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Colorado Legislation Would Create Earnings Exemption for Medical Debt

Colorado House Bill 19-1089, introduced on Jan. 14, would amend the Colorado Revised Statutes dealing with property and earnings exemptions by adding a new definition for “medical debt,” which would mean “any obligation or alleged obligation of a person to pay money arising out of the provision of health care services as defined in section 10-16-102(33).”

Under the legislation, “the earnings of an individual whose family income does not exceed four hundred percent of the current federal poverty guidelines, adjusted for family size, are not subject to garnishment or levy under execution of attachment if the writ is the result of a judgment for medical debt entered on or after January 1, 2020.”

Thus, for a household with three persons, the earnings would be exempt under the January 2019 poverty guidelines if less than or equal to $85,320.

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