What to Do After a Money Judgment

This guide is for people who have had a money judgment entered against them. A judgment means a creditor won a lawsuit and can now try to collect. But you still have rights. This guide explains:

• What it means to be collection proof
• How to challenge a judgment
• How to claim exemptions from garnishment

What happens after a judgment?

Once a judgment is entered, the creditor can collect the debt by:

• Taking part of your paycheck. This is called wage garnishment.
• Taking money from your bank accounts.
• Placing liens on property. 

This can feel stressful, but Colorado law protects some income and property from being taken.

What is collection proof?

You may be collection proof if you don’t have income or assets creditors can legally seize. You are likely collection proof if:

• You have no wages or property that can be garnished.
• Your only income comes from protected sources, like:
  • Social Security
  • Disability benefits
  • Unemployment
  • Public assistance
  • Retirement pensions

For more detailed information, see our guide on What It Means to Be Collection Proof.

How do I undo a judgment?

If the judgment was entered by mistake or without proper notice, you may be able to ask the court to undo it (this is called vacate). If you disagree with the judgment and participated in the case, you can only appeal the judgment. An appeal must be done within a very short time of the judgment being entered (as little as 14 days in county court).

Reasons you may ask to vacate a judgment:

• You were not properly served with the lawsuit papers.
• The creditor used fraud or misrepresentation.
• You missed deadlines due to mistake or excusable neglect.
• The judgment is void (for example, the court lacked authority).

What do I do next?

How do I protect my income? 

Garnishment limits

The amount that can be garnished (taken): 

• 20% of your disposable earnings for that pay period

  OR

• The amount by which disposable earnings for that week exceed 40 times Colorado’s minimum wage

The employer must use the formula that results in the most money left for the employee. See our guide on Wage Garnishment for more information.

Income that cannot be garnished by most judgment creditors includes:

• Social Security benefits
• Disability payments
• Unemployment benefits
• Public assistance
• Retirement pensions

If your employer calculates the garnishment incorrectly or you (the debtor) would not have enough income to pay your expenses: 

You (the debtor) may file a written objection to the proposed wage garnishment if the garnishment was calculated incorrectly. 

• Within 7 days of the incorrect garnishment, you (the employee/debtor) must try to work it out with your employer.
• If it is not corrected, you (the employee/debtor) must file a claim of exemption with the court within 14 days of the incorrect garnishment.

You (the debtor) can also file a claim of exemption if you would not have sufficient income to pay actual and necessary living expenses.

How do I claim an exemption?

See our guide on Wage Garnishment for more information.

How do I protect my bank accounts?

Bank account exemptions

Automatically protected: 

• Federal law protects the last 60 days of exempt federal benefits such as Social Security that are directly deposited into a bank account (only the deposit account is automatically protected).

The debtor must file a claim of exemption for most bank garnishments. The writ of garnishment should have the full list of exemptions, but common exemptions are: 

• Social Security benefits (amounts over the last 60 days of deposit and/or funds not directly deposited)
• Child support or maintenance 
• Public assistance funds
• Disability and pension payments
• Exempt wages
• The first $2,500 of cumulative deposits

Tips to protect exempt money:

• Keep exempt funds in a separate account, if possible.
• File a claim of exemption with the court within 14 days of notice of the writ.
  • Clearly list the exempt money and/or explain why the funds in the bank account(s) are exempt.     
  • The 14 days runs from when the judgment creditor serves the notice on the debtor.    
  • Service could be personal service, by mail, or limited circumstances by email.    
    • The claim of exemption can be filed before service, so it should be filed immediately when someone finds out their account is frozen. 
• Attach proof, such as bank statements showing exempt deposits.

What if my account is frozen?

See our guide on Bank Account Garnishments for more information.

What is important to remember when dealing with a money judgment?

• Keep records: Save everything—judgment papers, payment receipts, notices, and correspondence.
• Review statements regularly: Watch your bank and pay statements for garnishments so you can respond fast.
• Act quickly: File motions and exemptions as soon as you get notices.
• Use court resources: Colorado courts provide forms and instructions. Visit the Colorado Judicial Branch website.
  • Use court-provided forms. They are designed for people without lawyers.
• Clearly describe which funds are exempt and attach proof.
• Be organized and polite in court. This helps judges understand your situation.

What questions should I ask myself?

• Am I collection proof?
• Was I properly notified of the lawsuit?
• Is the creditor garnishing protected income or funds?
• Do I have documents showing my income is exempt?

Need more help?

If you are low-income, a senior, or a veteran, you may qualify for free legal help from Colorado Legal Services (CLS). To apply or ask if you might qualify, go to the CLS website and find the office that serves your area. If you call or visit, CLS can help you in your native language.

You can get help from the courts. Every judicial district has staff called “Sherlocks” to help people with their legal questions. To find the Sherlock in your county, visit the Judicial Department’s Sherlock webpage.