VirginiaHB6012026 Regular SessionHouseWALLET

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

Sponsored By: Phil M. Hernandez (Democratic)

Signed by Governor

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

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Benefit recipients keep protected bank deposits

Before answering a garnishment summons, a Virginia financial institution must check each account when it can reasonably identify the debtor. It automatically protects qualifying benefit deposits, including Social Security and veterans’ benefits, made during the two months before the day preceding review. Payment information from the payer must identify the benefit, and other laws must not prohibit the exemption. The institution must give notice and preserve full access without a claim or hearing; these protections add to the minimum protected balance. Each account gets a separate protected amount, and another review requires a new or different summons; money above the combined protections remains subject to garnishment unless another law protects it.

Debtors keep a protected bank balance

When a Virginia financial institution receives a garnishment summons naming you as the debtor, it must protect up to $1,000. This is one combined limit across your accounts at that institution, not $1,000 per account. You keep full access to this money without filing an exemption claim or attending a hearing. Beginning April 1, 2027, the limit changes every three years based on inflation over a three-year period. The adjustment uses the Consumer Price Index for All Urban Consumers and rounds the limit to the nearest $25.

Sponsors & Cosponsors

Sponsor

  • Phil M. Hernandez

    Democratic • House

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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