When the debt collectors start calling for credit card bills or medical debt, it’s only a matter of time before they get a hold of someone’s bank account. In many cases, the debt collectors can zero out the bank accounts of people who are already in crisis.
“When a creditor garnishes a bank account, it can really be devastating,” says Jay Speer at the Virginia Poverty Law Center. “The account holder is notified that their funds are frozen, and then you can’t pay your rent and you can’t pay your utilities. And so for some people it becomes a downward spiral.”
That’s why Delegate Phil Hernandez of Norfolk has a bill that would preserve the last $5,000 in a bank account…