Once they get a judgment, they can file a lien against your property. However, normally they go after garnishing bank accounts and paychecks - more liquid assets - first and foremost. I would consult with an attorney about negotiating the debt down for you.
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Once a judgment has entered in Colorado in favor of a creditor, the judgment can be recorded as a lien all real property in the state. The creditor is not obligated to make payment arrangements as the balance is due in full. The creditor may garnish money from your bank account once judgment enters. You may be able to negotiate a settlement for less than the full amount due with the creditor.
Depending on your fact situation, the anticipated length of the litigation, the risk of you transferring property during the litigation, the amount of debt, etc., it is possible for a creditor to "lien" your real property and some personal assets via what is called a prejudgment remedy, before obtaining a judgment against you. Basically, the process results in the petitioner creditor obtaining a lien against your property / assets pending final resolution of the litigation. It is a very unusual remedy in a "consumer" debt situation, but possible.
If the creditor obtains a judgment against you, once the appeal period has run, the judgment creditor can seek to engage in post-judgment collection activities, including, without limitation, seeking to garnish bank accounts, seeking to garnish wages, seeking to place liens on real property (with the real possibility of the judgment creditor then attempting to foreclose the judgment lien), etc. You are likely entitled to a variety of "exemptions" which, in essence, prevent the judgment creditor for taking certain types of property, in certain amounts. Notwithstanding, the "exemptions" have to be claimed so as to be utilized.
I recommend that you consult qualified counsel in your area.
Paul M. Gaide, Esquire
Law Offices of Paul M. Gaide
P.O. Box 280312
Lakewood, Colorado 80228-0312