How to Stop Wage Garnishment, Foreclosure, or Creditor Harassment Immediately in Colorado

The fastest legal way to make it stop

By Martin E. Long, Long & Long, P.C. — former Chapter 7 Trustee with more than 40 years in Colorado bankruptcy practice.

Your paycheck is short because of a garnishment. A Notice of Election and Demand from the Public Trustee is sitting on your kitchen table. The phone rings with collectors before breakfast. If that is your week, you need one fact before anything else: filing a bankruptcy case stops all three the moment the petition is filed.

That protection is called the automatic stay. It is a federal court order that takes effect instantly, without a hearing and without a judge signing anything. I have watched it work for thousands of Colorado families, first as a Chapter 13 Trustee and now as their lawyer. Here is how it works, what it stops, what it does not, and what to do today if a deadline is close.

How the automatic stay works

Under 11 U.S.C. § 362(a), the filing of a bankruptcy petition automatically halts nearly every collection action against you and your property. Creditors must stop:

• Wage garnishments and bank account levies
• Foreclosure sales, including Public Trustee sales
• Collection lawsuits and judgments in progress
• Phone calls, letters, texts, and emails demanding payment
• Repossessions and most utility shutoffs

The stay applies whether you file Chapter 7 or Chapter 13. Creditors who keep collecting after they know about your case are violating a federal court order. Under § 362(k), an individual hurt by a willful violation can recover actual damages, attorney’s fees, and in some cases punitive damages.

In practice, we notify the garnishing employer, the foreclosing lender’s attorney, and the Public Trustee directly once your case number issues. Do not wait for the court’s mailed notice, which can take days.

How to stop wage garnishment in Colorado

Colorado already limits garnishment more than federal law does. Under C.R.S. § 13-54-104, a judgment creditor can take only the lesser of 20% of your weekly disposable earnings or the amount above 40 times the state minimum wage. With Colorado’s 2026 minimum wage of $15.16 an hour, the first $606.40 of weekly take-home pay is protected (Legal Clarity; Nolo).

That cap still hurts. Your options to stop it entirely:

1. File bankruptcy. The automatic stay stops a continuing writ of garnishment on the filing date. Your employer must stop withholding as soon as it has notice of the case.
2. Negotiate. Some creditors will release a garnishment for a payment plan, though nothing obligates them to.

In Chapter 7, the underlying credit card, medical, or personal loan judgment is usually discharged, so the garnishment never comes back. Child support and some tax garnishments are treated differently; see the limits section below.

How to stop foreclosure with bankruptcy in Colorado

Most Colorado foreclosures are non-judicial and run through the county Public Trustee. The lender records a Notice of Election and Demand, obtains a Rule 120 order from the district court authorizing the sale, and the Public Trustee sells the home at auction, typically about four months after the notice is recorded.

A bankruptcy filed before the sale stops it. The Public Trustee cannot proceed while the stay is in place. Timing is everything.

What happens next depends on the chapter:

• Chapter 13 is the tool most homeowners need. It lets you repay missed mortgage payments over three to five years while you resume regular payments, and once the court confirms the plan, it binds the lender. It can also strip off a wholly unsecured second mortgage in the right case.
• Chapter 7 stops the sale temporarily, often for several weeks to a few months, which can be enough time to sell, refinance, or complete a loan modification. It does not cure arrears.

Outside bankruptcy, Colorado also lets borrowers cure the default by filing a notice of intent to cure with the Public Trustee before the statutory deadline. If you can pay the full arrears in a lump sum, that may be enough. If you cannot, Chapter 13 is usually the answer.

How to stop creditor harassment

You have rights even before you file. The federal Fair Debt Collection Practices Act (15 U.S.C. § 1692 et seq.) and the Colorado Fair Debt Collection Practices Act (C.R.S. § 5-16-101 et seq.) prohibit collectors from:

• Calling before 8 a.m. or after 9 p.m., or at work once told not to
• Threatening arrest, violence, or action they cannot legally take
• Using profanity or repeated calls meant to harass
• Discussing your debt with family, neighbors, or your employer
• Misstating the amount owed or pretending to be attorneys or government officials

Send a written request that the collector stop contacting you, and keep a log of every call. Violations can support a claim for statutory damages and attorney’s fees.

Those laws mostly cover third-party collectors, not the original lender. Bankruptcy covers everyone. Once you file, give the caller your case number and your attorney’s name. Original creditors, collection agencies, and debt buyers all must stop, and the calls typically end within days.

Chapter 7 or Chapter 13 in an emergency?

Both chapters trigger the same automatic stay on day one. The difference is what happens after.

I can tell you the plans that succeed are the ones built on an honest budget from the start. We will run both options with your real numbers before you choose.

What the automatic stay does not stop

An honest answer includes the exceptions:

• Child support and alimony. Collection of domestic support obligations from non-estate income, including wage withholding, continues (§ 362(b)(2)).
• Some tax actions. Audits and assessments may continue, though most levies stop.
• Repeat filers. If you had a case dismissed within the past year, the stay may last only 30 days unless the court extends it; with two dismissals, there may be no stay at all (§ 362(c)(3)–(4)).
• Relief from stay. A lender can ask the court to lift the stay, especially if you cannot keep up with payments going forward.
• Completed sales. Bankruptcy cannot undo a foreclosure sale that already happened.

Frequently asked questions

How fast does bankruptcy stop a wage garnishment? Immediately on filing. Your employer must stop withholding once it learns of the case, which is why we notify it the same day.

Can I stop a foreclosure the day before the sale? Yes, if the petition is filed before the Public Trustee’s sale begins. Waiting that long is risky, so call as soon as you receive a Notice of Election and Demand.

Will bankruptcy stop debt collector calls? Yes. Every creditor and collector must stop contacting you once the case is filed.

Will I lose my house if I file? Not if your goal is to keep it and you can afford a plan. Colorado’s homestead exemption protects significant equity, and a plan lets you catch up on arrears.

Does filing bankruptcy ruin my credit forever? No. A Chapter 7 can appear on your report for up to 10 years and a Chapter 13 for up to 7, but its impact quickly diminishes and many clients see their scores improve within a year or two of discharge.

Stop the garnishment, the foreclosure, or the calls today

You do not have to wait for the next paycheck or the auction date. Long & Long, P.C. has helped Colorado individuals and families through bankruptcy for more than four decades, and I bring a former trustee’s view of what makes a case succeed.

Call Long & Long, P.C. today at 303-832-2655 for a free consultation, or contact us online. If your sale date or next garnishment is days away, say so when you call so we can move first.

Serving Denver, Centennial, Aurora, Lakewood, Littleton, Colorado Springs and the Front Range.

This article is general information about Colorado and federal bankruptcy law as of October 2026, not legal advice for your situation. Reading it does not create an attorney-client relationship. Long & Long, P.C. is a debt relief agency; we help people file for bankruptcy relief under the Bankruptcy Code.