Colorado Debt Collection Statute of Limitations Guide

Facing a debt lawsuit in Colorado? You need to know if collectors have the legal right to sue you. Old debts you barely remember might be time-barred. Understanding your rights can help you fight back effectively.

Colorado law sets strict timeframes for debt collection lawsuits. You have powerful defenses available when you know how to use them.

Colorado Statute of Limitations on Debt

Colorado sets specific timeframes for debt collection lawsuits. Most debts have a six-year statute of limitations. After that period expires, collectors lose their legal right to sue you.

The six-year period applies to written and oral contracts. Credit cards, medical bills, auto loans, student loans, and mortgages all fall under this rule.

Some debts have shorter timeframes. If a collector lacks basic information about the debt, the limit drops to three years. Court judgments get extended to 20 years and can be renewed.

IRS debts follow different rules. Federal tax debts remain collectable for up to 10 years in Colorado.

How Debt Collection Works in Colorado

Creditors contact you first when you miss payments. They remind you about the debt and inform you about accumulating interest.

Your account may get sold to a collection agency if reminders fail. Collection agencies specialize in pursuing overdue debts. They locate debtors and demand payment on past-due accounts.

The Fair Debt Collection Practices Act protects you from abuse. Collectors cannot harass you with constant calls. They cannot contact you during odd hours or use threatening language. Profanity and intimidation tactics are illegal.

You can sue collectors who violate these laws. They face penalties for breaking federal protection rules.

Lawsuits become the final option when collection attempts fail. A formal complaint means the collector is taking legal action against you. Our partner Solo helps you respond to debt lawsuits quickly and effectively.

Responding to a Debt Collection Lawsuit in Colorado

Never ignore a debt collection lawsuit. Ignoring the summons leads to automatic default judgment against you. You lose by not showing up.

Colorado gives you 21 days to file your Answer. The clock starts when you receive the summons. Missing this deadline costs you the case.

Verify the debt belongs to you first. Check that the amount is accurate. Confirm the collector has the right to sue you.

Check If the Debt Is Time-Barred

Calculate when the statute of limitations expires. Count from the date of your last payment or activity. If more than six years have passed, the debt may be time-barred.

Time-barred debts give you a strong defense. Collectors cannot legally sue for expired debts. You must still file your Answer to use this defense in court.

Writing Your Answer Document

Your Answer responds to each allegation in the complaint. You have three options for each claim: admit it, deny it, or state you lack knowledge.

You can admit some claims while denying others. Mix your responses based on the facts. Deny everything if the entire lawsuit is wrong.

Assert Your Affirmative Defenses

Affirmative defenses explain why the plaintiff cannot win. The statute of limitations is one powerful defense. Other common defenses include:

• You already paid the debt partially or in full
• The debt account does not belong to you
• The original contract was canceled or voided
• You were a cosigner without proper notice of your rights
• The collector lacks proof they own the debt
• The debt amount is incorrect or inflated

Filing Your Answer With the Court

Mail your Answer to the court listed on the summons. Send a copy to the plaintiff’s attorney by mail. Keep one copy for your personal records.

File before the 21-day deadline expires. Late answers may be rejected. Courts strictly enforce filing deadlines in Colorado.

How to Respond to a Debt Lawsuit Quickly

Responding to a lawsuit feels overwhelming. You might not know which defenses apply to your situation. Legal documents use confusing language and complex requirements.

Our partner Solo simplifies the entire process. The step-by-step platform asks you simple questions about your case. You answer questions in plain English without legal jargon.

The platform generates a properly formatted Answer document. You get a professional legal response ready to file with the court. The entire process takes about 15 minutes.

You can print and file the document yourself for free. Or pay a small fee to have Solo file it for you. Attorney review is available to strengthen your defense even more.

Your Rights as a Colorado Debtor

Colorado law protects you from abusive collection practices. You have the right to dispute debts you believe are incorrect. You can demand proof that the collector owns the debt.

You can request written verification of the debt amount. Collectors must provide documentation within 30 days of your request. They cannot continue collection activities until they provide proof.

You have the right to stop collector phone calls. Send a written request telling them to stop calling. They must communicate by mail only after receiving your request.

Wage garnishment in Colorado cannot exceed 25% of disposable earnings. Some income types are fully protected from garnishment. Social Security benefits and disability payments are exempt.

What Happens After You File Your Answer

The court reviews your Answer and schedules a hearing. The plaintiff must prove you owe the debt. They must provide documentation supporting their claims.

You present your defenses at the hearing. The judge evaluates evidence from both sides. Strong defenses can result in case dismissal.

Settlement negotiations often happen before trial. Collectors may agree to reduced payment amounts. You might negotiate a payment plan that fits your budget.

Some cases get dismissed when collectors cannot prove their case. Missing documentation or expired statutes of limitations lead to dismissals. Filing your Answer creates these opportunities.

Protecting Your Financial Future

Dealing with debt collectors damages your credit score. Court judgments make the damage worse. Responding to lawsuits limits the long-term impact.

Winning your case or negotiating a settlement protects your credit. You avoid wage garnishment and bank account levies. Your financial recovery can begin sooner.

Document everything related to the debt and lawsuit. Keep copies of all correspondence. Save proof of payments and communications with collectors.

Know your deadlines and meet them. Missing deadlines gives collectors an easy win. Mark your calendar and set reminders for important dates.

Act quickly when you receive a summons. The 21-day deadline arrives faster than you think. Our partner Solo helps you respond before time runs out.