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 sentenceThe court can void the assignment for noncompliance after a hearing on motion, revoke it on its own motion whenever it decides justice is not being served, or, once the debtor has satisfied its terms, discharge the trustee and direct the employer to resume paying the debtor directly.
Full Text of § 8.01-525.11
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The court may, at any time, upon a motion stating that the terms of the assignment are not being complied with, order the debtor and trustee to appear before the court, and the court may, if the evidence justifies, or, in its discretion, declare the assignment null and void. When such action is taken by the court, a written notice shall be sent to all persons named in the assignment.
The court may, on its own motion, revoke the assignment whenever it determines that the ends of justice are not being attained.
When the assignment has been fully complied with, the court shall discharge the trustee and notify the employer of the debtor, if there is one, that the debtor is entitled to receive his entire salary, wages, or income directly.
Plain-English Summary
Because the salary assignment binds creditors and shields the debtor’s wages, the court keeps supervisory power to make sure it still serves its purpose. Any interested party can file a motion alleging the assignment’s terms are not being followed, which brings the debtor and trustee before the court; if the evidence supports it, or the court decides in its discretion, the judge may declare the assignment null and void, after which written notice goes out to everyone named in it.
The court does not need a motion to act. It may revoke the assignment on its own whenever it concludes the arrangement no longer serves the ends of justice, giving the judge continuing oversight even without a complaint from a creditor or the debtor.
When things go as planned and the debtor fully complies with the assignment’s terms, the court discharges the trustee and notifies the debtor’s employer that he is entitled to receive his full salary directly again, closing out the supervised arrangement.
Frequently Asked Questions
How can the assignment be challenged for noncompliance?
By a motion stating that the terms of the assignment are not being complied with, which brings the debtor and trustee before the court.
Can the court end the assignment on its own, without a motion?
Yes. The court may revoke the assignment on its own motion whenever it determines the ends of justice are not being attained.
What happens once the assignment is declared void?
A written notice is sent to all persons named in the assignment.
What happens when the debtor finishes paying under the assignment?
The court discharges the trustee and notifies the employer that the debtor is entitled to receive his entire salary, wages, or income directly.
Does the court have discretion in deciding whether to void the assignment?
Yes. It may act “if the evidence justifies, or, in its discretion.”
Amendment History
1936, p. 524; Michie Code 1942, § 5278i; Code 1950, § 55-166; 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:terminate wage assignment virginiavoid wage assignment for creditors virginiadischarge trustee wage assignment virginiarevoke assignment salary creditors