Alliance Settlement helps Virginia residents negotiate unsecured debts like credit cards, personal loans and medical bills down to an amount they can afford. Before you decide, it helps to know how Virginia handles lawsuits, garnishment and old debts.
| Virginia debt facts at a glance | |
|---|---|
| Statute of limitations (credit cards) | 3 years (open account) |
| Wage garnishment for consumer debt | Stricter than federal |
| Notable protection | Licensed settlement providers |
Credit card debt and the statute of limitations in Virginia
Virginia gives creditors 3 years on open accounts and 5 years on written contracts. The statute of limitations limits how long a creditor can sue; it doesn't erase the debt or remove it from your credit report, where negative items generally stay up to seven years.
Wage garnishment in Virginia
Virginia limits garnishment to the lesser of 25% or the amount above 40 times the minimum wage. Garnishment requires a court judgment first, which is one reason resolving debts before a lawsuit matters.
Other Virginia consumer protections
Virginia licenses debt settlement providers through the State Corporation Commission and bars fees until a debt is settled and paid on.
How debt relief companies are regulated in Virginia
Virginia licenses debt settlement providers. Under federal rules, debt settlement companies that sell services by phone can’t charge fees until they’ve settled or changed at least one of your debts and you’ve made a payment under that agreement. Ask any company how it is licensed or authorized to serve Virginia residents, and get every term in writing.
How debt settlement works with Alliance Settlement
- Free consultation. We review your debts, income and budget and tell you honestly whether settlement fits.
- Build your savings. You make one affordable monthly deposit into a dedicated account you control.
- We negotiate. As funds build, we negotiate with each creditor to settle for less than the balance owed.
- Get resolved. Each settlement is documented in writing, and you approve every one.
Settlement isn’t right for everyone. It can affect your credit and may have tax consequences on forgiven amounts. Learn more in does debt settlement hurt your credit?, or get a free consultation.
Frequently asked questions
How long can a creditor sue me for credit card debt in Virginia?
Virginia gives creditors 3 years on open accounts and 5 years on written contracts. An expired statute of limitations is a defense you usually have to raise in court, so never ignore a lawsuit, even on an old debt.
Can my wages be garnished for credit card debt in Virginia?
Virginia limits garnishment to the lesser of 25% or the amount above 40 times the minimum wage.
Will debt settlement hurt my credit?
Usually yes at first, mostly because of missed payments during the program, but scores often begin to recover after accounts are resolved. Read our guide: does debt settlement hurt your credit?
Does Alliance Settlement work with Virginia residents?
Yes. Alliance Settlement works with clients throughout Virginia, including Northern Virginia, Richmond, Virginia Beach and Norfolk, by phone and online.
This page provides general information, not legal or tax advice. Laws change; consult a qualified professional about your situation.