More Coloradans have their wages garnished than the national average. Nearly 1 in 13 workers here are subject to wage garnishments.
Your wages could be garnished for child support, alimony, or payment of debts. In Colorado, more people have garnishments for debt than for child support or alimony. Interestingly, more white collar workers are subject to garnishment in Colorado than manufacturing employees.
If your wages are garnished for debt repayment, the garnisher can take up to 25 percent of your net income from every paycheck until the debt is paid. CRS 13‑54‑104. If you’re being garnished for a domestic support obligation, up to 50 percent can be taken. CRS 13‑54‑104. Only one garnishment is allowed at a time, so multiple debts may take quite a while to pay off.
There are ways to resolve a garnishment including a debt workout plan or a bankruptcy. A debt workout plan involves communicating with all your creditors and working out a plan to pay something less than what you owe. Some creditors will take 30 cents on the dollar while others want 50 percent or more.
A bankruptcy will stop the garnishments in their tracks and your debts can be discharged. However, Child support and alimony must be paid. In addition, debts where the creditor has a secured interest in your real or personal property (mortgages and car loans) have to be worked out.
You’d have to contact an attorney to discover who bankruptcy or a debt workout will work for you.