2006 Code of Virginia § 60.2-600 - No assignment of benefits; exemptions

60.2-600. No assignment of benefits; exemptions.

Any assignment, pledge or encumbrance of any right to benefits which are ormay become due or payable under this title shall be void except as providedin this section and in 60.2-608, 60.2-608.1, 60.2-608.2, and 60.2-633.Such rights to benefits shall be exempt from levy, execution, attachment,garnishment or any other legal process provided for the collection of debt,even if the compensation is used for purchase of shares in a credit union, ordeposited into an account with a financial institution or other organizationaccepting deposits and is thereby commingled with other funds, except debtsincurred for necessaries furnished to such individual, his spouse ordependents during the time when such individual was unemployed. Any waiver ofany exemption provided for in this section shall be void.

Upon an order of garnishment, attachment or other levy addressed to afinancial institution in which the principal defendant claims to have exemptfunds hereunder, the principal defendant may file an answer asserting theexemption hereunder. From the time of service of such garnishment, attachmentor levy, the financial institution, until further order of the court, shallhold the amount subject to such garnishment, attachment or levy, or suchlesser amount or sum as it may have, which amount shall be set forth in itsanswer. It shall hold such amount free of any person drawing against suchfunds whether by check against such account or otherwise. The financialinstitution shall be subject to such further order or subpoena for discoveryof its records, for which it shall be entitled an order or agreement forcompensation for the expense of such service, and in a case deemedappropriate to the court by such an order directing deposit of funds orfurther security prior to such records being ordered produced.

(Code 1950, 60-108; 1968, c. 738, 60.1-125; 1986, c. 480; 1987, c. 331;1996, c. 107; 1997, c. 385.)