Virginia Code

Va. Code Ann. § 65.2-531 (2026)

Assignments of compensation; exemption from creditors' claims

✓ current as of May 2026
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A. No claim for compensation under this title shall be assignable. All compensation and claims therefor shall be exempt from all claims of creditors, even if the compensation is used for purchase of shares in a credit union, or deposited into an account with a financial institution or other organization accepting deposits and is thereby commingled with other funds. However, benefits paid in compensation or in compromise of a claim for compensation under this title shall be subject to claims for spousal and child support subject to the same exemptions allowed for earnings in § 34-29.

B. Upon an order of garnishment, attachment or other levy addressed to a financial institution in which the principal defendant claims to have exempt funds hereunder, the principal defendant may file an answer asserting the exemption hereunder. From the time of service of such garnishment, attachment or levy, the financial institution, until further order of the court, shall hold the amount subject to such garnishment, attachment or levy, or such lesser amount or sum as it may have, which amount shall be set forth in its answer. It shall hold such amount free of any person drawing against such funds whether by check against such account or otherwise. The financial institution shall be subject to such further order or subpoena for discovery of its records, for which it shall be entitled an order or agreement for compensation for the expense of such service, and in a case deemed appropriate to the court by such an order directing deposit of funds or further security prior to such records being ordered produced.

Code 1950, § 65-79; 1968, c. 660, § 65.1-82; 1987, c. 331; 1990, c. 747; 1991, c. 355; 1997, cc. 796, 895.

Notes of Decisions
Cited in 5 cases, 1994–2017 · leading case: In Re Nelson, 179 B.R. 811 (Bankr. W.D. Va. 1994).
In Re Nelson, 179 B.R. 811 (Bankr. W.D. Va. 1994). · cites it 9× “The legal issue before the Court is whether or not a mobile home and lot upon which the same is located is exempt property which was purchased by workmen’s compensation benefits under Va.Code § 65.2-531. The parties have stipulated the material facts relevant to the issue.”
Jeffrey Minor v. Aramark/VCU & Indem. Ins. Co. of North Am., 721 S.E.2d 818 (Va. Ct. App. 2012). · cites it 2× “Code § 65.2-531(A) (“[B]enefits paid in compensation or in compromise of a claim for compensation under this title shall be subject to claims for spousal and child support.”
In re Apfel, 565 B.R. 349 (Bankr. E.D. Va. 2017). · cites it 33× “Va. Code Ann. § 65.2-531 (A) (2016) (emphasis added).”
Adcock v. Com., Dept. of Soc. Servs., 693 S.E.2d 757 (Va. Ct. App. 2010). · cites it 4× “2-1960 authorize the DCSE to enforce child support and spousal support under certain circumstances.”
Thomas E. McGlathery v. Sharron A. McGlathery (Va. Ct. App. 1997). “1 Assuming, without deciding, that husband's workers' compensation benefits are insulated from wife's claim, the decree of the trial court did not constitute an assignment of such award to wife or subject it to a creditor claim in violation of Code § 65.”
Va. Code Ann. § 65.2-531(A): 1 case
Jeffrey Minor v. Aramark/VCU & Indem. Ins. Co. of North Am., 721 S.E.2d 818 (Va. Ct. App. 2012). “Code § 65.2-531(A) (“[B]enefits paid in compensation or in compromise of a claim for compensation under this title shall be subject to claims for spousal and child support.”
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