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Vance questions authority of US judges to challenge Trump; UAW contract negotiations at VW focus on higher wages, health care, retirement; Report highlights how Georgia can unlock rural infrastructure, broadband; Leftover fish parts could help keep industrial fishing waste low.

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The head of the new White House Faith Office draws scrutiny, Trump moves to fire the Federal Elections Commission chair, and a North Carolina judge won't toss tens of thousands of ballots in a state Supreme Court race.

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Medical debt, which tops $90 billion has an outsized impact on rural communities, a new photography book shares the story of 5,000 schools built for Black students between 1912 and 1937, and anti-hunger advocates champion SNAP.

VA lawmakers aim to strengthen debt protections

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Monday, January 6, 2025   

As the Virginia General Assembly convenes, new legislation protecting working families from harsh debt collection practices is on the table.

With consumer debt at record levels and a recent report from the National Consumer Law Center giving Virginia a "D" rating for its debt exemption laws, advocates are calling for reforms to prevent more families from falling into poverty.

Jay Speer, executive director of the Virginia Poverty Law Center, explained Virginia's current laws leave many vulnerable to devastating financial consequences.

"It just creates a really difficult situation when there are a lot of people in this boat," Speer observed. "You have trouble paying one of your bills, and it goes to judgment. And then, if the laws don't protect your assets, then you just basically get into a downward spiral, and you can't get out of it."

Virginia's wage and bank account garnishment laws have long been criticized for pushing families deeper into poverty. While critics may argue such reforms could hinder creditors, one proposed bill from Del. Phil Hernandez, D-Norfolk, seeks to protect a minimum of $5,000 in family bank accounts from garnishment, ensuring families can cover essential costs like food, housing, and medical care. The General Assembly begins Wednesday.

Another bill by Del. Carrie Coyner, R-Hopewell, seeks to end Virginia's unique policy of 100% wage liens for tax debts, which Speer argued harms individuals, particularly those without legal help.

"They can actually garnish your entire paycheck or put a lien on your paycheck and take 100%, while other creditors can only take 25% or less in the case of when you're not paid very much," Speer explained. "The tax debt can take 100%. So you can only imagine if you suddenly find out you're not going to get any wages at all."

Speer also pointed to Virginia's homestead exemption, which allows homeowners to protect a portion of their property's value from creditors, as another area where the state falls short. While legislation passed in 2024 increased the exemption from $25,000 to $50,000, Speer contended it remains inadequate given today's real estate market.

Disclosure: The Virginia Poverty Law Center contributes to our fund for reporting on Civil Rights, Housing/Homelessness, Poverty Issues, and Social Justice. If you would like to help support news in the public interest, click here.


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