Virginia law allows creditors to take legal action to recover unpaid debts -- if your debt account becomes severely delinquent, usually six months or more, your creditor may take steps to garnish a portion of your paycheck. This means that your employer will withhold part of your earnings to apply toward your debt. However, a creditor cannot take your entire paycheck -- Virginia places restrictions on amounts a creditor can legally garnish.
Garnishment Limitation
Virginia adheres to federal law regarding the percentage of your wages that a private creditor can legally garnish. A creditor can take up to 25 percent of your disposable earnings, which is the portion of your wages after required taxes are deducted. Retirement plan payments, health insurance premiums and other voluntary deductions do not reduce your wages for the purpose of determining disposable income.
Alternative Limitation
Virginia imposes additional restrictions on wage garnishment. If you earn less than 30 times the federal minimum hourly wage each week, your creditor cannot garnish your income. For example, if the federal minimum wage is $7.25 per hour, you can earn up to $217.50 per week without fear of garnishment from a private creditor. If you earn more than this amount, the creditor may garnish the lesser of 25 percent of your wages or the amount you earn above 30 times the federal minimum wage each week.
Exceptions
The standard garnishment limitations in Virginia do not apply to federal or state tax debts, child support or alimony. If you owe unpaid alimony, child support or taxes, the creditor garnish up to 50 percent of your disposable income if you currently support a spouse or dependent who is not the intended beneficiary of the unpaid child support or alimony. If you do not currently support a spouse or dependent, the creditor can take up to 60 percent of your disposable earnings.
Garnishment Authorization
Under Virginia and federal law, a private creditor cannot execute wage garnishment without obtaining a valid judgment against you for your debt. The creditor must file a lawsuit against you for the debt and receive a judgment from a Virginia court, typically in the county where you reside. However, garnishments for tax debts, child support and alimony can be executed without a court judgment.
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