⚖️ How to Collect a Judgment in Colorado: Complete Guide

Everything creditors, attorneys, and judgment holders need to know about enforcing and collecting civil judgments in Colorado.

⚖️ Colorado Judgment Collection Overview

Winning a civil judgment in Colorado is only the first step. The court does not automatically collect the money owed to you — that responsibility falls squarely on the judgment creditor. If the debtor does not voluntarily pay, you will need to actively pursue enforcement using the legal tools available under Colorado law.

Colorado provides judgment creditors with a set of collection remedies, including wage garnishment, property liens, bank account levies, and personal property execution. However, the state also recognizes certain debtor protections and exemptions that limit how much and what types of assets can be seized.

In Colorado, a judgment remains enforceable for 20 years from the date of entry. During that time, post-judgment interest accrues at a rate of 8% per year (simple interest), which can significantly increase the total amount owed.

This guide covers every aspect of judgment collection in Colorado, from the statutes that govern enforcement to practical strategies for locating debtors and their assets.

📜 Key Colorado Statutes and Laws

Colorado judgment collection is governed by several statutes. Understanding these laws helps you identify the correct procedures and avoid costly errors.

🔹 Federal Laws That Also Apply

The Consumer Credit Protection Act (CCPA), 15 U.S.C. § 1673, caps wage garnishment at the lesser of 25% of disposable earnings or the amount by which weekly disposable earnings exceed 30 times the federal minimum wage. Colorado may provide additional protections beyond this federal floor.

⏱️ Judgment Enforcement Period and Renewal

Colorado grants judgment creditors a 20-year enforcement period.

🔹 Renewing a Colorado Judgment

Colorado judgment liens must be renewed every 6 years by re-recording the transcript of judgment with the County Clerk and Recorder. The underlying judgment itself has a 20-year enforcement period, but liens lapse after 6 years if not renewed. This means you must be diligent about lien renewals even though the judgment itself remains valid for 20 years.

To learn more, visit our guide on judgment renewal procedures.

💰 Post-Judgment Interest Rates

Under C.R.S. § 5-12-102, the post-judgment interest rate in Colorado is 8% per year (simple interest).

🔹 How Interest Grows Over Time

Original Judgment	After 5 Years	After 10 Years	After 15 Years	After 20 Years
$5,000	$7,000	$9,000	$11,000	$13,000
$10,000	$14,000	$18,000	$22,000	$26,000
$25,000	$35,000	$45,000	$55,000	$65,000
$50,000	$70,000	$90,000	$110,000	$130,000
$100,000	$140,000	$180,000	$220,000	$260,000

🔧 Collection Methods Available in Colorado

Colorado law provides several methods for enforcing a judgment. The most effective approach often combines multiple methods simultaneously.

Collection Method	Best For	Key Statute
💼 Wage Garnishment	Employed debtors with steady income	C.R.S. § 13-54-101
🏦 Bank Levy	Debtors with known bank accounts	C.R.S. § 13-54-101
🏠 Real Property Lien	Debtors who own real estate	C.R.S. § 13-52-102
🚗 Personal Property Execution	Debtors with vehicles, equipment	C.R.S. § 13-52-101
📋 Post-Judgment Discovery	Finding hidden assets and income	C.R.C.P. 69
🔄 Judgment Domestication	Out-of-state judgments	C.R.S. § 13-53-101

💼 Wage Garnishment in Colorado

Wage garnishment is one of the most effective collection tools available to Colorado judgment creditors. Once a garnishment order is in place, the debtor’s employer is legally required to withhold a portion of the debtor’s wages each pay period and remit those funds to the judgment creditor.

🔹 How Much Can Be Garnished

Colorado follows the federal CCPA limits. The maximum garnishment is the lesser of 25% of disposable earnings or the amount by which weekly disposable earnings exceed 30 times the federal minimum wage. Colorado also has a minimum earnings floor — if the debtor’s disposable earnings are at or below 40 times the federal minimum wage per week, no garnishment is permitted.

“Disposable earnings” means the amount remaining after legally required deductions such as federal and state taxes, Social Security, and Medicare. Voluntary deductions like 401(k) contributions, health insurance premiums, and union dues are generally not subtracted when calculating disposable earnings.

🔹 Filing for Wage Garnishment

🏦 Bank Levies and Account Seizures

A bank levy allows a judgment creditor to seize funds directly from the debtor’s bank accounts. This is often the fastest way to collect a significant portion of a judgment.

🔹 Process for a Bank Levy in Colorado

Colorado bank levies are conducted through a writ of garnishment served on the financial institution. The bank must freeze the debtor’s accounts up to the judgment amount plus costs. The debtor has 14 days to file a traversal or claim of exemption. If no valid objection is raised, the bank releases the funds to the creditor.

🔹 Exemptions for Bank Accounts

Certain funds may be exempt under both federal and Colorado law:

✅ Social Security benefits (42 U.S.C. § 407)

✅ Veterans’ benefits

✅ SSI and public assistance

✅ Workers’ compensation benefits

✅ Certain retirement and pension funds

🏠 Property Liens and Real Estate

Recording a judgment lien against the debtor’s real property is a powerful long-term strategy.

🔹 How Judgment Liens Work in Colorado

To create a judgment lien on real property in Colorado, the creditor must file a transcript of judgment with the County Clerk and Recorder in each county where the debtor owns property. The lien attaches to all real property owned by the debtor in that county and any property subsequently acquired during the lien period.

🔹 Forced Sale of Real Property

If the debtor owns property with equity above the homestead exemption, the creditor can request execution directing the sale at public auction. A real property asset search can provide detailed property information.

🔹 Redemption Rights

Colorado provides a 75-day redemption period for agricultural property sold at execution sale. For most other types of property, there is no statutory redemption period after a sheriff’s sale, making execution sales in Colorado more final and attractive to purchasers.

🚗 Personal Property Execution

Judgment creditors can execute on vehicles, equipment, jewelry, and other tangible assets.

✅ Automobiles, trucks, and recreational vehicles (subject to exemptions)

✅ Equipment, tools, and machinery

✅ Household goods and furnishings (subject to exemptions)

✅ Business inventory and receivables

✅ Investments, stocks, and bonds

A vehicle asset search can identify vehicles registered to the debtor.

🛡️ Colorado Debtor Exemptions

Exemption Category	Protection Amount	Statute
🏠 Homestead	$250,000 ($350,000 if elderly/disabled)	C.R.S. § 13-52-102
👤 Personal Property	$7,500 total (various categories)	C.R.S. § 13-54-102
💼 Wages	25% of disposable earnings	Federal + state law
🪖 Military Benefits	100% exempt	Federal Law
🏥 Workers’ Comp	100% exempt	C.R.S. § 8-42-124
👴 Public Pensions	100% exempt	C.R.S. § 24-51-212

📋 Post-Judgment Discovery and Debtor Exams

Post-judgment discovery under C.R.C.P. 69 allows you to compel the debtor to disclose detailed financial information under oath.

🔹 What You Can Discover

✅ Employment details, income, and employer address

✅ All bank accounts, institutions, and balances

✅ Real property owned in Colorado and any other state

✅ Vehicle titles and registrations

✅ Business ownership interests

✅ Investment and retirement accounts

✅ Recent asset transfers (potential signs of hidden assets)

Learn more in our guide on post-judgment discovery.

🔍 Locating the Debtor and Their Assets

The biggest obstacle in Colorado judgment collection is often finding the debtor and identifying what they own.

🔹 Why Skip Tracing Matters

Professional skip tracing services locate debtors who have moved or are avoiding collection. Our Colorado skip tracing services leverage records from all 64 Colorado counties.

🔹 Asset Discovery Services

✅ Real property holdings

✅ Vehicle registrations

✅ Business interests

✅ Hidden asset investigations

🌟 What Makes Colorado Unique for Judgment Collection

Colorado’s judgment collection framework has several noteworthy characteristics:

✅ Long enforcement period — At 20 years, Colorado provides one of the longer enforcement windows in the western United States, giving creditors substantial time to collect.

✅ 6-year lien renewal requirement — While the judgment lasts 20 years, judgment liens must be renewed every 6 years. Creditors must track and renew liens separately from the underlying judgment, or risk losing their secured position on the debtor’s real property.

✅ Continuing writ of garnishment — Colorado’s 180-day continuing writ reduces administrative burden for ongoing wage garnishment, though it does require periodic renewal.

✅ Recently increased homestead exemption — The $250,000 exemption (up from much lower historical amounts) significantly impacts collection against homeowners, particularly in lower-cost areas of the state.

✅ Limited redemption for non-agricultural property — Unlike many states that provide 6 to 12 months of redemption rights, Colorado’s lack of a redemption period for most property makes sheriff’s sales more appealing to buyers, potentially yielding higher sale prices.

✅ Earnings floor protection — Colorado’s rule that no garnishment is allowed if disposable earnings are at or below 40 times the federal minimum wage per week provides stronger protection for low-income debtors than many other states.

🔄 Out-of-State Judgment Domestication

If your judgment was obtained in another state and the debtor is now in Colorado, you must domesticate the judgment before enforcing it.

Colorado has adopted the Uniform Enforcement of Foreign Judgments Act (UEFJA). File a certified copy of the foreign judgment with the clerk of the district court in the county where enforcement is sought, along with an affidavit with the debtor’s and creditor’s last known addresses. Once filed, the judgment has the same effect as a Colorado judgment.

See our guide on how to domesticate a judgment.

🏛️ Small Claims Judgment Enforcement

Judgments from Colorado’s County Court (Small Claims Division) (under $7,500) are enforced using the same methods as any other civil judgment. See our guide on enforcing small claims judgments.

💡 Practical Tips for Colorado Judgment Creditors

🔹 Act Quickly After Judgment

File garnishments and liens within the first 30 days to maximize recovery before the debtor can move assets.

🔹 Use Multiple Methods Simultaneously

Combine wage garnishment, property liens, and bank levies for maximum pressure.

🔹 Investigate Before Executing

Invest in a professional asset search to target the most productive assets first.

🔹 Watch for Fraudulent Transfers

Colorado has adopted the Uniform Voidable Transactions Act (C.R.S. § 38-8-101 et seq.), allowing creditors to void fraudulent transfers made by the debtor to avoid collection. Both actual fraud (intent to hinder) and constructive fraud (transfers for less than fair value while insolvent) can be challenged. Identify suspicious transfers and petition the court to reverse them.

🔹 Consider Bankruptcy Risk

Aggressive collection can push debtors into bankruptcy. Sometimes a negotiated settlement produces a better outcome.

🔄 Colorado’s 6-Year Lien Renewal Requirement

One of the most important and frequently overlooked aspects of Colorado judgment collection is the 6-year judgment lien renewal requirement. While the judgment itself is enforceable for 20 years, the lien on real property expires after just 6 years unless renewed.

🔹 Why This Matters

If you record a judgment lien against the debtor’s real property but fail to renew it before the 6-year mark, the lien lapses and you lose your secured position. This means the debtor could sell or refinance the property without satisfying your judgment. Meanwhile, other creditors who properly renewed their liens would maintain priority ahead of your claim.

🔹 How to Renew

To renew a Colorado judgment lien, you must re-record a transcript of judgment with the County Clerk and Recorder in each county where the lien was originally filed. The renewal must be done before the 6-year expiration — there is no grace period. Set calendar reminders at least 6 months before each lien renewal deadline.

💲 Collection Costs and Fees in Colorado

Most enforcement costs in Colorado are recoverable from the debtor as part of the judgment.

✅ Transcript of Judgment recording fee: $13 to $20 per page per county

✅ Writ of Execution: $50 to $75 filing fee

✅ Writ of Garnishment: $36 to $97 depending on the court

✅ Sheriff’s fees: Vary by county for levy and sale services

✅ Lien renewal: Same as original recording fee, required every 6 years

📅 Typical Colorado Judgment Collection Timeline

✅ Judgment Satisfaction and Recording in Colorado

Once the judgment is fully paid, Colorado law requires the judgment creditor to file a satisfaction of judgment with the court that issued the judgment. Additionally, if transcripts of judgment were recorded in any Colorado counties, the creditor must file a release of judgment lien with the County Clerk and Recorder in each county.

🔹 Filing the Satisfaction

Under Colorado law, the creditor must file the satisfaction within a reasonable time after receiving full payment. Failure to do so can result in the creditor being liable for actual damages caused by the unsatisfied judgment, including any title insurance issues, loan denials, or credit problems the debtor experiences due to the outstanding lien.

🔹 Negotiated Settlements

Colorado’s 20-year enforcement period gives creditors significant leverage in settlement negotiations. The combination of 8% annual interest and a long enforcement window means the debtor faces an ever-growing obligation. A $10,000 judgment grows to $18,000 after 10 years and $26,000 after 20 years. This financial pressure often motivates debtors to negotiate settlements, even at a discount, to resolve the obligation. When settling, always obtain payment before filing the satisfaction and document the settlement terms in a written agreement signed by both parties.

🔹 Colorado’s Mountain Resort Communities

Colorado’s resort communities (Aspen, Vail, Breckenridge, Telluride, Steamboat Springs) present unique opportunities for judgment collection. Debtors who own vacation or investment properties in resort areas often have significant equity above the homestead exemption, since the exemption only applies to the primary residence. Vacation homes, rental properties, and investment real estate are fully exposed to judgment liens and forced sale. A statewide property search covering all 64 Colorado counties can reveal these high-value non-homestead properties.

🏭 Special Considerations: Cannabis Industry Judgments in Colorado

Colorado was one of the first states to legalize recreational cannabis, and the industry generates billions in revenue. Collecting judgments against cannabis industry participants presents unique challenges because federal banking restrictions often limit these businesses’ use of traditional financial institutions.

🔹 Banking Challenges

Many cannabis businesses operate primarily in cash due to federal banking restrictions. This can make traditional bank levies less effective, but it also means these businesses may have significant cash on hand. Colorado law allows levy on cash and cash equivalents at the debtor’s place of business through a writ of execution directed to the sheriff.

🔹 Business Asset Execution

Cannabis industry debtors may have substantial tangible assets including growing equipment, processing equipment, inventory, and real property (grow facilities, dispensaries). A business asset search can identify these assets and their locations throughout Colorado.

🔹 Licensing Considerations

Cannabis businesses in Colorado hold valuable state licenses. While the licenses themselves may not be directly executable (they are issued by the state and are not transferable property in the traditional sense), the existence of a valuable license can motivate the debtor to settle rather than risk losing their business through aggressive enforcement actions.

📋 Understanding Debtor Rights in Colorado

Colorado provides several important protections for judgment debtors that creditors must be aware of and respect throughout the collection process.

🔹 Traversal Hearings

When a garnishment is served on a bank or employer, the debtor has the right to file a traversal — a formal objection claiming that the garnished funds or wages are exempt. The court then holds a traversal hearing where both sides present evidence. Common traversal grounds include claiming head-of-household status, arguing that bank funds are derived from exempt sources (Social Security, disability), or challenging the amount claimed on the writ.

🔹 Exempt Earnings Protection

Colorado protects debtors whose disposable earnings fall at or below 40 times the federal minimum wage per week from any garnishment whatsoever. This “earnings floor” means that very low-income debtors are completely shielded from wage garnishment. For debtors above this threshold, the standard federal limits (lesser of 25% of disposable earnings or amounts exceeding 30 times minimum wage) apply.

🔹 Voluntary Payment Plans

Colorado courts can facilitate voluntary payment plans between the parties. If the debtor demonstrates a willingness to pay but lacks the ability to satisfy the judgment immediately, a structured payment arrangement — documented in a court order — can provide the creditor with regular payments while avoiding the costs of aggressive enforcement. Payment plans also reduce the risk of the debtor filing bankruptcy in response to collection pressure.

🔍 Investigating Fraudulent Transfers in Colorado

When a debtor in Colorado suddenly transfers assets to family members, places property in trusts, or moves money into accounts held by relatives, these transfers may be voidable under Colorado’s Uniform Voidable Transactions Act (C.R.S. § 38-8-101 et seq.).

🔹 Red Flags for Fraudulent Transfers

Watch for these common signs that a debtor may be hiding assets:

✅ Transferring real property to a spouse, child, or other family member shortly before or after judgment

✅ Creating new LLCs or trusts and moving assets into them

✅ Selling assets for significantly less than market value

✅ Suddenly claiming to be unemployed or underemployed while maintaining an affluent lifestyle

✅ Moving bank account balances to accounts held by family members or business entities

🔹 Challenging Fraudulent Transfers

Colorado allows creditors to challenge both actual fraud (transfers made with intent to hinder, delay, or defraud creditors) and constructive fraud (transfers made without receiving reasonably equivalent value while the debtor was insolvent or became insolvent as a result). The statute of limitations for challenging a fraudulent transfer is typically 4 years from the date of the transfer, or one year from when the transfer was or could reasonably have been discovered.

🪖 Military Debtor Considerations in Colorado

Colorado is home to several major military installations, including the U.S. Air Force Academy, Fort Carson, Peterson Space Force Base, Buckley Space Force Base, and Schriever Space Force Base. A significant portion of Colorado’s population consists of active-duty military members, veterans, and military families. Collecting judgments against military debtors requires special awareness of federal protections.

🔹 Servicemembers Civil Relief Act (SCRA)

The federal Servicemembers Civil Relief Act (SCRA) provides important protections for active-duty military members that can affect judgment collection. Key provisions include:

✅ Interest rate cap — Debts incurred before active duty may be capped at 6% interest during service

✅ Stay of proceedings — Active-duty servicemembers can request stays (postponements) of civil proceedings, including enforcement actions

✅ Default judgment protections — Special notice requirements apply before default judgments can be entered against servicemembers

✅ Property protections — Additional restrictions on seizure of certain property owned by servicemembers

Before pursuing aggressive collection against a debtor in Colorado, verify their military status through the SCRA website to ensure compliance with federal law. Violating SCRA protections can result in the enforcement action being voided and potential liability for the creditor.

❓ Frequently Asked Questions

🔹 How long do I have to collect a judgment in Colorado?

You have 20 years from the date the judgment is entered. Consult the renewal provisions above for Colorado-specific procedures.

🔹 What is the post-judgment interest rate in Colorado?

The rate is 8% per year (simple interest), under C.R.S. § 5-12-102.

🔹 Can I garnish wages in Colorado?

Yes. Colorado follows the federal CCPA limits. The maximum garnishment is the lesser of 25% of disposable earnings or the amount by which weekly disposable earnings exceed 30 times the federal minimum wage. Colorado also has a minimum earnings floor — if the debtor’s disposable earnings are at or below 40 times the federal minimum wage per week, no garnishment is permitted.

🔹 What is the homestead exemption in Colorado?

Colorado’s homestead exemption was significantly increased in recent years to $250,000, or $350,000 for elderly (60+) or disabled residents. This covers the debtor’s primary residence and is one of the more generous homestead protections in the mountain west region.

🔹 Can I collect on a judgment from another state?

Yes. Domesticate the judgment in Colorado first.

🔹 What if the debtor has moved?

Colorado skip tracing can locate debtors who have moved.

🔹 What happens if the debtor files for bankruptcy?

A bankruptcy filing triggers an automatic stay halting all collection. Learn more about investigating debtors in bankruptcy.

📞 Get Professional Help

Whether you need to locate a judgment debtor, discover hidden assets, or identify a debtor’s employer for wage garnishment, professional services dramatically improve recovery rates.

Services supporting Colorado judgment collection:

✅ Skip Tracing Services — Locate debtors who have moved or are avoiding collection

✅ Asset Search Services — Identify real property, vehicles, businesses, and financial assets

✅ Employer Locate — Find the debtor’s current employer for wage garnishment

✅ Judgment Debtor Location — Specialized searches for disappeared debtors

✅ Judgment Recovery Services — Comprehensive judgment collection support

This guide was last updated in . Consult with a licensed Colorado attorney for advice specific to your situation.