Colorado debt statute of limitations

Colorado limitation periods by type of debt

Colorado applies a 6-year period to liquidated or determinable debts, which covers credit cards.

What the Colorado statute says

“(1) The following actions shall be commenced within six years after the cause of action accrues and not thereafter: (a) All actions to recover a liquidated debt or an unliquidated, determinable amount of money due to the person bringing the action,”
Colo. Rev. Stat. § 13-80-103.5(1)(a)

“shall be commenced within three years after the cause of action accrues, and not thereafter: (a) All contract actions, including personal contracts and actions under the "Uniform Commercial Code", except as otherwise provided in section 13-80-103.5;”
Colo. Rev. Stat. § 13-80-101(1)(a)

Does paying restart the clock in Colorado?

An acknowledgment or promise only counts if it is in a signed writing (Colo. Rev. Stat. § 13-80-113).

“No acknowledgment or promise shall be evidence of a new or continuing contract sufficient to take a case out of the operation of the statute of limitations, unless it is in writing signed by the party to be charged; but this section shall not alter the effect of a payment of principal or interest.”
Colo. Rev. Stat. § 13-80-113

Colorado’s own debt collection law

The Colorado Fair Debt Collection Practices Act (Colo. Rev. Stat. § 5-16-101 et seq.) governs debt collectors and collection agencies and bars, among other things, unfair or unconscionable collection methods.

“(1) A debt collector or collection agency shall not use unfair or unconscionable means to collect or attempt to collect any debt, including, but not limited to, the following conduct:”
Colo. Rev. Stat. §§ 5-16-101, 5-16-108(1)

If a creditor wins a judgment in Colorado

The statute of limitations is a defense to the lawsuit. If the creditor sues within the deadline and wins — or wins by default because nobody answered — different Colorado rules take over.

How long a judgment lasts

In Colorado, execution may issue on a district court judgment for twenty years after entry, but on a county court judgment (entered on or after July 1, 1981) only for six years after entry, unless the judgment is revived as provided by law; after that period the judgment is considered satisfied in full.

“With respect to judgments entered in county courts on or after July 1, 1981, the time limitation within which execution may issue is six years from the entry thereof, but not afterwards, unless revived as provided by law, and, after six years from the entry of final judgment in any county court of this state, the judgment shall be considered as satisfied in full, unless so revived.”
Colo. Rev. Stat. § 13-52-102(2)(a)-(b)(I)

Wage garnishment

For ordinary debts, Colorado limits garnishment to the lesser of 20% of weekly disposable earnings or the amount by which weekly disposable earnings exceed 40 times the federal or the Colorado minimum hourly wage, and the debtor may request a hearing to show that a greater portion should be exempt for living expenses.

“For debts other than debts pursuant to subsection (2)(a)(II) of this section, the lesser of: (A) Twenty percent of the individual's disposable earnings for that week; or (B) The amount by which the individual's disposable earnings for that week exceed forty times the federal minimum hourly wage”
Colo. Rev. Stat. § 13-54-104(2)(a)(I)

Money in a bank account

Colorado exempts up to ,500 cumulative in a depository account or accounts in the debtor's name from levy and sale.

“(w) Up to two thousand five hundred dollars cumulative in a depository account or accounts in the name of the debtor.”
Colo. Rev. Stat. § 13-54-102(1)(w)

Small claims court

Colorado small claims court hears civil actions where the amount claimed by either party does not exceed ,500, exclusive of interest and costs.

“The small claims court has concurrent original jurisdiction with the county and district courts in all civil actions in which the debt, damage, or value of the personal property claimed by either the plaintiff or the defendant, exclusive of interest and costs, does not exceed seven thousand five hundred dollars”
Colo. Rev. Stat. § 13-6-403(1)(a)

What to do next

1. Find the date of your last payment or account activity — that is usually when the clock started.
2. If a collector contacted you in the last 30 days, dispute in writing first: the validation letter generator asks the collector to verify the debt without admitting it.
3. Do not pay or sign anything on an old debt until you know how Colorado treats a payment (above).
4. If you are sued, respond by the deadline on the summons and raise the statute of limitations as a defense.

Common questions

How long can a debt collector sue me in Colorado?

6 years for credit-card debt and 6 years on a written contract, under Colo. Rev. Stat. § 13-80-103.5. The period usually runs from your last payment or the date of default.

Does a payment restart the clock in Colorado?

An acknowledgment or promise only counts if it is in a signed writing (Colo. Rev. Stat. § 13-80-113).

Does Colorado have its own debt collection law?

The Colorado Fair Debt Collection Practices Act (Colo. Rev. Stat. § 5-16-101 et seq.) governs debt collectors and collection agencies and bars, among other things, unfair or unconscionable collection methods. (Colo. Rev. Stat. §§ 5-16-101, 5-16-108(1)).

How long does a court judgment last in Colorado?

In Colorado, execution may issue on a district court judgment for twenty years after entry, but on a county court judgment (entered on or after July 1, 1981) only for six years after entry, unless the judgment is revived as provided by law; after that period the judgment is considered satisfied in full. (Colo. Rev. Stat. § 13-52-102(2)(a)-(b)(I)).

How much of my pay can be garnished in Colorado?

For ordinary debts, Colorado limits garnishment to the lesser of 20% of weekly disposable earnings or the amount by which weekly disposable earnings exceed 40 times the federal or the Colorado minimum hourly wage, and the debtor may request a hearing to show that a greater portion should be exempt for living expenses. (Colo. Rev. Stat. § 13-54-104(2)(a)(I)).

What if I am sued on an old debt in Colorado?

Respond by the deadline on the summons. An expired limitations period is a defense you generally have to raise yourself; a court that hears nothing from you can enter a default judgment.