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Bill

HB 601

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

2026 Regular Session

HB 601 protects minimum bank account balances and certain benefit payments from wage garnishment to prevent debtors from losing essential living funds to creditors.

Reported from Courts of Justice with amendment(s) (21-Y 1-N)
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WeVote Research Nonpartisan
Bill Summary · HB 601

Legislative bill overview

HB 601 modifies Virginia's wage garnishment laws by establishing exemptions that protect a minimum balance in bank accounts and certain benefit payments from creditor seizure. The bill creates safeguards for financially vulnerable individuals by shielding essential funds from garnishment proceedings.

Why is this important

Wage garnishment can devastate household finances by removing money needed for basic living expenses. This bill addresses the practical problem that current garnishment law may leave debtors unable to pay rent, utilities, or buy food, while also potentially reducing the likelihood that people will be forced into informal economy practices to avoid garnishment.

Potential points of contention

  • Defining "protected balance": Determining what minimum account balance is reasonable will affect creditors' ability to recover debts and may incentivize debtors to structure accounts strategically
  • Benefit identification challenges: Banks and courts may struggle to distinguish which deposits are protected benefits (Social Security, unemployment, etc.) versus regular income, creating administrative burden
  • Creditor impact: Lenders and debt collection industries may argue these exemptions reduce their ability to recover legitimate debts and could increase lending costs for all consumers

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

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