Judgments and Enforcement:

A money judgment obtained from the General District Court is enforceable for a period of ten (10) years and may be extended by Court Order for another ten (10) years. (VA Code 16.1-69.55.) Judgments obtained from the Circuit Court is generally enforceable for a period of twenty (20) years and may be extended by Court Order for another twenty (20) years. (VA Code 8.01-251.)

The State of Virginia permits Confession of Judgment. A debtor or his attorney-in-fact, acting under a Power of Attorney, may appear before the Clerk of the appropriate Court and sign a confession of judgment. The form of the confession of judgment must substantially conform to the format set forth in Virginia Code 8.01-436. When a judgment is confessed, the Clerk of the Court shall endorsed upon such confession, or attach thereto, his certificate in the format as prescribed in Virginia Code 8.01-437, and serve a certified copy of the Order upon the debtor or his attorney in fact within ten (10) days. A judgment by confession generally may be enforced in the same manner as a judgment issued by the Court. However, if the underlying obligation under the confession of judgment was for personal, family or household purposes, it may not be enforced until twenty-one (21) days after its entry to give the judgment debtor an opportunity to seek a court order to set it aside. (VA Code 8.01-433, 434.)

Every judgment becomes a lien on the judgment debtor's real property when it is recorded on the judgment lien docket of the clerk's office of the county or city where the land is situated. (VA Code 8.01-458.) A judgment creditor may execute the judgment by levying on the real and personal property of the judgment debtor, including the garnishment of wages. Generally, the amount of earnings which may be garnished may not exceed twenty-five percent (25%) of the judgment debtor's non-exempt disposable earning. (VA Code 34-29.) A garnishee-employer generally may charge and collect a fee of up to $10.00 from a judgment debtor for processing the garnishment summons. (VA Code 8.01-512.2.)

Foreign Judgments:

Any judgment, decree, or order of a court of the United States or of any other court is entitled to full faith and credit in the State of Virginia. (VA Code 8.01-465.1 et seq.) A judgment creditor may seek enforcement of a foreign judgment by filing an authenticated copy of the foreign state judgment, an affidavit setting forth the name and last known post office address of the judgment debtor and creditor in the appropriate court of Virginia, and payment of a prescribed fee. (Virginia Code 8.01-465.2, 8.01-465.3.) The Clerk of the Court, and the creditor, generally is required to send a notice of the filing of the foreign judgment to the judgment debtor. A foreign judgment has the same effect and is subject to the same procedures, defenses, and proceedings for reopening, vacating or staying as a judgment of any court in the State of Virginia. (VA Code 8.01-465.2.) However, a foreign judgment may not be enforced in the State of Virginia if it is more than ten (10) years old. (VA Code 8.01-252.)

Interest:

Legal rate: 8% per annum. (VA Code 6.1-330.53.) In a transaction involving goods and services on open accounts, interest at the legal rate may accrue sixty (60) days after mailing of a billing statement or invoice. (VA Code 6.1-330.77.1.)

Contract rate: 12% per annum except as to those rates otherwise permitted under other provisions of the Virginia Code. (VA Code 6.1-330.55.)

Judgment rate: 9% per annum, except that when a money judgment is entered in an action arising from a contract which specifies an agreed interest rate, either the judgment rate or the contract rate, whichever is higher, may apply. (VA Code 6.1-330.54.)

In general, a debtor may claim exemption of his homestead and certain personal property from attachment and execution of a judgment, or in a bankruptcy proceeding. Virginia permits every householder exemption of real and personal property from creditor process arising out of a debt, an amount up to $5,000.00 in value, and an additional $500 in value for each dependent. (VA Code 34-4.) In addition, Virginia provides certain enumerated poor debtor's exemption. Some of these exemptions include the family Bible, wedding and engagement rings, family portraits and heirlooms not to exceed $5,000.00 in value, burial ground, wearing apparel, household furniture and furnishings, book, tools, and motor vehicle not to exceed $2,000 in value. (VA Code 34-26.) Court award or settlement proceeds from personal injury or wrongful death actions generally are also exempt. (VA Code 34-28.1.)

In a bankruptcy proceeding, a debtor, who is a resident of Virginia, is not permitted to elect the exemptions provided under the federal Bankruptcy Code even if the federal exemptions may be more beneficial in his situation. (VA Code 34-3.1.)

An action for the recovery of money or other damages generally must be filed within a statutory period of time or such action may be barred forever. Some of the time limitations relevant to credit and collection matters are as follows: