Virginia Laws and Legal Materials

OVLG helps you understand Virginia's debt laws. We explain things simply so you know your options when dealing with debt. Our goal is to make complicated money problems easier to understand.

Virginia has different ways to help you with debt. Here are the main options:

Debt Settlement - This means asking the people you owe to take less money than you actually owe. It works best if you've missed some payments already. If you've been paying on time they might not agree unless you have a good reason.
Debt Consolidation - This is like getting one big loan to pay off many smaller debts. You usually have to promise something valuable like your house to get this loan. But it often means you pay less in interest overall.
Bankruptcy - This is a legal way to deal with debts you can't pay. It gives you a fresh start with money. In Virginia, you can file for bankruptcy in two main ways: Chapter 7 and Chapter 13.

Each of these ways to handle debt works differently. It's important to think about what's best for you.

We want you to know your choices. If you're having trouble with debt you have the power to do something about it. It's okay to ask for help and look for the best solution for you.

OVLG is always here to provide clear, helpful information about dealing with debt in Virginia. We believe that when you understand your options, you're better able to fix your money problems.

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Virginia's Rules for Collecting Debts

Sometimes when you owe money people might ask special companies to collect it from you. These companies are called collection agencies. Some work for the people you owe money to like credit card companies. Others are separate businesses. Some even buy debts from others.

Dealing with these companies can be hard. That's why there's a law called FDCPA to protect you.

What Debt Collectors Can't Do in Virginia

The FDCPA says debt collectors can't:

Talk to people who aren't involved with your debt like your family neighbors or boss
Threaten to hurt your credit score
Say they'll get a lawyer if they're not really going to
Take money from your paycheck or your stuff without legal permission
Lie about taking money from your bank account
Tell your boss why they're calling unless the boss asks
Use mean words or send fake letters that look like they're from a court

Remember debt collectors can still contact people who signed up for the debt with you.

These rules are there to keep debt collectors from being unfair or tricking you. If a debt collector breaks these rules you have the right to complain.

OVLG is here to help you understand these rules. Knowing your rights can help you better deal with debt collectors.

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Time Limits on Old Debts in Virginia

In Virginia, there are rules about how long someone can try to collect an old debt. This is called the statute of limitations or SOL. Here's what you need to know:

After 7 years most debts become "time-barred"
This means they can't sue you or put it on your credit report anymore
For written agreements, the time limit is usually 5 years
For spoken agreements, it's usually 3 years

Be careful! If a debt collector offers to let you pay less than you owe agreeing might restart the clock on an old debt. It could show up on your credit report again.

If you don't want to deal with a debt collector you can send them a letter saying "do not contact me." This should make them stop calling or writing to you.

Checking if a Debt is Really Yours

It's important to make sure a debt is really yours especially if you're trying to fix your credit. You can do this by:

Sending a "debt validation letter" to the collection agency
Asking them to prove the debt is yours and how much you owe
If they can't prove it they should take it off your credit report

Knowing these rules can help you handle old debts and protect your rights in Virginia.

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Taking Money from Your Paycheck in Virginia

Sometimes if you owe money people might try to take it directly from your paycheck. This is called wage garnishment. But Virginia has rules to protect you:

They can only take a smaller amount of these two options:

25% of your take-home pay
The money you make above 40 times the minimum wage

"Take-home pay" means the money you get after taxes and other required payments are taken out.

Here's an example to make it easier to understand:

Let's say you earn $1000 after taxes each week. The minimum wage is $10 per hour.

25% of $1000 is $250
40 times $10 is $400
$1000 minus $400 is $600

In this case, they could only take $250 from your paycheck because it's less than $600.

These rules help make sure you still have enough money to live on even if you owe debts. If someone is trying to take more than this from your paycheck you have the right to challenge it.

Bankruptcy in Virginia

If you're really struggling with debts you might think about bankruptcy. Here's what you need to know:

When you file for bankruptcy in Virginia, the court tells the people you owe to stop asking for money, which gives you a break.

Chapter 7 Bankruptcy

This type of bankruptcy works like this:

You give up some things you don't absolutely need
Someone sells these things
The money goes to people you owe
Most of your leftover debts go away

This is good for things like credit card debt or medical bills. But it doesn't help with house payments.

How to File for Chapter 7 Bankruptcy:

Take a test to see if you qualify based on your income
Get a list of all your debts (less than 60 days old)
Collect info about your money:
- Recent pay stubs
- Bank statements
- Tax papers from the last 2 years

Chapter 7 bankruptcy can be tricky. There are rules about what you can keep. It's smart to talk to a lawyer who knows about bankruptcy before you decide.

Additional Consumer Law Resources in Virginia

Living Trust Laws in Virginia

Virginia lets you set up a special plan called a living trust. Here's what you need to know:

You can put almost anything in this plan
- Houses
- Cars
- Bank accounts
- Other valuable stuff
This plan helps your family avoid a long legal process when you die
You can change this plan anytime you want
- This stops people from doing things you don't like with your stuff
It's good for:
- Managing your things while you're alive
- Taking care of kids or family members who need extra help
Before you make this plan:
- Talk to a lawyer who knows about these things
- Ask about how much it costs to keep the plan going
- Find out how it might change your taxes

Remember, these plans can be complicated. Understanding whether a living trust is a good idea for you in Virginia can help.

Resources for Business Formation:

Making Your Own Will in Virginia

Virginia lets you write your own will. Here's what you need to know:

You can write it by hand or type it
If you type it:
- Two people must watch you sign it
- These people also need to sign it
- It's best to get it notarized too
If you write it by hand:
- You don't need witnesses or a notary
The Virginia State Bar says:
- It's good to have a lawyer watch you sign
- The lawyer can then notarize it
If you don't use a lawyer:
- A witness might have to go to court after you die
- This is to prove the will is real
After you die:
- The person in charge of your stuff (called an executor) must:
  1. Take your will to the Circuit Court
  2. Bring your death certificate
  3. Make a list of everything you owned

Conclusion

This guide covers important things you need to know about money and legal matters in Virginia. We've talked about how to handle debts ways to protect yourself from unfair debt collectors and options like bankruptcy if you're in really tough money trouble. We also explained how you can plan for the future by making a will or setting up a special trust for your stuff. Remember it's okay to ask for more information about these topics.

While OVLG is here to help you understand these rules it's smart to talk to local lawyers or experts who know Virginia's laws really well especially for your specific situation. Knowing your rights and the help that's available can make a big difference. It helps you make good choices and stand up for yourself when dealing with money matters in Virginia. Don't be afraid to use this information to protect yourself and your finances.

Updated on: June 25, 2024