Virginia graded ‘D’ in ability to protect families from wage, asset seizures

RICHMOND, Va. (WRIC) -- Virginia has earned the grade of a "D" in a report from the National Consumer Law Center (NCLC) for failing to protect families from wage and asset seizures.

The NCLC announced in a December 2025 report that Virginia had failed to meet any of the five basic standards for consumer protection from wage and asset seizures, resulting in a "D" grade.

Lawmakers are now introducing legislation to strengthen Virginia's laws and better protect its residents.

The report graded each state on its exemption laws, which protect income and property from seizure by creditors, debt buyers and debt collectors, according to the report.

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“Affordability depends on two things: what families earn and what everything costs,” said Jay Speer, executive director of Virginia Poverty Law Center. “For too many low-wage workers, already-inadequate pay is further drained by predatory lending, inflated prices, and aggressive debt collection. When Virginia’s laws allow wages, bank accounts, and basic household goods to be seized, they make a bad situation worse—and push families closer to financial collapse.”

An annual survey conducted by NCLC on exemption laws across the U.S. looks at different standards, including:

• The prevention of creditors from seizing too much of the debtor's wages so that they begin to live below a living wage.
• The prevention of a basic amount of money in a bank account so that the debtor's ability to pay essential functions, such as rent, utilities and commuting expenses, is not depleted.

The report then creates an average grade for all U.S. states on their ability to protect their residents.

Virginia earned a "D" because its laws are not able to protect people's funds in bank accounts. Due to this, wages that are automatically deposited can become fully seized if the bank account is garnished. Virginia also falls behind in protecting household goods and wage protections when compared to nearby states.

Additionally, the report examined the wealth divide and found that a heavier debt burden fell on Black and Latino families. They are more subject to debt collection lawsuits, court judgement and wage seizures. An analysis of Virginia debt collection lawsuits data from 2019 to 2024 can be viewed on the Virginia Poverty Law Center's Debt Collection Lab.

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“By updating their exemption laws, Virginia lawmakers can prevent creditors and debt buyers from pushing families into poverty,” said co-author of the report, Michael Best. “These protections help families regain their financial footing and contribute to the economy, keeping workers in the workforce, reducing the demand on funds for unemployment compensation and social services, and keeping money in local communities.”

There are now different pieces of legislation pending for the General Assembly that would strengthen income and asset protection to assist Virginians with the help they need.

• Get rid of the practice that allows state and local governments to garnish all of a worker's paycheck.
• Protect a certain amount of funds in a worker's account from garnishment after they are deposited.
• Adopt a uniform legislation that creates guidelines for predatory debt collection practices, per the release.

“Virginia lawmakers have an opportunity this session to help ensure that working families can keep enough of their wages and basic assets to stay housed and employed in an increasingly unaffordable economy,” said Speer.