It’s no coincidence that I get lots of phone calls from people looking for a bankruptcy attorney on Friday. For most people, Friday is payday. For people calling my office, that’s the day they learn their paycheck has been garnished.
Once a creditor has gotten judgment, he can execute on that judgment. That means he can do all sorts of things, like put a lien on your home; garnish your bank account; and garnish your paycheck.
In Colorado, after a creditor gets judgment, it will ask the court to issue a Writ of Garnishment. Once the court issues the writ, the creditor will serve it on your employer. It doesn’t need to serve the writ on you. The writ is an order to your employer to start deducting 25% of your take home pay and sending it to the creditor.
25% of your paycheck is a big chunk of income. Once the creditor starts garnishment, your options are usually limited. Bankruptcy will immediately stop any and all garnishments and could remove any liens a creditor has on your real estate and certain personal property. If you have been garnished, you should consider talking to a Colorado bankruptcy attorney to learn if bankruptcy is a good option for you.