After a debt judgment in Vermont: garnishment, bank levy, exemptions

What can be taken from your pay and bank account, and how to claim exempt money.

Checked against official sources: Oct 24, 2026.

Short answer

After a judgment, the creditor can ask the court to take part of your pay or freeze your bank account, but some money is exempt (protected by law). Mark the exempt-income box on your Small Claims Answer and file the Disclosure of Exempt Income (form 100-00128) – and a Financial Disclosure (form 100-00127) if needed.

How long it lasts
8 years
Interest after the judgment
12%
Exemption form
Official exemption form

How to claim an exemption in Vermont

Mark the exempt-income box on your Small Claims Answer and file the Disclosure of Exempt Income (form 100-00128) – and a Financial Disclosure (form 100-00127) if needed. The creditor must serve you the List of Exemptions (form 100-00511) with a trustee-process or financial-disclosure hearing notice at least 14 days before the hearing; raise your exemptions at that hearing.

Law: 12 V.S.A. §§ 2740, 3170; Vermont Judiciary – Collecting a Small Claims Judgment

Official exemption form

Count your deadline to claim an exemption

The date is counted in your browser.

Read the notice you got from the court, your bank or your employer.

An estimate from our state data, not legal advice. Court holidays and local rules can change a deadline. File early, and ask the court clerk if you are not sure.

Exemption claim cover letter

Your paycheck after a judgment in Vermont

For consumer credit debts you keep the greater of 85% of weekly disposable earnings or 40 times the federal minimum wage; for other debts, 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. No wage withholding if you got DCF or DVHA assistance in the 2 months before the hearing. Wages are taken only by court order after a trustee-process hearing.

Law: 12 V.S.A. § 3170

These garnishment limits are from our sister site, which checks them against official sources: Debt Collector Map: Vermont

For an ordinary debt, a creditor can take at most 25% of your take-home pay, or the part above 30 times the federal minimum wage if that is less. Many states protect more.

Law: 15 U.S.C. 1673(a)

The judgment's life in Vermont

Interest after the judgment

12% a year (Vermont's legal rate). Interest accrues at 12% a year if you agree to pay or a judgment is entered (Vermont Judiciary).

How long it lasts

8 years. The creditor can renew the judgment by filing a new action on it before the 8 years end. A judgment lien on real property also lasts 8 years.

Law: 9 V.S.A. § 41a(a); 12 V.S.A. §§ 506(a), 2903

Judgment interest and how long a judgment lasts, by state

Your bank account after a judgment in Vermont

Non-wage trustee process (for example, a bank account) requires a motion and court order. $700 in bank deposits is exempt.

Law: 12 V.S.A. § 2740(15)

Your bank must protect up to two months of Social Security, SSI, VA and some other federal benefits that were paid into your account by direct deposit. You don't have to ask.

Law: 31 CFR 212.5, 212.6

Steps to protect your money in Vermont

  1. Read every notice

    Each notice may start a short deadline, so read it right away.

  2. Gather proof

    Benefit letters and bank statements show which money is exempt.

  3. File the claim on time

    Vermont's rule: Mark the exempt-income box on your Small Claims Answer and file the Disclosure of Exempt Income (form 100-00128) – and a Financial Disclosure (form 100-00127) if needed.

  4. Go to the hearing

    A judge decides disputed claims; bring every paper.

Free legal help in Vermont

Questions about collection after a judgment in Vermont

How much interest does a judgment add in Vermont?

12% a year (Vermont's legal rate). Interest accrues at 12% a year if you agree to pay or a judgment is entered (Vermont Judiciary).

When does a judgment expire in Vermont?

8 years. The creditor can renew the judgment by filing a new action on it before the 8 years end. A judgment lien on real property also lasts 8 years.

Can my wages be garnished in Vermont?

For consumer credit debts you keep the greater of 85% of weekly disposable earnings or 40 times the federal minimum wage; for other debts, 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. No wage withholding if you got DCF or DVHA assistance in the 2 months before the hearing. Wages are taken only by court order after a trustee-process hearing.

Can a creditor take money from my bank account in Vermont?

Non-wage trustee process (for example, a bank account) requires a motion and court order. $700 in bank deposits is exempt.

How do I protect exempt money in Vermont?

Mark the exempt-income box on your Small Claims Answer and file the Disclosure of Exempt Income (form 100-00128) – and a Financial Disclosure (form 100-00127) if needed. The creditor must serve you the List of Exemptions (form 100-00511) with a trustee-process or financial-disclosure hearing notice at least 14 days before the hearing; raise your exemptions at that hearing.

More for Vermont

Sources

Sources

Last checked: Oct 24, 2026.

Federal sources