In Vermont—from the innovation hubs of Burlington and South Burlington to the manufacturing centers of Rutland and the healthcare corridors of Montpelier—business is conducted with a unique blend of independence and community trust. However, as of January 1, 2026, the “old school” collection playbook has been burned. With the full implementation of Act 21, medical debt reporting is now strictly prohibited, and new interest rate caps (capped at 1.5% to 4%) have redefined the recovery landscape. You don’t just need a collector; you need a Vermont-compliant strategist who can recover your revenue through sophisticated mediation and judicial bank levies while navigating some of the most protective consumer laws in New England. Nexa is fully compliant with the Vermont Consumer Protection Act.
Nexa provides 100% reputation-safe, equipped with all 50-state collections license, offering free credit reporting, free litigation/bankruptcy scrubs, and zero onboarding fees. Secure – SOC 2 Type II & HIPAA compliant.
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The Vermont Legal Landscape
Vermont offers a 6-year window for recovery, but its “Consumer Shield” is built on high protected floors and strict reporting bans.
| Debt Category | Statute of Limitations | Vermont Statute (V.S.A.) |
| Written & Oral Contracts | 6 Years | 12 V.S.A. § 511 |
| Medical Debt | 6 Years | Act 21 (2026 Reporting Ban) |
| Consumer Credit Debt | 6 Years | 15% Garnishment Cap |
| Mechanic’s Liens | 180 Days | 9 V.S.A. § 1921 |
| Judgments | 8 Years (Renewable) | 12 V.S.A. § 506 |
Critical Vermont Rules for 2026:
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The 2026 Medical Reporting Ban (Act 21): As of July 1, 2025, reporting medical debt to credit bureaus is illegal in Vermont. Furthermore, the state has appropriated $1 million to erase qualifying debt for residents under 400% of the Federal Poverty Level. Nexa uses judicial remedies to maintain leverage where credit threats are now a legal liability.
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The 15% Consumer Cap: For debts arising from consumer credit transactions, Vermont law (12 V.S.A. § 3170) protects 85% of a debtor’s weekly disposable earnings. Nexa targets high-asset recovery to ensure your ROI remains high despite these narrow garnishment windows.
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The 2026 Wage Floor: Effective January 1, 2026, the Vermont minimum wage is $14.42/hr. You cannot garnish wages unless a debtor earns more than $432.60/week (30x min wage). We verify income floors early to save you unnecessary legal costs.
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The 180-Day Construction Cliff: Contractors and trades have 180 days to record a lien and an additional 180 days to perfect it via lawsuit. Nexa triggers “Step 1” demand mediation immediately to secure payment before these expensive legal deadlines.
Cost-Effectiveness: The Nexa Advantage
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Fixed-Fee Recovery ($15/account): Ideal for early-stage B2B and high-volume debt. Debtors pay 100% directly to you.
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Contingency Service (20%–40%): Performance-based recovery. No Recovery, No Fee.
Industries We Serve in Vermont
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Captive Insurance & Finance: Specialized B2B recovery for Vermont’s world-leading captive insurance sector. We handle complex premium recovery and inter-company disputes with professional diplomacy.
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Healthcare, Dental & Medical: 100% HIPAA-compliant. We manage the Act 21 reporting ban, recovering patient balances for providers in the UVM Health Network footprint while staying within new interest rate caps.
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Manufacturing & Aerospace: B2B recovery for high-tech and industrial suppliers. We handle high-value freight brokerage and warehousing disputes, utilizing the 6-year statute to secure payments.
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Colleges & Universities: From UVM to Middlebury, we handle tuition recovery with a student-first mediation approach that preserves your institutional reputation.
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K-12 Private & Charter Schools: Diplomatic recovery for unpaid enrollment fees, tailored for Vermont’s independent school community.
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Accountants & CPA Firms: Recovery of professional service fees. We understand the Vermont tax cycle and preserve client trust through mediation.
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Construction & Trades: Revenue recovery for HVAC and general contractors (Experts in 9 V.S.A. Mechanic’s Liens and 180-day filings).
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B2B Commercial, Restoration & Waste Management: High-speed recovery for service providers in Burlington and Rutland who need cash flow restored immediately.
Recent Vermont Recovery Results
Case 1: Burlington-Area Medical Group (Medical)
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The Problem: $110,000 in aging patient debt. The clinic was paralyzed by the 2026 ban on medical credit reporting.
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The Result: Nexa implemented a compliant “Judicial Mediation” strategy, recovering $78,000 in 65 days via bank attachments and voluntary settlement plans.
Case 2: Rutland-Based Industrial Supplier (B2B)
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The Problem: A $48,000 unpaid invoice for specialty components. The debtor claimed “supply chain hardship.”
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The Result: Utilizing Vermont’s 6-year written contract statute, Nexa secured a full $48,000 recovery in just 22 days by presenting a litigation-ready pre-legal demand.
Frequently Asked Questions (FAQ)
1. Can I still garnish wages for medical debt in Vermont?
Recent 2025/2026 legislation (S.83) has moved to strictly limit or ban wage garnishment for medical debt. Nexa focuses on Bank Levies and Property Liens, which remain effective legal paths to recovery without the regulatory risk of garnishment.
2. How long do I have to collect a debt in Vermont?
For most written and oral contracts, you have 6 years. Nexa provides a free “Statute Audit” to identify which of your aging accounts are still legally collectable.
3. Does Nexa handle the 2026 medical reporting ban?
Yes. Since reporting is prohibited, we shift the focus to professional mediation and legal judgments, ensuring you still have “teeth” in your recovery process without violating Act 21.