Colorado Bank Account Garnishment: How to Levy a Debtor's Bank Account

If you know which bank the debtor uses, a non-earnings garnishment lets you freeze the debtor's account balance with one writ; releasing the funds requires the exemption and disbursement steps. Unlike wage garnishment, which trickles in over 182 days, a bank levy grabs whatever is sitting in the account at the moment the bank receives the writ.

The Form: Writ of Garnishment with Notice (Form 29)

Bank account garnishment in Colorado uses Form 29 — the Writ of Garnishment with Notice of Exemption and Pending Levy. Two companion forms are involved:

• Form 30 — Claim of Exemption (the debtor uses this to assert protected funds)
• Form 89 — Notice to Garnishee, Application of Funds to Judgment, and Release of Funds (you file this to get the money released to you)

All forms are available free from coloradojudicial.gov.

How the Process Works

1. File and serve the writ. Complete Form 29, file it with the County Court Clerk, and pay the filing fee. Arrange personal service on the bank through a sheriff deputy or private process server under C.R.C.P. 4.

2. The bank freezes the account. The moment the bank receives Form 29, it freezes all funds on deposit up to the judgment balance. The debtor can't withdraw or transfer the frozen amount. This happens immediately — the bank doesn't wait for court approval.

3. The bank files its answer. Within 14 days of service, the bank completes the sworn answer on Form 29, files it with the court, and sends you a copy. The answer tells you exactly how much was captured.

4. Serve the debtor. After serving the bank, you must serve the debtor with a copy of Form 29 and a blank Form 30 (Claim of Exemption) as soon as practicable.

5. Wait out the exemption window. The debtor has 14 days from service to file Form 30 claiming statutory exemptions. If they don't file anything within 14 days, you file Form 89 requesting a court order directing the bank to release the frozen funds to you.

6. If the debtor objects. If the debtor files Form 30 within 14 days, everything pauses. The court schedules a summary hearing within 14 days to determine which funds are exempt and which are available for levy.

What's Protected

Two layers of protection shield certain bank deposits:

Colorado's $2,500 cash exemption. Under C.R.S. § 13-54-102(1)(w), the debtor can exempt up to $2,500 of cumulative funds held across all financial institution accounts.

Federal benefits (automatic protection). Under 31 C.F.R. Part 212, when the bank receives Form 29, it must automatically review the account for direct-deposited federal benefits — Social Security, SSI, VA benefits, Railroad Retirement — from the prior two months. Those funds are protected automatically without the debtor filing anything. Only commingled non-exempt funds above the federal benefit baseline are subject to levy, still subject to the $2,500 state exemption.

What to Expect in Practice

A bank levy is a snapshot — it captures what's in the account at the moment of service. If the debtor's account is nearly empty that day, you get nearly nothing. If their rent check just cleared, the balance might be low. Timing matters, and you have no way to control it.

For debtors with regular income, wage garnishment (Form 26) often recovers more over time because it captures a portion of every paycheck for 182 days. A bank levy works better when you believe the debtor has a substantial balance sitting in the account — perhaps after a tax refund, insurance payout, or large deposit.

You can pursue both simultaneously: garnish wages with Form 26 and levy the bank account with Form 29. Just track the combined recovery on your judgment balance ledger to avoid over-collecting.

The Colorado Judgment Collection Guide covers the full bank levy procedure alongside the timing strategy for combining it with wage garnishment and property liens.

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