Debt relief in Vermont: collection rules, time limits and your options
Updated November 9, 2026
Vermont at a glance (checked November 2026)
| Vermont | |
|---|---|
| Time limit to sue on credit cards and most consumer debts | 6 years |
| Wage garnishment for consumer debt | Up to 15% of take-home pay, and only after a court hearing |
| State debt collection rules | Attorney General's Consumer Protection Rule 104, which covers original creditors too |
| Who licenses debt adjusters | Department of Financial Regulation |
| Where to complain | Attorney General's Consumer Assistance Program, and the CFPB |
Debt collection rules in Vermont
Vermont's Attorney General has a consumer protection rule on collection practices, Rule CP 104, that applies to creditors collecting their own debts as well as to collection agencies. Among other things, it bars contacting you before 8 a.m. or after 9 p.m. The Attorney General's Consumer Assistance Program takes complaints about collectors and creditors.
The federal Fair Debt Collection Practices Act applies to third-party collectors too. A collector can't threaten arrest or a lawsuit it doesn't plan to file, or misstate what you owe. It must send you a validation notice, and if you dispute the debt in writing within 30 days, it has to stop until it verifies the debt.
How long creditors have to sue
Vermont gives creditors 6 years for most debts, including credit cards, personal loans and medical bills (12 V.S.A. § 511). The clock usually starts when you default, and a payment can restart it, so check how old a debt is before you pay anything on it.
If you're sued, answer on time. You have 21 days after you're served in the Civil Division of Superior Court, or 30 days in Small Claims Court. If you don't answer, the creditor can ask for a default judgment.
What can be garnished in Vermont
In Vermont, wage garnishment is called trustee process, and a creditor needs a court hearing before it can take any of your pay. For consumer credit debts like credit cards, Vermont protects the greater of 85% of your take-home pay or $290 a week, which is 40 times the federal minimum wage (12 V.S.A. § 3170). So a creditor can take at most 15%, and nothing if you take home $290 a week or less.
If you got help from the Department for Children and Families or the Department of Vermont Health Access in the two months before the hearing, none of your wages can be garnished. You have to raise this at the hearing, so bring proof.
Child support and taxes follow separate rules. Social Security and other federal benefits stay protected from ordinary creditors, even after they're deposited in your bank account.
Ways out of debt in Vermont
- Nonprofit credit counseling can combine your card payments into one debt management plan with lower rates. Vermont requires debt adjusters to be licensed by the Department of Financial Regulation, so check before you sign up.
- Planning to apply for a consolidation loan? Our debt-to-income calculator shows the number lenders look at first.
- Debt settlement companies can't charge you a fee until they've actually settled a debt, under federal rules. Forgiven amounts can count as taxable income.
- Bankruptcy: Vermont lets you choose between its own exemption list and the federal one. The state's homestead exemption protects up to $125,000 of equity in your home. A bankruptcy attorney can tell you which list keeps more of what you own.
Where to get help or complain
- Vermont Attorney General's Consumer Assistance Program takes complaints online, or call 800-649-2424.
- Vermont Legal Help has free guides on debt collection and lawsuits, and its helpline at 1-800-889-2047 can connect you with free legal help.
- Consumer Financial Protection Bureau takes complaints about collectors and lenders nationwide.
General information about Vermont law, not legal advice. Checked November 2026.