Vermont Laws on Wage Garnishments, Statute of Limitations on Debt, and Bankruptcy Property Exemptions
WAGE GARNISHMENT EXEMPTION: 75% of earnings above minimum wage or amount necessary to support family
MAXIMUM INTEREST RATE: Legal: 12% Judgment: 12%
STATUTE OF LIMITATIONS ON ENFORCEMENT:
Open Account (credit cards): 6 year
Written Contract: 6 yearsDomestic Judgment: 8 yearsForeign Judgment: 8 yearsBAD CHECK LAW DAMAGES: Amount of check plus court costs, attorney's fees
VERMONT BANKRUPTCY PROPERTY EXEMPTIONS (Vermont Statutes Annotated):
Can use either the state exemptions below or the federal exemptions
The State of Vermont has exempted the property and income below from seizure by the bankruptcy court to pay creditors:
Real Property: Real property or mobile home to $75,000 [27-101]
Personal Property: Animals, appliances, clothing, furnishings, goods, books, crops and musical instruments up to $2,500 total [12-27-2740(5)]; books and tools of trade up to $5,000 [12-2740(2)]; freezer, heating unit, refrigerator, sewing machines, water heater, and stove, unlimited amount [12-2740(8)]; jewelry up to $500, but unlimited amount for wedding ring [12-2740(3) and (4)]; bank deposits up to $700 [12-2740(i)(15)]; health aids, unlimited amount [12-2740(17)]; motor vehicle up to $2,500 [12-2740(1)]; 10 cords of firewood, or 5 tons of coal or 500 gallons of heating oil or 500 gallons of bottled gas [12-2740(9) and (10)]; crops and animals, three swarms of bees up to $5,000, and 10 chickens, 2 goats, 2 horses, 10 sheep, yoke of oxen or steers and enough feed to last through the winter [12-2740(6), (11) and (13)]; farm equipment consisting of two chains, two harnesses, two halters and plow and yoke [12-2740(14)]; lost future earnings, unlimited amount [12-2740(19)(l)]; personal injury recoveries and wrongful death recoveries, unlimited amount [12-2740(19)(F) and (G)]
Insurance / Annuities: Fraternal society benefits, unlimited amount [8-4478]; annuity contract benefits up to $350 per month [8-3709]; group life or health benefits, unlimited amount [8-3708]; life insurance proceeds if beneficiary is not the insured, unlimited amount [8-3706]; supplemental disability benefits, unlimited amount [8-3707]; life insurance proceeds, unlimited amount [12-2740(19)(H)]; life insurance proceeds if policy prohibits proceeds from being used to pay creditors, unlimited amount [8-3705]; health benefits up to $200 per month [8-4086]; disability or illness benefits, amount needed for support [12-2740(19)(C)]; unmatured life insurance contract, unlimited amount [12-274(18)]
How to Deal with Debt Collectors
Federal and State Laws Regarding Debt Collection
State Laws Regulating Wage Garnishments
Pensions / Retirement Plans: Municipal employees, unlimited amount [24-5066]; IRAs, Keoghs to $10,000 [12-2740(6)]; state employees, unlimited amount [3-476]; teachers, unlimited amount [16-1946]; any pensions, unlimited amount [12-2740(19)(j)]
Public Benefits / Entitlements: Social Security, amount needed for support [12-2740(19)(A)]; unemployment compensation, unlimited amount [21-1367]; crime victims compensation, amount needed for support [12-2740(19)(E); veterans benefits, amount needed for support [12-2740(19)(B)]; workers compensation, unlimited amount [21-681]; aid to aged, blind, disabled and families with dependent children and general assistance, unlimited amount [33-124]
Wages: 75% of earned but unpaid wages, but unlimited amount if debtor received welfare within two months of filing bankruptcy [12-3170]
Miscellaneous: Alimony or child support, amount needed for support [12-2740(19)(D)]; business partnership property, unlimited amount [11-1282]; any property up to $400 [12-2740(7)]
