Stopping Wage Garnishment in Colorado

Colorado State laws allow creditors to obtain a "Writ of Garnishment" if they successfully get a judgment against a debtor. Once an employer is served with this writ, they must comply with the law. Consumers that have fallen behind in paying their bills can be sued to collect the outstanding amount. Sometimes they are not even aware that legal action is pending against them. The first sign of trouble comes when they notice that 25 percent of their paycheck is missing. Even the local vet can come after them for unpaid debts. The court may be able to stop wage garnishment if the debtor can prove they weren't given proper legal notice.

Colorado Income Exemptions

In Colorado, up to 25 percent of your disposable income can be garnished. The amount calculated could be challenged if some of the debtor's income comes from a protected source. If any portion of the income is exempt, the debtor should file papers to claim the exemption and recover the money. Colorado follows federal law, which states the following income cannot be garnished:

  • Social Security benefits
  • Retirement plan benefits
  • Public assistance benefits

In addition, workers' compensation, unemployment or disability benefits is exempt from garnishment unless the judgment is for spousal or child support.

Statute of Limitations On Colorado Debts

The law limits the amount of time a creditor can collect on a debt. You can stop wage garnishment if the debt is past the expiration date. The statute of limitations in Colorado is as follows:

  • Open account (credit card debts)—3 years
  • Debts from oral or verbal contract—2 years
  • Promissory notes—6 years
  • Written contract for goods and services—3 years
  • Domestic judgment in County Court—6 years (renewable)
  • Domestic judgment in District Court—20 years (renewable)

Only one creditor can obtain a garnishment at a time. Debtors that are already paying child support through an income withholding order cannot have their wages garnished by another creditor.

When to Get Help From a Colorado Attorney

Consumers that have amassed a large amount of unsecured debts should consider filing for bankruptcy. Not only will this stop wage garnishment immediately, but it can wipe out your debts. Creditors can no longer legally harass you once a bankruptcy petition is filed in federal. Contact an attorney in Colorado that practices this area of law.

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