Virginia Credit Laws
| INTEREST RATE | (Legal: 8%) |
Judgment 9% or contract rate whichever is higher Corporations and business loans do not have a usury limit, and loans over $ 5,000 for "business" or "investment" purposes are also exempt from usury laws. Consumer loans are regulated and have multiple rates. |
| STATUTE OF LIMITATIONS | (In Years) |
Open Acct: 3 Last charge or payment - Written Contract 5 - Domestic Judgment 20 - Foreign Judgment 10 - Sales of goods under article 2 is 4 years |
| BAD CHECK LAWS | (Civil Penalty) | Lesser of $250 or three times check amount |
| GENERAL GARNISHMENT EXEMPTIONS | See federal law | |
| HOMESTEAD EXEMPTION |
$5,000 plus $500 per dependent. Veterans with a disability of 40% or more are entitled to an exemption of up to $2,000 for any real or personal property. A couple may double the amount. Property held in tenancy by the entirety is exempt from the debts owed by one spouse. A debtor must file a homestead declaration before the sale of property. The homestead may include a mobile home. A bill, House Bill 1642, has been passed to increase the Homestead Exemption from $5,000 to $25,000. The bill made it to the Senate for approval and is currently in the Courts of Justice. |
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| ADDING FEES | Charge on open accounts: In the event of a sale of goods or the provision of services on open accounts where there is no written agreement for closed end credit under § 6.1-330.77 and no open end credit plan under § 6.1-330.78, the seller or provider shall be entitled to and may collect interest at the rate specified in § 6.1- 330.53 upon the unpaid balance if the purchaser or recipient of such goods or services fails to make payment in full within sixty days after mailing or presentation of a billing statement or invoice. Such interest shall begin to accrue on the day following such sixty-day period. |