RICHMOND, Va. (WRIC) -- Virginia received a "D" grade in what its laws do or don't do in protecting families from having their income and property seized by debt collectors, according to a report from a national nonprofit. In a Dec. 23 press release, the Virginia Poverty Law Center highlighted a recent report from the National Consumer Law Center (NCLC), claiming that the Commonwealth is leaving its working families "high and dry" with debt collectors amid already-present economic struggles. The 2024 version of this report, titled "No Fresh Start: Will States Protect Families from Debt Collectors Seizing Wages and Bank Balances?" was published by the NCLC on Wednesday, Dec. 18. Each state's rating relates to protections families are afforded through state exemption laws. According to the NCLC, these laws protect income and property from being seized by creditors, debt buyers and debt collectors. Local Richmond business aims to help moms make it through the holiday season, day-to-day tasks "These laws are designed to protect consumers and their families from poverty and to preserve their ability to be productive members of society and achieve financial rehabilitation," the NCLC said in the report. "These protections are critically important as families are reeling from the impact of historically high inflation on their budgets, particularly rent and food." Of all 50 states and the handful of territories that were ranked, none received the highest ranking, that being "A." To do that, a state would need to meet five standards set out by the NCLC, which are as follows: "Preventing creditors from seizing so much of the debtor’s wages that the debtor is pushed below a living wage," "Allowing the debtor to keep a used car of at least close to average value," "Preserving the family’s home — at least a median-value home," "Preserving a basic amount in a bank account so that the debtor’s funds to pay essential costs such as rent, utilities and commuting expenses are not cleaned out," "Preventing seizure and sale of the debtor’s necessary household goods." Five states -- those being Arizona, California, Massachusetts, New Mexico and Texas -- as well as Puerto Rico received "B" grades. 14 others and the District of Columbia received a "C," while Virginia was among the 23 states and 1 territory that received a "D." US Senate passes bipartisan Social Security bill, eliminating decades-old provisions Notably, Virginia was ranked "C" in 2023, meaning this year reflects a worsening of these protections. The eight states with the worst rating of "F" are Georgia, Kentucky, Michigan, New Jersey, Utah, Indiana, Missouri and Wyoming. The Virginia Poverty Law Center said Virginia needs to improve its protections on the first and fourth items listed above -- meaning it fails to protect enough of a debtor's wages to allow them to remain at a living wage and to still afford necessary expenses. According to the NCLC report, Virginia protects a total of $480 per week of a minimum-wage debtor's wages from seizure. Chesterfield preschoolers donate canned goods bought with own money In its release, the Virginia Poverty Law Center said it believes two pieces of legislation that will be introduced during the 2025 General Assembly session could help improve these protections. “These bills are about fairness, stability, and giving families a fighting chance,” said Jay Speer, executive director of the Virginia Poverty Law Center. “No family should be left without resources to survive and no worker should lose their entire paycheck." The first one, sponsored by Del. Phil Hernandez (D-Norfolk), would ensure that a minimum amount of funds in any family's bank account is automatically protected from seizure when they face a debt lawsuit or bankruptcy, according to the release. “Families shouldn’t have to make the impossible choice of feeding their children or paying off a debt,” Hernandez said in the release. “This necessary bill will create new protections to safeguard funds that are needed for the necessities of life and prevent families from falling into a vicious cycle of poverty.” Over a dozen Chesterfield school zones are getting speed cameras The second one, sponsored by Del. Carrie Coyner (D-Chesterfield), would end the practice of using tax liens to take all of a debtor's wages. According to the release, Virginia is the only U.S. state that actively uses such 100% tax liens. “Garnishing 100% of someone’s wages is not just impractical -- it’s inhumane,” Coyner said in the release. “This bill allows Virginians to pay their debts while maintaining their dignity and basic livelihood.”