Question 1

What is the statute of limitations on debt in Colorado?

Accepted Answer

6 years for actions to recover a liquidated debt or a determinable amount of money due, and for enforcing any instrument that secures or evidences a debt. Most consumer debts with a set balance fall in this category. Other contract claims generally have 3 years.

Question 2

How long can a creditor sue on a credit card debt in Colorado?

Accepted Answer

The 6-year period for liquidated or determinable debts generally applies to credit card and other account balances, whether or not there is a signed writing. Contract claims that are not for a liquidated or determinable amount have 3 years.

Question 3

Does making a payment restart the statute of limitations in Colorado?

Accepted Answer

An acknowledgment or promise to pay extends the limitations period only if it is in writing and signed by the debtor. The statute states that this rule does not change the effect of a payment of principal or interest.

Question 4

How long does a court judgment last in Colorado?

Accepted Answer

A district court judgment can be enforced for 20 years from entry; a county court judgment (entered on or after July 1, 1981) for 6 years. After that, the judgment is treated as satisfied unless revived. A judgment lien on real estate lasts 6 years from entry unless the judgment is revived and the revived judgment is recorded.

Question 5

How much of my wages can be garnished in Colorado?

Accepted Answer

For ordinary debts, the most that can be garnished each week is the lesser of 20% of disposable earnings, or the amount by which weekly disposable earnings exceed 40 times the federal minimum wage, or 40 times the Colorado minimum wage. This is stricter than the federal limit. A debtor can also file a written objection and ask the court to protect more of their pay if the remaining income does not cover actual, necessary living expenses.

Question 6

How much money in a bank account is protected from creditors in Colorado?

Accepted Answer

Up to $2,500 in total in a depository account or accounts in the debtor's name is exempt.

Question 7

What is the homestead exemption in Colorado?

Accepted Answer

$250,000 of equity in a home occupied by the owner or the owner's family, or $350,000 if the owner, the owner's spouse or a dependent living there is elderly (60 or older) or disabled.

Question 8

Can a creditor take my car in Colorado?

Accepted Answer

Up to two motor vehicles or bicycles kept and used by the debtor, up to $15,000 in total value; $25,000 if the debtor, the debtor's spouse or a dependent is elderly or disabled. Snowmobiles, ATVs, boats, travel trailers and motor homes do not qualify.

Question 9

What debt collection practices are illegal in Colorado?

Accepted Answer

Yes. The Colorado Fair Debt Collection Practices Act (C.R.S. Title 5, Article 16) regulates collection agencies and their collectors. A creditor's own officers and employees collecting in the creditor's name are excluded from the definition of collection agency.

Question 10

Do debt collectors need a license in Colorado?

Accepted Answer

Yes. It is unlawful to conduct a collection agency business, or to solicit the right to collect debts on behalf of others, without a license under the Colorado Fair Debt Collection Practices Act. Licensing is handled by the Attorney General's office.

Question 11

What protections apply to medical debt in Colorado?

Accepted Answer

Interest on medical debt is capped at 3% a year. Consumer reporting agencies may not include adverse information they know or should know concerns medical debt in consumer reports. This credit-reporting rule is scheduled to be repealed July 1, 2028.

Question 12

What is the maximum legal interest rate in Colorado?

Accepted Answer

Without an agreement, the statutory rate is 8% a year, compounded annually. A judgment bears the rate in the written contract (if it sets one) or otherwise 8% compounded annually. Medical debt interest is capped at 3%. Different rules apply to judgments that are appealed.

Question 13

How do I stop a garnishment or claim an exemption in Colorado?

Accepted Answer

For bank accounts and other property, the debtor files a written claim of exemption with the clerk of the court that entered the judgment within 14 days after being served with the notice of exemption, describing the property and the grounds. A copy must be sent to the creditor by certified mail. For wages, the debtor has 7 days after receiving the writ to try to resolve a miscalculation with the employer, then may file a written objection with the court. Filing stops further action on the property until the court decides.

Question 14

Which bankruptcy exemptions can I use in Colorado?

Accepted Answer

Colorado has opted out of the federal exemptions. Colorado residents may claim only the exemptions provided by Colorado statutes.

Time limit to sue on a written contract	6 years for actions to recover a liquidated debt or a determinable amount of money due, and for enforcing any instrument that secures or evidences a debt. Most consumer debts with a set balance fall in this category. Other contract claims generally have 3 years. Read in the official Colorado Revised Statutes 2024 Title 13 printout (Office of Legislative Legal Services). 2025-2026 amendments, if any, are not reflected. Source: C.R.S. § 13-80-103.5(1)(a); § 13-80-101(1)(a)
Time limit for credit cards and open accounts	The 6-year period for liquidated or determinable debts generally applies to credit card and other account balances, whether or not there is a signed writing. Contract claims that are not for a liquidated or determinable amount have 3 years. Source: C.R.S. § 13-80-103.5(1)(a); § 13-80-101(1)(a)
Can a payment restart the clock?	An acknowledgment or promise to pay extends the limitations period only if it is in writing and signed by the debtor. The statute states that this rule does not change the effect of a payment of principal or interest. The statute does not itself say how long a payment extends the period. Source: C.R.S. § 13-80-113
How long a judgment lasts	A district court judgment can be enforced for 20 years from entry; a county court judgment (entered on or after July 1, 1981) for 6 years. After that, the judgment is treated as satisfied unless revived. A judgment lien on real estate lasts 6 years from entry unless the judgment is revived and the revived judgment is recorded. Source: C.R.S. § 13-52-102(1), (2)

Wage garnishment limit	For ordinary debts, the most that can be garnished each week is the lesser of 20% of disposable earnings, or the amount by which weekly disposable earnings exceed 40 times the federal minimum wage, or 40 times the Colorado minimum wage. This is stricter than the federal limit. A debtor can also file a written objection and ask the court to protect more of their pay if the remaining income does not cover actual, necessary living expenses. Different limits apply to child support and some public-assistance debts. Source: C.R.S. § 13-54-104(2)(a)(I)
Money protected in a bank account	Up to $2,500 in total in a depository account or accounts in the debtor's name is exempt. Amended by SB 22-086 (2022). Exempt benefits deposited in an account keep their own protections. Source: C.R.S. § 13-54-102(1)(w)
Homestead exemption	$250,000 of equity in a home occupied by the owner or the owner's family, or $350,000 if the owner, the owner's spouse or a dependent living there is elderly (60 or older) or disabled. Amounts set by SB 22-086, effective April 7, 2022. Read in the official 2024 Title 38 printout. Source: C.R.S. § 38-41-201
Vehicle exemption	Up to two motor vehicles or bicycles kept and used by the debtor, up to $15,000 in total value; $25,000 if the debtor, the debtor's spouse or a dependent is elderly or disabled. Snowmobiles, ATVs, boats, travel trailers and motor homes do not qualify. Source: C.R.S. § 13-54-102(1)(j)
Claiming an exemption	For bank accounts and other property, the debtor files a written claim of exemption with the clerk of the court that entered the judgment within 14 days after being served with the notice of exemption, describing the property and the grounds. A copy must be sent to the creditor by certified mail. For wages, the debtor has 7 days after receiving the writ to try to resolve a miscalculation with the employer, then may file a written objection with the court. Filing stops further action on the property until the court decides. Source: C.R.S. § 13-54.5-108
Bankruptcy exemptions	Colorado has opted out of the federal exemptions. Colorado residents may claim only the exemptions provided by Colorado statutes. Source: C.R.S. § 13-54-107

State debt collection law	Yes. The Colorado Fair Debt Collection Practices Act (C.R.S. Title 5, Article 16) regulates collection agencies and their collectors. A creditor's own officers and employees collecting in the creditor's name are excluded from the definition of collection agency. Source: C.R.S. § 5-16-103(3)
Debt collector licensing	Yes. It is unlawful to conduct a collection agency business, or to solicit the right to collect debts on behalf of others, without a license under the Colorado Fair Debt Collection Practices Act. Licensing is handled by the Attorney General's office. Source: C.R.S. § 5-16-115
Medical debt protections	Interest on medical debt is capped at 3% a year. Consumer reporting agencies may not include adverse information they know or should know concerns medical debt in consumer reports. This credit-reporting rule is scheduled to be repealed July 1, 2028. Source: C.R.S. § 5-12-102(5); § 5-18-109(1)(f)
Interest rate limits	Without an agreement, the statutory rate is 8% a year, compounded annually. A judgment bears the rate in the written contract (if it sets one) or otherwise 8% compounded annually. Medical debt interest is capped at 3%. Different rules apply to judgments that are appealed. Source: C.R.S. § 5-12-102(1), (2), (4), (5)

Colorado Debt Collection Laws: Time Limits, Garnishment and Your Rights

Quick answers for Colorado

Time limits

Garnishment and what creditors can't take

Debt collectors and interest

Where to get help in Colorado

Debt & Collections FAQ

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