State Debt Laws
Colorado Debt Collection Laws
Garnishment limits, exemptions, and consumer protections specific to Colorado
Colorado (CO) - At a Glance
| State Consumer Protection Law | Colorado Fair Debt Collection Practices Act (CFDCPA) |
| Source | C.R.S. ยง 12-14-101 et seq. |
| Covers Original Creditors? | No - third-party collectors only |
| Max Wage Garnishment | 25% of disposable earnings (federal minimum; may be lower) |
| Bank Levy Exemption | $2,000 in checking/savings |
| Homestead Exemption | $250,000 |
Key Protections in Colorado
- State law mirrors FDCPA with additional protections
- Debt collectors must be licensed in Colorado
- Cannot use unfair or unconscionable means to collect
- High homestead exemption protects home equity
Wage Garnishment in Colorado
After a court judgment, creditors in Colorado can garnish up to 25% of your disposable earnings (earnings after legally required deductions). This is the federal cap - Colorado follows federal law on this limit.
Exempt from garnishment: Federal benefits (Social Security, SSI, VA benefits) cannot be garnished by private creditors regardless of state law.
File a Complaint in Colorado
If a debt collector violates the FDCPA or Colorado Fair Debt Collection Practices Act (CFDCPA):
- File with the Colorado Attorney General
- File with the CFPB
- Consult a consumer attorney (FDCPA violations = attorney fees paid by collector)