Virginia Law Adjusts Exemptions for Debtors, Financial Institutions to Protect Minimum Account Balances from Garnishment
Virginia law has been updated to provide greater protection for debtors' funds from garnishment. Effective April 1, 2027, financial institutions in Virginia will be required to exempt a minimum protected account balance of up to $1,000 from garnishment. This exemption applies to all accounts held by a judgment debtor at a financial institution. The law mandates that financial institutions provide account holders with full and customary access to this protected amount, ensuring no portion is withheld due to garnishment. Furthermore, the monetary limit of this exemption will be adjusted every three years based on changes in the Consumer Price Index for all urban consumers (CPI-U), as published by the U.S. Department of Labor's Bureau of Labor Statistics. These adjustments will be rounded to the nearest $25 and will not apply to bankruptcy cases initiated before April 1, 2027. The law also specifies that if a judgment debtor has multiple accounts, a separate account review will be conducted for each, and a di... 
