Quick answer
Virginia has no program that pays off personal debt. Your options are a debt management plan with an SCC-licensed agency (fees capped at a $75 setup fee and $60 a month), settlement through a separately licensed firm, bankruptcy, or defending a lawsuit with free help through 866-LEGLAID (866-534-5243). Creditors generally have five years to sue on a signed contract and three years on medical debt. Since July 1, 2026, medical creditors cannot foreclose on your home, and interest on most medical bills is capped at 3% a year. Report problem collectors to the Attorney General's Consumer Protection hotline at 804-786-2042. Asking for help is free.
Key facts
- No state payoff program: relief comes from licensed plans, legal aid, bankruptcy, and Virginia law.
- Two licenses: debt management agencies (Va. Code chapter 20 of Title 6.2) and debt settlement firms (chapter 20.1) both answer to the SCC.
- Wages: at least 75% of weekly disposable pay is protected, and never less than 40 times the higher of the federal or Virginia minimum wage ($510.80 a week in 2026).
- Home: up to $50,000 for your principal residence plus a $5,000 wildcard ($10,000 at age 65 or older).
- Medical debt: off credit reports under a 2024 law, and new collection limits since July 1, 2026.
Table of contents
- The shape of Virginia debt relief programs
- SCC licensing and fee caps
- Comparing your main options
- The Medical Debt Protection Act
- Five years, three years, and medical bills
- How much pay a creditor can take
- Virginia's homestead exemption
- What to do if you are sued in general district court
- Free help and where to complain
- Related guides
- Frequently asked questions
The shape of Virginia debt relief programs
People looking up Virginia debt relief programs often expect a state fund or grant. Virginia does not have one for personal debt. What it does have is a set of rules that decide who can sell you debt help, how much they can charge, and what a creditor can do if you fall behind.
Those rules matter more in Virginia than in some neighboring states. Virginia's property exemptions are modest, so a creditor with a court judgment can reach more of your savings here than in Washington or Massachusetts. That makes the early steps, like a counseling call or a talk with legal aid before a lawsuit is filed, especially valuable.
Start with a list: each creditor, the current balance, who is collecting now, and your last payment date. Note whether any account is medical, because medical bills now follow different rules. Bring that list to any counselor or lawyer you talk to.
SCC licensing and fee caps
The State Corporation Commission's Bureau of Financial Institutions licenses two kinds of debt help companies. Both rules apply to firms that serve Virginians from out of state, too.
Debt management plan agencies
Under Va. Code 6.2-2001, anyone offering a debt management plan to a Virginia consumer must hold an SCC license unless it is a bank, credit union, or Virginia lawyer. Va. Code 6.2-2015 sets the fee limits:
| Fee | Most a licensee may charge |
|---|---|
| Set-up fee | $75 |
| Monthly maintenance fee | 15% of the amount paid out to creditors that month, but no more than $60 |
Many nonprofit agencies charge less than the cap, and some will lower or waive fees if money is tight. Ask.
Debt settlement companies
Since 2020, debt settlement firms have needed their own SCC license under chapter 20.1 of Title 6.2, along with a surety bond of $25,000 to $350,000 set by the Commission. A settlement firm cannot hold your money for creditors unless it also holds a debt management license. Federal rules add one more protection: a settlement company may not collect a fee before it settles at least one of your debts.
Before you sign, ask for the company's SCC license and check it with the Bureau of Financial Institutions. The Commission can suspend or revoke a license for failing to honor written agreements with consumers.
Comparing your main options
| Option | Works best when | Main tradeoff |
|---|---|---|
| Debt management plan | You can pay the full balance with lower interest | Usually closes the cards in the plan; takes three to five years |
| Calling creditors yourself | Only a few accounts are behind | Takes time; always get terms in writing |
| Debt settlement | You are far behind and have a lump sum building | Credit damage, fees, and possible lawsuits while you save |
| Bankruptcy | Debt is far beyond what you can repay | Virginia's smaller exemptions can put some savings at risk |
| Hospital financial assistance | Medical bills are the main problem | Requires an application with income proof |
Our debt settlement guide explains how settlement offers usually work and what they cost. The CFPB lists warning signs, such as a company that tells you to stop talking to your creditors.
The Medical Debt Protection Act
Virginia's Medical Debt Protection Act, Va. Code 59.1-611 and the sections after it, was signed in 2025 and took effect July 1, 2026. It builds on a 2024 law, Va. Code 59.1-444.4, that bars hospitals, licensed providers, ambulance services, and medical debt collectors from reporting medical debt to credit bureaus.
| Rule | What it means for you |
|---|---|
| Interest and late fees | Large health care facilities and medical debt buyers may not add any for 90 days after the final bill is due, and never more than 3% a year |
| Banned collection steps | No arrest, no body attachment, no foreclosure on your home, and no lien on your personal property for medical debt |
| Wage garnishment | Not allowed against anyone who qualifies under the provider's financial assistance policy |
| Waiting period and notice | No lawsuit, garnishment, or other serious collection step until 120 days after the final bill is due, with written notice at least 30 days ahead |
| Debt sales | A provider may sell medical debt only to a buyer that agrees to the same limits and returns the debt if you qualify for assistance |
The practical step is the same either way: ask every hospital for its financial assistance policy and apply. If you qualify, your wages are off limits for that bill. These rules cover debt owed for health care, not a hospital bill you already paid with an ordinary credit card. A 2025 federal interpretive rule questioned how far states may limit credit reporting, so the reporting ban could be tested in court. Our guide to government assistance for medical debt covers other ways to cut medical bills.
Five years, three years, and medical bills
Virginia's lawsuit deadlines for contracts are set by Va. Code 8.01-246:
- Five years for a written contract signed by you, such as many personal loans.
- Three years for an unwritten contract or one you did not sign. Some credit card cases fall here, depending on the paperwork.
- Three years for medical debt owed to a provider, counted from the due date of the final invoice, or from the date you broke a payment plan. This rule does not apply to services paid through Medicaid programs run by the Department of Medical Assistance Services.
Which deadline applies to a credit card can be a real question, so ask legal aid before assuming a debt is too old. Once the time has passed, a collector may still ask you to pay but cannot lawfully sue or threaten to sue.
How much pay a creditor can take
Under Va. Code 34-29, a garnishment for an ordinary debt can take the smaller of two amounts: 25% of weekly disposable pay, or the part of weekly pay above 40 times the higher of the federal or Virginia minimum wage. Virginia's minimum wage is $12.77 for 2026, so the protected floor is $510.80 a week.
| Weekly disposable pay | 25% of pay | Amount above $510.80 | Most that can be garnished |
|---|---|---|---|
| $500 | $125.00 | $0 | $0 |
| $600 | $150.00 | $89.20 | $89.20 |
| $800 | $200.00 | $289.20 | $200.00 |
Child support and tax debts follow different, higher limits. The floor rises whenever Virginia's minimum wage goes up, so check the current rate each January. Your employer also may not fire you over a single garnishment.
Virginia's homestead exemption
Virginia's version of a homestead exemption, in Va. Code 34-4, has three parts:
- A wildcard of $5,000 in any property you choose, including cash in the bank, or $10,000 if you are 65 or older.
- Up to $50,000 in property used as your or your dependents' principal residence, on top of the wildcard.
- $500 for each dependent you support.
Starting April 1, 2027, these amounts will be adjusted for inflation every three years. Other parts of Title 34 protect certain items such as household furnishings, a vehicle up to a set value, and tools of a trade. Because the cash protection is small, people facing a lawsuit should talk to legal aid early about how to protect the money they need for rent and food. Direct-deposited Social Security and SSI have separate federal protection: banks must leave two months of those benefits in the account.
What to do if you are sued in general district court
Almost every consumer debt case in Virginia starts in general district court. These courts hear claims up to $50,000, and small claims divisions hear cases up to $5,000. Debt buyers file thousands of these cases, and many end in default judgments because the person sued never comes to court.
- Find the return date. A warrant in debt lists a date to appear. Go, or file what the court requires before that date.
- Ask for a bill of particulars. You can ask the judge to make the creditor spell out its claim in writing, which often shows gaps in a debt buyer's records.
- Raise your defenses. These can include the wrong amount, no proof of ownership, the lawsuit deadline, or the new medical debt rules.
- Call legal aid before the date. Free help is available through 866-LEGLAID, and the Virginia Legal Aid debt collectors page explains the process.
If you owe the debt, being in court still gives you a chance to agree to a payment you can manage instead of a garnishment.
Free help and where to complain
| Need | Contact |
|---|---|
| Free civil legal aid anywhere in Virginia | Virginia Legal Aid, 866-534-5243 |
| Unfair collection or debt relief scams | Attorney General Consumer Protection Section, hotline 804-786-2042 |
| Checking a debt plan or settlement license | SCC Bureau of Financial Institutions |
| Medical debt and consumer law policy | Virginia Poverty Law Center |
| Pre-bankruptcy credit counseling | U.S. Trustee-approved agencies |
| Federal collector complaints | CFPB complaint portal |
Virginia has two federal bankruptcy courts, the Eastern District and the Western District, depending on where you live. If rent or utility bills are behind too, our Virginia hardship program guide explains rent, energy, and food help from local agencies.
You never have to pay to ask. Legal aid, the Attorney General's hotline, and hospital financial assistance applications are free. National Relief Program is an independent website and has no tie to the Commonwealth of Virginia.
Related guides
- Virginia government assistance
- Maryland debt relief programs
- North Carolina debt relief programs
- West Virginia debt relief programs
Frequently asked questions
Are there free Virginia debt relief programs?
Yes, in the form of free legal aid (866-534-5243), the Attorney General's consumer hotline, and hospital financial assistance. Debt management plans cost a little, but Virginia caps fees at $75 to set up and $60 a month. Virginia does not have a fund that pays off personal debt.
How long can a creditor sue me for a debt in Virginia?
Generally five years on a written contract you signed and three years on unwritten or unsigned contracts. Medical debt owed to a provider has a three-year limit from the final invoice due date.
Can a hospital garnish my wages in Virginia?
Not if you qualify under the hospital's financial assistance policy. Since July 1, 2026, Virginia also bars foreclosure, liens on personal property, and arrest over medical debt, and caps most medical debt interest at 3% a year.
How much of my paycheck can be garnished in Virginia?
No more than 25% of weekly disposable pay, and nothing from the first $510.80 a week in 2026, which is 40 times Virginia's $12.77 minimum wage. Support and tax orders have different limits.
How do I check if a debt relief company is licensed in Virginia?
Ask the company for its license and verify it with the State Corporation Commission's Bureau of Financial Institutions. Debt management agencies and debt settlement firms each need a Virginia license unless they are banks, credit unions, or Virginia lawyers.
Sources
These sources were reviewed on November 4, 2026. If one of them disagrees with this page, the source controls.
- Va. Code Title 59.1, chapter 59: Medical Debt Protection Act
- Va. Code 6.2-2015: Debt management plan fees
- Va. Code 8.01-246: Limitations on contract actions
- Va. Code 34-29: Garnishment limits
- Va. Code 34-4: Homestead exemption
- Virginia Legal Aid
- Virginia Legal Aid: Debt collectors
- Office of the Attorney General: Consumer Protection
- Virginia Poverty Law Center
- U.S. Trustee Program: Approved credit counseling agencies
- CFPB: Debt settlement and debt relief services
- CFPB: Submit a complaint
Also cited: Va. Code 6.2-2001 and chapter 20.1 of Title 6.2 (licensing), 59.1-444.4 (medical debt credit reporting), 16.1-77 and 16.1-122.2 (court limits), and the Virginia Department of Labor and Industry's 2026 minimum wage notice.
Nothing here is legal or financial advice. Virginia law and dollar amounts change, and the outcome of any case depends on its facts, so speak with legal aid or a Virginia lawyer about your own debts. National Relief Program is an independent website, not a government agency.
Before you apply: program rules, amounts, and deadlines change. Always confirm details with the official agency or program administrator. Applying for government benefits is free.
National Relief Program is an independent guide, not a government agency. Spotted an error? Email support@nationalreliefprogram.org.
