduced
01/13/2026
In Committee
02/18/2026
Crossed Over
02/09/2026
Passed
02/25/2026
Dead

Introduced Session

Potential new amendment
2026 Regular Regular Session

Bill Summary

Exemptions from garnishment; minimum protected account balance; certain benefit payments; procedure for financial institutions. Requires certain financial institutions to automatically exempt from garnishment (i) a minimum protected account balance, defined in the bill as the combined total of not more than $1,000 in a judgment debtor's account or across multiple accounts in the same financial institution, and (ii) a protected amount of certain benefit payments, defined in the bill, that have been deposited into the account via direct deposit or electronic deposit within the two months immediately preceding the day before a financial institution commences an account review. The bill describes an account review as a process of examining an account of a judgment conducted by a financial institution upon such financial institution's receipt of a garnishment summons to determine if any eligible benefit payments have been deposited within the applicable time period and, if so, to calculate the total sum of such benefit payments and establish the total as a protected amount that shall be automatically exempt from garnishment. The bill provides that such procedure to automatically exempt such funds shall not apply if the debt arises from a child support or spousal support obligation or if an exemption is otherwise prohibited by law.The bill further provides that a judgment debtor is not required to claim nor request a hearing for such automatic exemptions. Finally, the bill makes updates to the relevant provisions governing garnishment proceedings, notices to the garnishee and judgment debtor, and the form of a garnishment summons consistent with the provisions of the bill. This bill is identical to SB 301.

AI Summary

This bill requires certain financial institutions to automatically protect a minimum of $1,000 in a judgment debtor's account from garnishment, which is the process of legally seizing funds to satisfy a debt. It also mandates that financial institutions automatically exempt a protected amount of certain benefit payments, such as Social Security, unemployment, or workers' compensation, if they have been deposited into the account via direct or electronic deposit within the two months prior to the financial institution reviewing the account. An "account review" is defined as the process a financial institution undertakes upon receiving a garnishment summons to check for these benefit payments and calculate the protected amount. This automatic exemption procedure will not apply if the debt is for child or spousal support or if the law otherwise prohibits it, and judgment debtors do not need to request these automatic exemptions or a hearing for them. The bill also updates procedures related to garnishment proceedings, including notices to those involved and the form of the garnishment summons, to align with these new exemption provisions.

Committee Categories

Justice

Sponsors (11)

Last Action

Signed by President (on 02/25/2026)

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