VirginiaSB3012026 Regular SessionSenateWALLET

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

Sponsored By: Schuyler T. VanValkenburg (Democratic)

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 HB 601.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

Clearer garnishment papers and exemption notice

The law tightens wage‑garnishment summons rules: one debtor, one garnishee, the “TOTAL BALANCE DUE,” the debtor’s Social Security number, and whether it targets wages or other property. If papers are wrong, the garnishee can file an answer, the summons is void, and the garnishee has no liability. If a non‑wage summons lacks enough info to identify the debtor, the garnishee is not liable; if info is sufficient, it must answer the court, send a copy to the debtor, and banks must check for automatic exemptions before responding. Every garnishment summons or lien notice must include a notice of exemptions and a claim form that list common protected benefits and explain how to claim them.

Protected bank balance and benefit deposits

The law keeps up to $1,000 across your bank accounts safe when a garnishment arrives. Starting April 1, 2027, this amount updates every three years for inflation (rounded to $25). If your balance is higher, the bank must review the last two months and automatically protect the total of any clearly tagged federal or Virginia benefit deposits, like Social Security, SSI, VA, unemployment, workers’ comp, or child support. These protections are automatic, you keep normal access to the money, and the bank reviews each account separately and sends you a notice. Money above the protected amounts can be taken, and no review happens if another law forbids these exemptions or the deposits cannot be identified from the payer’s information.

Sponsors & Cosponsors

Sponsor

  • Schuyler T. VanValkenburg

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 183 • No: 44

House vote 2/23/2026

Passed House

Yes: 81 • No: 15

House vote 2/18/2026

Reported from Courts of Justice

Yes: 18 • No: 4

Senate vote 2/12/2026

Read third time and passed Senate

Yes: 21 • No: 19

Senate vote 2/11/2026

Courts of Justice Amendments agreed to

Yes: 0 • No: 0

Senate vote 2/10/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote 2/10/2026

Constitutional reading dispensed Block Vote (on 1st reading)

Yes: 40 • No: 0

Senate vote 2/9/2026

Reported from Courts of Justice with amendments

Yes: 8 • No: 6

Senate vote 1/26/2026

Rereferred from Commerce and Labor to Courts of Justice

Yes: 15 • No: 0

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0638)

    4/13/2026Governor
  2. Approved by Governor-Chapter 638 (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

    3/10/2026Senate
  5. Bill text as passed Senate and House (SB301ER)

    2/24/2026Senate
  6. Enrolled

    2/24/2026Senate
  7. Signed by President

    2/24/2026Senate
  8. Signed by Speaker

    2/24/2026House
  9. Passed House (81-Y 15-N 0-A)

    2/23/2026House
  10. Read third time

    2/23/2026House
  11. Read second time

    2/20/2026House
  12. Reported from Courts of Justice (18-Y 4-N)

    2/18/2026House
  13. Read first time

    2/17/2026House
  14. Referred to Committee for Courts of Justice

    2/17/2026House
  15. Placed on Calendar

    2/17/2026House
  16. Read third time and passed Senate (21-Y 19-N 0-A)

    2/12/2026Senate
  17. Courts of Justice Amendments agreed to

    2/11/2026Senate
  18. Engrossed by Senate as amended (Voice Vote)

    2/11/2026Senate
  19. Read second time

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

    2/10/2026Senate
  21. Constitutional reading dispensed Block Vote (on 1st reading) (40-Y 0-N 0-A)

    2/10/2026Senate
  22. Rules suspended

    2/10/2026Senate
  23. Senate committee offered

    2/9/2026Senate
  24. Reported from Courts of Justice with amendments (8-Y 6-N)

    2/9/2026Senate
  25. Rereferred from Commerce and Labor to Courts of Justice (15-Y 0-N)

    1/26/2026Senate

Bill Text

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