What Is the Limit for Garnishing Pay in Colorado?

If you are a Colorado resident with a past-due debt, and your creditor does not believe that you will voluntarily repay your debt, your creditor may sue you in a Colorado court to obtain a judgment against you. Colorado permits creditors with valid judgments to garnish your wages, which means that they may force your employer to withhold part of your wages for repayment of your debt. However, Colorado law places several restrictions on wage garnishment.

Money Limitations

Colorado follows federal law concerning the amount a judgment creditor may take from your earnings. If you earn less than 30 times the current federal minimum wage after taxes per week, your wages are exempt from garnishment. If you earn more than this amount after taxes, your creditor may take up to 25 percent of your earnings. However, if the garnishment is for unpaid child support, up to 60 percent of your post-tax wages may be subject to garnishment.

Time Limitations

Colorado law imposes a time limit on the validity of judgments, which affects how long a creditor can 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 you have not satisfied a money judgment at the end of the valid judgment period, the creditor may apply to the Colorado court that issued the judgment for a renewal. This gives the creditor another two or three years, depending on the type of debt, to continue garnishing your wages.

Exempt Income

Certain types of income are exempt from garnishment in Colorado. Under federal law, Social Security income is exempt unless the judgment debt is for unpaid taxes, alimony or child support. Colorado protects disability benefits up to $200 per month, life insurance payments, unemployment benefits and worker's compensation payments from garnishment. Pensions paid to state workers, teachers and firefighters, as well as some IRAs and retirement plan payments, are also exempt.

Interest

Colorado law allows creditors to add interest to judgment debt -- the interest can be garnished from your wages in addition to the debt balance you owe. In most cases, Colorado limits judgment interest to 8 percent per year. However, if the garnishment is for a contract debt, the judgment creditor may add interest at the contract rate.