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Bill

HB 445

Debtor's disposable earnings; exemptions form garnishment, exemptions in bankruptcy proceedings.

2026 Regular Session Introduced by Marcus Simon

Virginia bill strengthens wage garnishment protections and bankruptcy exemptions for debtors, limiting creditors' ability to seize workers' disposable earnings.

Referred to Committee for Courts of Justice
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WeVote Research Nonpartisan
Bill Summary · HB 445

Legislative bill overview

HB 445 modifies Virginia law regarding wage garnishment protections for debtors by adjusting exemptions from garnishment and establishing new protections in bankruptcy proceedings. The bill appears to strengthen protections for a debtor's disposable earnings—the income remaining after mandatory deductions—making it harder for creditors to seize wages through court-ordered garnishment.

Why is this important

Wage garnishment directly affects workers' ability to pay living expenses and maintain financial stability. Changes to garnishment exemptions determine how much of a person's paycheck creditors can claim, which has immediate consequences for household budgets, particularly for lower-income workers who live paycheck-to-paycheck. These protections also interact with federal bankruptcy law, so state-level changes can significantly alter the financial landscape for Virginians facing debt.

Potential points of contention

  • Balance between creditor and debtor rights: Expanding garnishment exemptions protects workers but may concern creditors and lenders who argue stricter limits reduce their ability to recover legitimate debts
  • Economic impact on lending: Financial institutions may argue that stronger debtor protections increase lending costs or reduce credit availability to lower-income Virginians
  • Definition of "disposable earnings": Disputes may arise over what counts as disposable income and whether certain deductions should be mandatory versus voluntary, affecting the practical scope of protections

Compiled from official sources — confirm details with the bill’s official record.

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