Imagine the scenario: You owe a large sum of money and the debt collectors are after you. They make an arrangement with your bank to take everything you've got.
Delegate Phil Hernandez is a Democrat from Norfolk who introduced legislation to protect people who are having a hard time making ends meet.
"Under current law, when a garnishment hits your bank account you can be taken to zero overnight. Every last dollar in your account can be just gone in an instant," Hernandez said. "And you think about the financial spiral that causes for people, especially if you are living paycheck to paycheck. How do you put gas in your car, get medication or take care of your kids?"
But how much money should banks be required to leave in your account? Consumer protection advocates wanted to make sure there was at least $5,000. Some of the creditors said $500 should work. They eventually landed on $1,000.
Senator Schuyler VanValkenburg, a Democrat from Henrico County, is working with Hernandez on the effort.
"I think there was fighting both ways. The creditors said it was too high. There were other people who wanted it to be higher," VanValkenburg acknowledged. "I think Delegate Hernandez and I feel comfortable that it's in a good place. Maybe it's not perfect, but it's in a place where we were able to get everyone on board. We know it's a substantial protection. It's a bigger protection than most states. And so, I think it's in a good place."
The House and the Senate have each passed a version of the bill. So, it will likely be on its way to the governor's desk soon.
