New Limits On Debt Collectors Will Soon Be A Reality In Virginia

Virginia is enacting several new laws that significantly limit how debt collectors can pursue consumers, especially around bank account garnishments and proof required in collection lawsuits.

Key new limits on collectors

• Collectors will no longer be able to drain a consumer’s bank account to a zero balance when enforcing a judgment; at least a baseline amount must remain protected.

• New rules increase what must be included in a collection lawsuit (e.g., more detailed information so consumers can identify the debt and verify it is theirs) before a default judgment can be entered.

• There will be clearer time limits on how long collectors can actively pursue certain debts in court, aligning practice with existing statutes of limitations and curbing very old “zombie” debt litigation.

Bank account protections

• One new Virginia measure (H.B. 601/S.B. 301) automatically protects at least 1,000 dollars in a consumer’s bank account from being seized in garnishment so people are not left with nothing for basic expenses.

• Lawmakers and advocates have framed this as ensuring “no one gets taken to zero,” i.e., judgment creditors and collectors cannot fully wipe out a consumer’s account balance.

Changes to court and documentation standards

• H.B. 444 requires businesses filing collection lawsuits to provide enough documentation for consumers and courts to identify the debt: creditor name, amount, account information, and other core data.

• These documentation standards aim to reduce default judgments based on thin or inaccurate information, a common problem with debt-buyer suits and legacy account portfolios.

Timing and effective dates

• The main new garnishment and documentation reforms (including H.B. 601, H.B. 1100 and related measures) are scheduled to take effect July 1, 2026 (or, for some pieces, July 1, 2027), giving courts and industry time to adjust procedures.

• They layer on top of existing FDCPA protections and prior Virginia reforms on medical debt reporting and collection (e.g., the Medical Debt Protection Act effective July 1, 2026 for medical accounts).

How this plays out in practice

For a typical judgment garnishment, a Virginia collector executing on a bank account will have to:

• Leave the statutory protected amount in the account (rather than cleaning it out entirely).

• Ensure the underlying case file contains the newly required identifying details about the debt to sustain a default judgment and any post-judgment remedies.