VirginiaHB6012026 Regular SessionHouseWALLET

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

Sponsored By: Jen Kiggans - to resign 12/31 (Republican)

Became Law

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.

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 3 benefits, 1 costs, 1 mixed.

Protected cash and benefit deposits

The law protects up to $1,000 across your bank accounts from garnishment and keeps that money accessible. Starting April 1, 2027, that dollar limit is adjusted for inflation every three years and rounded to the nearest $25. If your total balances are above the minimum, the bank also protects the sum of covered benefit deposits from the last two months, such as Social Security, SSI, veterans’ benefits, and Virginia unemployment. After setting aside these protected amounts, only the remaining balance can be taken. These protections are automatic; you do not need to file a claim.

Banks must review accounts and notify you

When a bank gets a garnishment, it must check your accounts for automatic exemptions before it answers the court. The bank reviews each of your accounts separately and does only one review per account for each summons. If it sets aside a protected amount, it must send you a notice that follows 31 C.F.R. § 212.7. Any garnishment or lien served on a bank must also include a written exemptions notice and a claim form so you know your rights.

Clearer wage garnishment rules for paychecks

Wage garnishment papers must use a standard form for one worker and one employer. The form must clearly show the total balance due, the worker’s Social Security number in the right place, and whether it targets wages, salary, commission, or other earnings. Employers are not liable for items not listed and can challenge a bad form.

Limits on automatic garnishment protections

Banks protect only benefit deposits they can identify from the payer’s information. If another law bars exemptions, the bank does not do an account review and does not apply these protections.

Stronger ID and truth rules in garnishment

Creditors must give the debtor’s Social Security number to the clerk when they have it, but a garnishment can still issue if they tried in good faith and could not get it. Banks are not liable for failing to turn over property when the summons lacks enough information to identify the right person. Giving knowingly false information in the garnishment process is a Class 1 misdemeanor.

Sponsors & Cosponsors

Sponsor

  • Jen Kiggans - to resign 12/31

    Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 191 • No: 31

Senate vote 2/23/2026

Passed Senate

Yes: 20 • No: 18

Senate vote 2/20/2026

Constitutional reading dispensed Block Vote (on 2nd reading)

Yes: 40 • No: 0

Senate vote 2/20/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote 2/18/2026

Reported from Courts of Justice

Yes: 9 • No: 5

House vote 2/10/2026

Read third time and passed House

Yes: 92 • No: 6

House vote 2/4/2026

Reported from Courts of Justice with amendment(s)

Yes: 21 • No: 1

House vote 1/28/2026

Subcommittee recommends reporting with amendment(s)

Yes: 9 • No: 1

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0637)

    4/13/2026Governor
  2. Approved by Governor-Chapter 637 (effective 7/1/2026)

    4/13/2026Governor
  3. Governor's Action Deadline 11:59 p.m., April 13, 2026

    3/10/2026Governor
  4. Enrolled Bill communicated to Governor on March 10, 2026

    3/10/2026House
  5. Bill text as passed House and Senate (HB601ER)

    2/25/2026House
  6. Enrolled

    2/25/2026House
  7. Signed by President

    2/25/2026Senate
  8. Signed by Speaker

    2/25/2026House
  9. Passed Senate (20-Y 18-N 0-A)

    2/23/2026Senate
  10. Read third time

    2/23/2026Senate
  11. Passed by for the day Block Vote (Voice Vote)

    2/20/2026Senate
  12. Constitutional reading dispensed Block Vote (on 2nd reading) (40-Y 0-N 0-A)

    2/20/2026Senate
  13. Rules suspended

    2/20/2026Senate
  14. Reported from Courts of Justice (9-Y 5-N)

    2/18/2026Senate
  15. Referred to Committee for Courts of Justice

    2/11/2026Senate
  16. Constitutional reading dispensed (on 1st reading)

    2/11/2026Senate
  17. Read third time and passed House (92-Y 6-N 0-A)

    2/10/2026House
  18. Engrossed by House as amended

    2/9/2026House
  19. committee amendments agreed to

    2/9/2026House
  20. Read second time

    2/9/2026House
  21. Read first time

    2/6/2026House
  22. Reported from Courts of Justice with amendment(s) (21-Y 1-N)

    2/4/2026House
  23. House subcommittee offered

    1/28/2026House
  24. Subcommittee recommends reporting with amendment(s) (9-Y 1-N)

    1/28/2026House
  25. Assigned HCJ sub: Civil

    1/26/2026House

Bill Text

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