The trustee shall immediately upon receipt of such salary, wages, or income, or at such other time as the court may direct, disburse the funds as follows:
§ 8.01-525.9.Debts; order of payment.
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 trustee must first set aside for the debtor whatever amount the law exempts, or an amount for necessities agreed to by the creditors if he is not a householder or head of a family, and only then divide the balance among the creditors pro rata or by whatever split they have agreed to.
Full Text of § 8.01-525.9
1. The trustee shall first pay to the debtor directly, or for his benefit as the court may direct, any amount the debtor may be entitled to as exempt by law if he is a householder and head of a family or, if he is not a householder or head of a family, then such amount for the necessities of life as may be agreed upon by the creditors in the assignment. Nothing in this subdivision shall prevent the trustee from paying to the debtor a greater amount than is exempt by law if agreed to by the creditors and approved by the court.
2. The trustee shall next pay, according to such funds as he has in his possession, a pro rata share of the balance to all the creditors on an equal basis or in such proportions as the creditors may agree.
Plain-English Summary
This section fixes the order in which a trustee must pay out the money he collects from the debtor’s salary, wages, or income, and it puts the debtor’s own needs first. If the debtor is a householder and head of a family, the trustee pays him, directly or for his benefit, whatever amount the law treats as exempt before anything goes to creditors. If he does not qualify as a householder or head of a family, he instead gets whatever amount for the necessities of life the creditors agreed to in the assignment itself.
The trustee is not locked into the bare legal minimum. With the creditors’ agreement and the court’s approval, he can pay the debtor more than the statutory exemption, useful when the parties recognize the debtor needs more than the exemption amount to get by while the assignment runs.
Only after that first payment does the trustee turn to the creditors, splitting whatever remains pro rata on an equal basis, or in whatever different proportions the creditors have agreed among themselves. The trustee must make these disbursements as soon as he receives the funds, unless the court sets a different schedule.
Frequently Asked Questions
What is the first payment the trustee makes?
To the debtor, directly or for his benefit, the amount exempt by law if he is a householder and head of a family.
What if the debtor is not a householder or head of a family?
He receives whatever amount for the necessities of life the creditors agreed upon in the assignment.
Can the trustee give the debtor more than the legal exemption?
Yes, if the creditors agree to it and the court approves.
How is the remaining money divided among creditors?
Pro rata on an equal basis, or in whatever proportions the creditors have agreed to.
When must the trustee make these payments?
Immediately upon receiving the funds, or at such other time as the court directs.
Amendment History
1936, p. 524; Michie Code 1942, § 5278g; Code 1950, § 55-164; 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 order of paymenttrustee pro rata creditors virginiahouseholder exemption wage assignment virginiapriority of payment creditors trustee