The Pew Charitable Trusts is testifying in support of HB 601. Data shows that 16,000 Virginians have their bank accounts garnished each year to satisfy unpaid debts. Statute allows consumers who have been garnished to request a small wildcard exemption, but doing so is complex, and many consumers don’t know the exemption exists. The result is that many Virginians have their bank accounts wiped down to $0, destabilizing them and making it impossible to afford their everyday needs. HB 601 would instead require banks to automatically leave behind $1,000, making paying off debts more manageable. The bill does not forgive debts and creditors would still be able to garnish wages and other assets as in current practice.
The Pew Charitable Trusts is testifying in support of HB 601. Data shows that 16,000 Virginians have their bank accounts garnished each year to satisfy unpaid debts. Statute allows consumers who have been garnished to request a small wildcard exemption, but doing so is complex, and many consumers don’t know the exemption exists. The result is that many Virginians have their bank accounts wiped down to $0, destabilizing them and making it impossible to afford their everyday needs. HB 601 would instead require banks to automatically leave behind $1,000, making paying off debts more manageable. The bill does not forgive debts and creditors would still be able to garnish wages and other assets as in current practice.