Colorado’s statute of limitations on debt collection establishes deadlines for when creditors and collection agencies can take legal action to recover unpaid debts. After this timeframe expires, the debt is considered “time-barred”, meaning you cannot pursue a court judgment. However, that doesn’t mean the debt is erased. Creditors may still attempt to recover it through non-legal methods, such as communication with the debtor.
Understanding these time limits helps businesses and collection agencies maximize recoveries while remaining compliant with Colorado’s debt collection laws.
How the Statute of Limitation Works
A statute of limitations restricts how long a creditor has to file a lawsuit to collect a debt. In Colorado, this period typically starts on the date of the last payment or when the account first became delinquent. Certain actions—such as making a partial payment or acknowledging the debt in writing—can reset the clock, giving creditors more time to pursue legal remedies.
Even when a debt is time-barred, creditors can still request repayment through informal means, but they must adhere to federal and state regulations to avoid violations.
What Are Colorado’s Statute of Limitations Laws?
The statute of limitations in Colorado depends on the type of debt in question. Written contracts and open accounts, like credit cards, generally have a six-year limit, while oral contracts have a three-year limit. Court-ordered judgments can be enforced for 20 years and may be renewed.
Time Limits by Type of Debt in Arkansas
| Open Accounts | 6 | Credit card debt, lines of credit, and other revolving credit arrangements typically fall here. |
Includes credit card debt and other revolving credit arrangements. The clock begins when the account is considered delinquent.
| Written Contracts | 6 | Includes loans or other agreements documented and signed by both parties. |
Encompasses agreements documented and signed by both parties (e.g., personal loans, business contracts).
| Oral Contracts | 3 | Verbal agreements where terms are not formally recorded in writing. |
Verbal agreements can be legally enforceable but are harder to prove in court.
| Promissory Notes | 6 | Debts confirmed by a signed note (e.g., some private loans, certain business debts). |
This includes signed promises to pay, such as for private loans or certain business debts. The limitations period usually starts from the first missed payment.
| Judgments | 20 | Court judgments can be enforced for 20 years in Colorado and are subject to renewal under specific conditions. |
Tolling & Exceptions to The Statute of Limitations
Certain actions or circumstances can pause (toll) or reset the statute of limitations in Colorado:
Partial Payment or Acknowledgment of Debt: If the debtor makes a payment or formally acknowledges the debt after the clock starts, the limitations period may reset.
Leaving the State: If a debtor moves out of Colorado, the statute of limitations may be paused until they return or can be served within the state’s jurisdiction.
Fraud or Concealment: If fraud is involved, the statute may not begin until the fraud is discovered.
Frequently Asked Questions for Businesses & Creditors
1. How does the statute of limitations impact my ability to collect on past-due accounts?
Once the statute of limitations is up, the debt is considered “time-barred.” While you can still pursue collection informally, you cannot obtain a court judgment against the debtor. It’s often more fruitful to focus on debts still within the enforceable window.
2. How do I know if I’m still within the statute of limitations period?
Typically, the clock starts from the date of the last payment or when the account became delinquent. To determine the exact timeframe:
- Check your records for the last payment or invoice date.
- Review any applicable contracts or notes for specific terms.
- If unsure, consult a professional at DebtCollectorsInternational.com.
3. Should I try to collect a debt even after the statute of limitations expires?
You can still request payment through letters or calls, but a time-barred debt can’t be enforced in court. Prioritizing legally enforceable debts often yields better results.
4. Does making a partial payment or acknowledging the debt change the statute of limitations?
Yes. Acknowledgment or partial payment may reset the clock, giving you another window to seek legal enforcement.
5. How do I determine the type of debt and its specific time limit?
Different types of debt (open accounts, written contracts, promissory notes, or judgments) often have unique limitation periods. Review:
- The original agreement to see if it was written, verbal, or a promissory note.
- Any judgment documents for court-ordered deadlines.
- Relevant state statutes or consult a legal advisor for clarity.
6. What if the debtor moves out of the state?
The statute may be paused until the debtor returns or is otherwise reachable within your states jurisdiction. This extension can give creditors additional time to file suit.
7. What are my next steps if my debtor is within the statutory timeframe?
- Gather documentation (contracts, invoices, communications).
- Consult a debt collection agency for professional assistance.
Acting promptly and with proper legal guidance can greatly improve recovery rates.
8. Why should I consider using a professional debt collection agency?
- Expertise: Agencies understand collection laws, negotiation tactics, and best practices.
- Time Savings: Free up internal resources to focus on business growth rather than chasing debts.
- Higher Recovery Rates: Skilled collectors often have better success at recovery efforts.
9. How can Debt Collectors International help my business?
At Debt Collectors International, we specialize in global and domestic debt recovery, offering:
- Global & Domestic Debt Recovery: We have the expertise and network to handle cases worldwide.
- Comprehensive Legal Support: Stay compliant with state and federal laws.
- Skilled Negotiation Tactics: Maximize returns without harming client relationships.
- Transparent Reporting: Get regular updates on your debt recovery progress.
- No Recovery — No Fee: You only pay if we successfully collect your debt.
Need Help Collecting a Debt or Negotiating a Settlement?
Click here to request a free debt collection consultation with Debt Collectors International. Our specialists will assess your situation and propose effective strategies to recover overdue accounts—quickly and professionally.
Disclaimer: The information in this guide is subject to change as laws evolve. For specific advice related to debt collection in Colorado, consult a licensed attorney or reach out to Debt Collectors International.