Debt relief in Colorado: collection rules, time limits and your options
Updated November 9, 2026
Colorado at a glance (checked November 2026)
| Colorado | |
|---|---|
| Time limit to sue on credit cards and most consumer debts | 6 years |
| Wage garnishment for consumer debt | Up to 20% of disposable pay, less for low earners |
| State debt collection law | Colorado Fair Debt Collection Practices Act (C.R.S. § 5-16-101 and following) |
| Who licenses debt collectors | Colorado Attorney General's office (Collection Agency Board) |
| Where to complain | Colorado Attorney General, and the CFPB |
Debt collection rules in Colorado
The Colorado Fair Debt Collection Practices Act covers collection agencies and debt buyers, and adds to the federal rules. A collection agency needs a Colorado license, which the Attorney General's office administers, and it can lose that license for unfair practices. On top of the federal limits on call times, threats and false statements, Colorado collectors must include a notice of your rights under Colorado law in their first letter.
Colorado has extra rules for medical debt. Collectors must give you a written copy of any payment plan with four or more payments, must hold off while an insurance appeal is pending, and must tell you about Colorado's limits on reporting medical debt to the credit bureaus. Hospitals must also screen patients for financial assistance before sending a bill to collections.
How long creditors have to sue
Colorado gives creditors 6 years to sue on a "liquidated debt," meaning a fixed or easily figured amount of money (C.R.S. § 13-80-103.5). That covers most credit cards, personal loans and medical bills. Some debts based on oral agreements have a shorter 3-year limit.
The clock generally starts when you default. After 6 years, the debt is time-barred: a collector can still ask you to pay but can't sue you or threaten to. Before you make a payment on an old debt, ask the collector in writing how old it is.
What can be garnished in Colorado
Since October 2020, a creditor with a judgment can take the lesser of:
- 20% of your disposable earnings (pay after required deductions), or
- the amount your weekly disposable earnings exceed 40 times the Colorado minimum wage.
Because Colorado's minimum wage is well above the federal one, more of a low earner's pay is protected than in most states. Child support and taxes follow different limits.
Colorado also protects equity in your home through the homestead exemption, with a higher amount for people who are elderly or disabled, along with a vehicle, household goods and retirement accounts up to set amounts.
Ways out of debt in Colorado
- Nonprofit credit counseling can arrange a debt management plan with lower card rates. Look for an NFCC or FCAA member.
- Consolidation works when the new loan's rate and fees beat what you pay now. Test it with our debt consolidation calculator.
- Debt settlement companies must follow Colorado's debt-management laws and the federal ban on fees before a debt is settled.
- Bankruptcy: Colorado requires you to use its own exemption list in bankruptcy. A bankruptcy attorney can tell you how much home and car equity it protects in your case.
Where to get help or complain
- Colorado Attorney General licenses collection agencies and takes complaints about collectors.
- Consumer Financial Protection Bureau takes complaints about collectors and lenders nationwide.
- Colorado Legal Services gives free civil legal help to Coloradans with low incomes.
General information about Colorado law, not legal advice. Checked November 2026.