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Colorado Claim of Exemption

File a Colorado claim of exemption to stop wage garnishment. Learn what pay is exempt, the 20 percent limit, and the 7-day deadline to object to earnings.

Introduction

A Colorado claim of exemption is a form you file with the court to protect some or all of your wages or bank funds from a garnishment. An exemption is money the law says a creditor cannot take. After a creditor wins a money judgment, it can serve a writ of continuing garnishment on your employer and take a share of each paycheck. In Colorado, if the exempt amount is miscalculated you have 7 days from receiving the writ to object to the calculation of your exempt earnings, and you file with the clerk of the court that entered the judgment. Colorado protects more of your pay than federal law, capping wage garnishment at 20 percent of disposable earnings, and shields income like Social Security entirely. Money is withheld while the objection is decided, so act fast. DocDraft prepares a Colorado claim of exemption from your details, and attorney review is available before you file.

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Key Things to Know

  1. 1

    A Colorado claim of exemption is a form you file with the court to protect some or all of your wages or bank funds from garnishment. It tells the court the money is exempt, meaning the law does not let a creditor take it.

  2. 2

    You have 7 days to object to withheld earnings. Under C.R.S. 13-54.5-108 you have 7 days from receiving the writ of continuing garnishment to object to the calculation of exempt earnings, and a claim of exemption for property other than earnings is due within 14 days.

  3. 3

    Colorado protects more of your pay than federal law. Under C.R.S. 13-54-104 a creditor can take at most the lesser of 20 percent of your disposable earnings for the week, or the amount by which those earnings exceed 40 times the state minimum hourly wage.

  4. 4

    Some income is exempt no matter the debt. Social Security, disability, veterans benefits, and many pensions and public benefits are protected, and a claim of exemption is how you free those funds if a bank has frozen them.

  5. 5

    You can ask for a greater exemption for your family. If the standard amount is not enough to support you and your family, C.R.S. 13-54-104 lets you object and ask the court to protect more of your earnings.

  6. 6

    Money is withheld while your objection is decided. Because earnings are held until the court rules, filing your objection or claim quickly limits what you lose.

  7. 7

    Filing gets you a hearing. After you file an objection or claim of exemption, the court sets a hearing no more than 14 days later, where you show the money is protected and the creditor must justify the garnishment.

Key decisions before you file

Before you file a Claim of Exemption in Colorado, a few decisions shape the document: which option to choose and what each one means. The Claim of Exemption guide walks through them.

Open the Claim of Exemption guide

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CLAIM OF EXEMPTION / OBJECTION TO EXEMPT EARNINGS (COLORADO - WAGE GARNISHMENT)

Filed under Colorado Revised Statutes sections 13-54-104 and 13-54.5-108. The judgment debtor claims that some or all of the earnings or funds being garnished are exempt, or that the exempt amount was miscalculated, and asks the court to release the protected money and to stop or reduce the garnishment.

  1. COURT AND CASE Court that entered the judgment: [COURT NAME] Case number: [CASE NUMBER] Writ of continuing garnishment number: [WRIT NUMBER, IF ANY] Date I received the writ: [DATE]

  2. PARTIES Judgment creditor: [CREDITOR NAME] Judgment debtor (you): [DEBTOR NAME] Debtor address: [DEBTOR ADDRESS] Employer or bank served with the writ (garnishee): [GARNISHEE NAME]

  3. EXEMPTION OR OBJECTION CLAIMED I claim an exemption or object for the following reason(s): [ ] The amount of exempt earnings was miscalculated under C.R.S. 13-54.5-108. [ ] The garnishment exceeds the limit in C.R.S. 13-54-104 (the lesser of 20 percent of disposable earnings or the amount above 40 times the state minimum wage). [ ] The standard exempt amount is not enough to support me and my family, so I ask for a greater exemption. [ ] The funds come from an exempt source: [SOCIAL SECURITY / DISABILITY / VETERANS BENEFITS / PENSION / OTHER]. Amount I ask the court to protect: $[AMOUNT CLAIMED EXEMPT]

  4. SOURCE OF THE FUNDS Describe where the money comes from: [DESCRIPTION OF WAGES OR DEPOSITED FUNDS]

  5. FINANCIAL STATEMENT (attach if the court requires one) Monthly take-home pay: $[INCOME] Monthly necessary expenses: $[EXPENSES] Number of people I support: [NUMBER OF DEPENDENTS]

  6. REQUEST FOR HEARING I ask the court to protect the exempt money and to set a hearing on this objection or claim.

  7. VERIFICATION I declare under penalty of perjury under the laws of the State of Colorado that the statements above are true and correct.

Debtor signature: [SIGNATURE] Printed name: [NAME] Date: [DATE]

Note: Colorado provides the Objection to Calculation of Amount of Exempt Earnings (Form 28) and the Claim of Exemption to Writ of Garnishment With Notice (Form 30), filed with the clerk of the court that entered the judgment. For a wage garnishment you have 7 days from receiving the writ to object to the calculation of exempt earnings. Confirm the current form and deadline, or have this reviewed by an attorney, before you file.

Colorado Requirements for Claim of Exemption

Colorado Filing Deadline and Office

File the Colorado claim of exemption with the correct office, the court or the levying officer as Colorado directs, within the state's window after the garnishment is served. Money is usually held until the claim is decided, so filing late can forfeit wages the law would otherwise protect.

Frequently Asked Questions

A Colorado claim of exemption is a form you file with the court to protect wages or bank funds from a garnishment. It tells the court that some or all of the money is exempt, meaning the law does not let a creditor take it. For a wage garnishment you object to the calculation of your exempt earnings within 7 days of receiving the writ, filing with the clerk of the court that entered the judgment.

For wages, Colorado uses an objection to the calculation of exempt earnings, filed within 7 days, when the exempt amount is figured wrong. A claim of exemption, on Form 30, protects specific funds, such as exempt benefits or property other than earnings, that the law shields. Both go to the same court, and you can raise a miscalculation and an exemption at the same time.

Colorado protects more of your pay than federal law. Under C.R.S. 13-54-104 a creditor can take at most the lesser of 20 percent of your disposable earnings for the week, or the amount by which those earnings exceed 40 times the state minimum hourly wage. Disposable earnings are what is left after legally required deductions, so most Colorado wages keep an 80 percent floor.

For a wage garnishment you have 7 days from receiving the writ of continuing garnishment to object to the calculation of exempt earnings, under C.R.S. 13-54.5-108. A claim of exemption for property other than earnings is due within 14 days of the notice. Because earnings are withheld while the objection is pending, file as soon as you receive the writ.

Social Security, Supplemental Security Income, veterans benefits, disability, and many pensions and public benefits are exempt from garnishment for ordinary debts, no matter how much you owe. Colorado also caps ordinary wage garnishment at 20 percent of disposable earnings. If exempt benefits are frozen in a bank account, a claim of exemption is how you get the bank to release them.

Yes. Under C.R.S. 13-54-104 you can object and ask the court to protect more of your earnings if the standard exempt amount is not enough to support you and your family. Explain your household income and necessary expenses so the court can weigh the need. The standard 20 percent cap on garnishment applies to you either way.

You file with the clerk of the court that entered the judgment. Colorado provides garnishment forms, including the Objection to Calculation of Amount of Exempt Earnings (Form 28) and the Claim of Exemption to Writ of Garnishment With Notice (Form 30). Use the earnings objection for a wage garnishment and file within 7 days of receiving the writ.

After you file your objection or claim of exemption, the court sets a hearing no more than 14 days later. At the hearing you show the money is exempt or the calculation is wrong, and the creditor must justify the garnishment. If the court agrees the money is protected, it releases the funds and stops or reduces the garnishment. Until then, earnings are held.