Wage garnishment and exemptions in Vermont

In Vermont, a creditor can take no more than 15% of your pay. Here is what is protected in your bank account, the property you can keep and how to claim an exemption.

Short answer

Vermont sets a lower limit than federal law: no more than 15% of your pay. Stricter for consumer credit debts: you keep the greater of 85% of weekly disposable earnings or 40 times the federal minimum wage. Other debts: you keep the greater of 75% or 30 times the federal minimum wage. In a bank account: $700 in bank deposits (12 V.S.A. § 2740(15)).

Wage limit
Up to 15%
Federal benefits in a bank account
Up to 2 months protected
Law
12 V.S.A. § 3170; 12 V.S.A. § 2740

Vermont's limit on wage garnishment

Wage limit
Stricter for consumer credit debts: you keep the greater of 85% of weekly disposable earnings or 40 times the federal minimum wage. Other debts: you keep the greater of 75% or 30 times the federal minimum wage. You can ask the court to protect more if you need it for basic expenses for you and your dependents.
Head of household
No fixed head-of-household rule, but the court must protect more if your reasonable weekly expenses for yourself and dependents exceed the standard amount (12 V.S.A. § 3170(b)(3)). No wage garnishment if you got DCF or DVHA assistance in the 2 months before the hearing (§ 3170(a)).
Law
12 V.S.A. § 3170; 12 V.S.A. § 2740

In our 48 state guides, 13 states, Vermont among them, cap garnishment at 15% or less, below the federal 25% (15 U.S.C. 1673(a)).

In nearby states

Vermont exemptions for your home, car and belongings

  • Homestead up to $125,000 (27 V.S.A. § 101).
  • Motor vehicles up to $2,500, household goods up to $2,500, plus a $400 wildcard and up to $7,000 of unused amounts (12 V.S.A. § 2740).

Good to know in Vermont

  • Any waiver of Vermont's wage garnishment protections is void (12 V.S.A. § 3170(d)).

Bank accounts and garnishment in Vermont

$700 in bank deposits (12 V.S.A. § 2740(15)).

Your bank must automatically protect two months of directly deposited Social Security, SSI or VA benefits (31 CFR 212.5, 212.6). Read the debt lawsuit guide.

No garnishment without a judgment in Vermont

If you don't answer after being served by a sheriff or constable, the plaintiff may ask for a default judgment, and the judge can enter one if the plaintiff proves the claim (Vermont Judiciary).

The time to answer in Vermont: Small claims: if the papers came by mail, you have 30 days from the date they were mailed to file an answer; if a sheriff or constable served you, 30 days from the date of service (Vermont Judiciary).

What to do if you are sued in Vermont

Protecting your pay and property in Vermont

  1. Read every notice

    Exemption deadlines on court, employer or bank papers can be short, so mark them at once.

  2. Know Vermont's limit

    Vermont's wage rule: Stricter for consumer credit debts: you keep the greater of 85% of weekly disposable earnings or 40 times the federal minimum wage. No fixed head-of-household rule, but the court must protect more if your reasonable weekly expenses for yourself and dependents exceed the standard amount (12 V.S.A. § 3170(b)(3)).

  3. Protect your bank money

    Vermont also protects money in an account: $700 in bank deposits (12 V.S.A. § 2740(15)). Check that the bank protected your direct-deposited benefits (31 CFR 212.6).

  4. Claim your exemptions in court

    File the court's exemption claim form before the deadline; the clerk has it. Start with Vermont court self-help (official).

Questions about garnishment in Vermont

Can a creditor take my wages in Vermont, and how much?

Stricter for consumer credit debts: you keep the greater of 85% of weekly disposable earnings or 40 times the federal minimum wage. Other debts: you keep the greater of 75% or 30 times the federal minimum wage. You can ask the court to protect more if you need it for basic expenses for you and your dependents.

How much money in a bank account is protected in Vermont?

$700 in bank deposits (12 V.S.A. § 2740(15)).

Is there a head-of-household exemption in Vermont?

No fixed head-of-household rule, but the court must protect more if your reasonable weekly expenses for yourself and dependents exceed the standard amount (12 V.S.A. § 3170(b)(3)). No wage garnishment if you got DCF or DVHA assistance in the 2 months before the hearing (§ 3170(a)).

What are Vermont's property exemptions?

Homestead up to $125,000 (27 V.S.A. § 101). Motor vehicles up to $2,500, household goods up to $2,500, plus a $400 wildcard and up to $7,000 of unused amounts (12 V.S.A. § 2740).

Are my Social Security and VA benefits safe in a Vermont bank account?

Your bank must automatically protect two months of directly deposited Social Security, SSI or VA benefits (31 CFR 212.5, 212.6). $700 in bank deposits (12 V.S.A. § 2740(15)).

More for Vermont

Sources

Last checked: Oct 24, 2026.

Federal sources