HB1610 - ericsundberg/legwiki GitHub Wiki
| House | Senate | Conference | Governor | ||||||||||||
| Committee | Floor | Committee | Floor | ||||||||||||
| Referred to Committee | Referred to Subcommittee | Subcommittee | Committee | 1st | 2nd | 3rd | Referred to Committee | Referred to Subcommittee | Subcommittee | Committee | 1st | 2nd | 3rd | ||
| General | |||||||||||||||
State debt collection; statute of limitations. Establishes a seven-year statute of limitations on the commencement of any action by a state agency or institution to collect past due accounts receivable due to the Commonwealth.
- Joshua G. Cole (chief patron)
- None
The language of HB1610 can be viewed here.
[Move]
HB1610 sets a seven-year statute of limitations on actions to collect state debts, similar to the protections already in place for credit debt, which falls off credit reports after seven years. Additionally, last year we passed HB34 which Governor Youngkin signed into law establishing a three-year statute of limitations for medical debt collection, further reinforcing the idea that outdated debts should not burden Virginians indefinitely.
This bill ensures fairness and promotes financial stability for individuals across the Commonwealth. As a promise to working Virginians, who are most likely the most impacted by this current practice, by passing this legislation we are giving a hand up to those who need it the most.
n/a
Thank you Mr. Speaker, I move the committee amendment.
Thank you Mr. Speaker:
"At the end of every seven years you must cancel debts." – Deuteronomy 15:1
HB1610 sets a seven-year limit on state debt collection, aligning with existing protections for credit debt and reinforcing the principle that outdated debts shouldn't burden Virginians indefinitely.
Chair and Members of the Committee,
HB1610 sets a seven-year limit on state debt collection, ensuring fairness and preventing Virginians from facing decades-old debts. It modernizes collections by requiring large debts ($3,000+) to go to the Debt Collection Division, improving transparency, and protecting patients at VCU Health and UVA Medical Center from aggressive medical debt collection.
Chair and Members of the Committee,
HB1610 establishes a seven-year statute of limitations on state agencies collecting past-due accounts, ensuring Virginia’s debt collection practices are fair and transparent.
Right now, there is no statute of limitations on past-due receivables in the Commonwealth. This means Virginians can face collection efforts on decades-old debts, creating financial strain with no clear timeframe for resolution. HB1610 ensures that state agencies act in a timely manner, preventing unfair surprises while still allowing reasonable efforts to collect debts.
This bill modernizes Virginia’s debt collection system by:
• Setting a seven-year limit on collections.
• Encouraging the use of modern collection methods, like credit reporting and garnishments.
• Requiring large debts ($3,000+) to go to the Debt Collection Division after 60 days.
• Ensuring fairer treatment of smaller debts through private agencies.
• Protecting Virginians from aggressive medical debt collection at VCU Health and UVA Medical Center unless financial assistance has been considered.
• This is a necessary and overdue step to bring clarity and fairness to state debt collection. I hope it would be the will of the committee to report the bill.