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Going to Court
In Colorado, most creditors must obtain a court order to garnish a debtor’s wages. First, the creditor must sue the debtor in a Colorado court. If the creditor wins and obtains a money judgment, it can try to collect it. If the debtor still refuses to pay, it can move to a court to order, and garnishment against the debtor’s wages.
If you are a Colorado resident with a past- due debt, and your creditor has reasons to believe you will not repay your debt, they may sue you in a Colorado courthouse to obtain a judgment against you. Colorado allows creditors with creditable judgments to garnish your wages. This means they withhold an amount from your employer in order to get repaid. However, there are many restrictions on wage garnishment. Some limitations on garnishing pay in Colorado are:
Colorado follows the federal law concerning the amount a judgment creditor can take from your earnings. If you earn less than 30 times the current federal earnings, your wages are exempt from garnishment. If you earn more than this amount, the creditor is allow to take up to 25 percent of your earnings. If the garnishment is for unpaid child support, up to 60 percent can be garnished.
Colorado law enforces a time limit on creditors; this limits how long they are able to garnish your wages. Most judgment debts, including credit cards and loans made under written contracts, are subject to a six-year garnishment limitation if the judgment is obtained from a county court, and 20 years if obtained from a district court. However, if the creditor is still not satisfied they can take you to court again to try to get an issued renewal. This can give the creditor another two or three years.
On top of the debt you owe, creditors are able to add up to eight percent interest in the state of Colorado. They are also able to take the interest you owe out of your wages.
If you find your self in finical trouble, the smartest thing for you to do is to hire the correct bankruptcy attorney. Choosing the right one can save you. Contact us today with any questions, and find out for your self what makes Taggart Law office the right choice.