The best business debt settlement companies Denver will let you hire are the ones that know how to use the 10 days after an out-of-state judgment is filed in Denver District Court or Denver County Court and the 14 days you have to claim exemptions after a writ is served on your bank.
Most ranking lists don't rank companies by this capability; one uses Google and Trustpilot reviews for 65% of its ranking. For statewide usury, homestead and debt management rules, see our Colorado business debt settlement guide.
Where Will a Funder Sue My Business in Denver?
The amount sued for decides it. County Courts can only hear money claims up to $25,000. See CRS 13-6-104 (effective Jan. 1, 2019). Anything larger goes to Denver District Court, in the 2nd Judicial District. Given that most MCA balances far exceed $25,000 (our inference, not a statistic), most direct suits against you will be in Denver District Court. A small advance or remaining balance could land in Denver County Court.
Small Claims Court tops out at $7,500 and cannot hear matters involving prejudgment remedies or injunctions. See CRS 13-6-403.
Can a New York funder reach your Denver bank account without suing in Colorado?
No. To garnish your bank account, they need a judgment filed in Colorado. They likely can't use a New York confession of judgment either, since it can only be filed in the county where you resided when you signed or when it is filed. See CPLR 3218(b). And a business is considered to reside in a county only if it has a place of business there.
The out-of-state judgment must first be "domesticated" under CRS 13-53-103. They must file an authenticated copy of the judgment with the clerk of any Colorado court, including Denver County Court if the judgment is within that court's limits. Once filed, it is treated as though it were a Colorado judgment. The clerk will mail you notice, and no attempt to execute on it can be made until 10 days after it is filed. See CRS 13-53-104. During that time, you can seek a stay and raise any defenses available against a Colorado judgment. A provider not watching Denver dockets misses this entirely.
What Happens When They Serve a Writ of Garnishment on My Bank in Denver?
Your bank will hold whatever you have in the account when it is served and wait for the court. The steps are printed on the Writ of Garnishment with Notice of Exemption and Pending Levy under C.R.C.P. 103. The bank can only hold the amount listed on Line 5 of the Writ, unless the property is indivisible.
| What | When | What it means for you |
|---|
| Bank holds funds | When writ is served on bank | Funds on hand, plus amounts coming due later, are held pending a court order. |
| Bank files answer under oath | 14 days after service | Bank can claim a setoff if you owe them money on a line of credit or loan. |
| You file your Claim of Exemption | 14 days after receipt of notice | Send copies by certified mail to the bank and the creditor's lawyer. |
| Hearing at Court | Within 14 days of your Claim of Exemption | If you don't go, they can take your money. |
| Court pays out funds | After a separate court notice or order | Until then, you can still negotiate over the held funds. |
For the freeze itself, see Can an MCA funder freeze my bank account?
What Are My Exemptions as a Guarantor in Colorado?
Colorado's bank account exemption is $2,500 for all of your personal bank accounts, not per bank account. That exemption is for accounts in the name of the debtor, so it probably does not apply to your LLC's business account, see CRS 13-54-102, but it should apply to your personal accounts (the statute is geared towards individuals, in our view).
You can also protect up to $60,000 in tools and stock in trade for your primary occupation ($20,000 for a secondary one), up to two vehicles worth no more than $15,000 combined ($25,000 if you are elderly or disabled), and retirement accounts like IRAs, Roth IRAs, ERISA accounts and HSAs. Wage garnishment is limited to the lesser of 20% of your weekly disposable earnings or the amount above 40 times the minimum hourly wage, see CRS 13-54-104. Colorado also has a $250,000 homestead exemption, rising to $350,000 if you, your spouse or a dependent living in the home is elderly or disabled.
A judgment becomes a lien on your Denver real estate once a certified transcript is recorded at the Denver Clerk and Recorder's office. It remains a lien for six (6) years but can be revived, see CRS 13-52-102. Interest on the judgment runs at the contract rate or, if there is none, 8% compounded yearly, see CRS 5-12-102(4).
How should you vet business debt settlement companies in Denver?
Ask who handles each checkpoint. Some providers refer out, so you need to know who will appear on your behalf.
- Which Colorado-licensed attorney will appear for you in Denver District Court or Denver County Court?
- Who will watch both dockets for a domesticated judgment (you only have 10 days)?
- Who will file the Claim of Exemption for your personal accounts within fourteen days? Are you prepared to swear to the accuracy of the Claim?
- Who will negotiate a release while garnished funds are held but not yet paid out?
Colorado has no commercial financing disclosure law as of March 2026. For how providers charge, see How much does business debt settlement cost?
Frequently Asked Questions
Does the $2,500 exemption apply to my LLC's business accounts?
Probably not. The $2,500 depository exemption is written with individuals in mind, so we don't believe it applies to an LLC or corporate account. It should apply to your personal account.
How long do I have to respond to a garnishment of my Denver bank account?
The bank has fourteen days after service to answer. You have fourteen days after receiving notice to file your written Claim of Exemption, and the court sets a hearing within fourteen days of a proper claim.
If the funder files a judgment from New York in Denver, can they start to collect on it immediately?
No. They cannot issue any execution or take other steps to enforce the judgment until ten days after they file it in Denver, see CRS 13-53-104. You can ask the court to stay enforcement during that time.
If the MCA funders sue me, will it be in Denver County Court or Denver District Court?
Denver County Court hears money cases up to $25,000; anything larger goes to Denver District Court, where we would expect most MCA lawsuits to be brought.