When the assignment is executed and approved by the court and the trustee has been appointed and notice given to the creditors listed in the assignment, such assignment shall be deemed legal and binding upon all creditors and such salary, wages, or income shall be exempt from garnishment, levy, or distress during such time as the assignment is in existence. Such assignment shall have priority over all liens subsequently obtained.
§ 8.01-525.10.Exemption from garnishment, levy, or distress.
Chapter 18.1. Assignments for Benefit of Creditors · Article 2. Assignment of Salary, Wages, or Income · Last amended 2019 · Last verified July 16, 2026
In one sentenceOnce the court approves the assignment, appoints a trustee, and the trustee notifies the listed creditors, the arrangement binds every creditor, shields the debtor’s salary from garnishment, levy, or distress for as long as it lasts, and outranks any lien created afterward.
Full Text of § 8.01-525.10
Plain-English Summary
This section is what gives the salary assignment its teeth. Once the court has approved the assignment, appointed a trustee, and the trustee has notified the creditors named in it, the arrangement becomes binding on all of them; they cannot opt out and pursue the debtor separately. In exchange for accepting the collective plan, the debtor’s salary, wages, or income become off-limits to garnishment, levy, or distress for as long as the assignment remains in effect.
The protection also has a priority feature: the assignment outranks any lien a creditor tries to obtain afterward. A creditor who sits out the assignment and later tries to reach the debtor’s wages through a new lien finds that the assignment already has first claim.
The trade-off is time-limited; the exemption lasts only as long as the assignment exists. If the assignment ends, whether through completion or court termination, the wages return to their normal exposure to creditor collection.
Frequently Asked Questions
What three things must happen before the assignment becomes binding?
The court must execute and approve it, a trustee must be appointed, and notice must go out to the creditors listed in the assignment.
What protection does the debtor get once those steps are complete?
His salary, wages, or income become exempt from garnishment, levy, or distress while the assignment is in existence.
Does the exemption last forever?
No. It applies only during such time as the assignment is in existence.
What happens to liens obtained after the assignment is approved?
The assignment has priority over all liens subsequently obtained.
Is the assignment binding on creditors who were not given notice?
The section ties the binding effect to notice being given to the creditors listed in the assignment.
Amendment History
1936, p. 524; Michie Code 1942, § 5278h; Code 1950, § 55-165; 2019, c. 712.
Source & verification. Section text and amendment history are
reproduced verbatim from the Code of Virginia, published by the
Code of Virginia, Virginia Division of Legislative Automated Systems. Last verified July 16, 2026.
· Official source
Also known as: virginia wage assignment exempt from garnishmentassignment priority over liens virginiaprotection from levy wage assignment virginiawage assignment exemption from distress