State Debt Laws
Vermont Debt Collection Laws
Garnishment limits, exemptions, and consumer protections specific to Vermont
Vermont (VT) - At a Glance
| State Consumer Protection Law | Vermont Consumer Protection Act |
| Source | 9 V.S.A. ยง 2451 et seq. |
| Covers Original Creditors? | YES - covers original creditors too |
| Max Wage Garnishment | 15% of disposable earnings (federal minimum; may be lower) |
| Bank Levy Exemption | $2,500 in bank |
| Homestead Exemption | $125,000 |
Key Protections in Vermont
- CPA covers original creditors and collectors
- Lower wage garnishment cap (15%)
- High homestead exemption ($125K)
- Triple damages for CPA violations
Wage Garnishment in Vermont
After a court judgment, creditors in Vermont can garnish up to 15% of your disposable earnings (earnings after legally required deductions). This is the federal cap - Vermont follows federal law on this limit.
Exempt from garnishment: Federal benefits (Social Security, SSI, VA benefits) cannot be garnished by private creditors regardless of state law.
File a Complaint in Vermont
If a debt collector violates the FDCPA or Vermont Consumer Protection Act:
- File with the Vermont Attorney General
- File with the CFPB
- Consult a consumer attorney (FDCPA violations = attorney fees paid by collector)