Colorado Credit Card Debt: Statute of Limitations (2026)

How Colorado’s 6-year statute of limitations works

Colorado applies a 6-year statute of limitations to credit card debt under CRS § 13-80-103.5, which covers actions on debt acknowledged in writing, debt evidenced by an instrument in writing, or debt arising from an open account stated. The Colorado Court of Appeals in Hassler v. Account Brokers of Larimer County, 274 P.3d 547 (Colo. App. 2012) confirmed the 6-year period applies to credit card accounts.

The clock starts on the date of default, generally the date the first missed payment was due that ultimately led to charge-off, or the date of last payment, whichever is later. Charge-off itself does not start a new clock. If you stopped paying a Chase card in January 2026 and never made another payment, the 6-year clock runs through January 2032.

Colorado allows revival of time-barred debt. Under CRS § 13-80-113, a written acknowledgment of the debt or a partial payment after the limitation period has run can revive the obligation and start a new 6-year clock. This differs from New York and Texas, which have stronger anti-revival rules. Colorado consumers approaching or past the 6-year window should avoid making partial payments or written acknowledgments to avoid triggering revival.

If you are sued in Colorado County Court or District Court on a credit card debt, the answer deadline is 21 days from service. Failure to file an answer results in a default judgment for the full balance, court costs, and post-judgment interest at the federal post-judgment rate or 8% per year under CRS § 5-12-102, whichever is lower.

Real example timeline

Jeff stopped paying a $11,200 Citi card in March 2020 after a divorce. The account charged off in September 2020. In April 2026, six years and one month after default, Jeff received a settlement offer from Midland Credit Management. Tempted, Jeff made a $200 “good faith” payment in response. The payment revived the time-barred debt under CRS § 13-80-113. Midland then sued in July 2026 within the new 6-year window. The lesson: never pay or acknowledge a time-barred Colorado debt in writing.

Wage garnishment cap is lower than the federal default

Colorado is one of fewer than ten states that caps wage garnishment below the federal 25%. House Bill 20-1162, signed by Governor Polis in October 2020, amended CRS § 13-54.5-101 to reduce the cap on non-priority debt garnishment (including credit cards) from 25% to 20% of disposable earnings. The bill also raised the minimum-wage threshold from 30× the federal minimum to 40× the state minimum wage.

Settlement math for a typical Colorado credit card balance

The pillar payoff calculator models the same balance across three paths: continue minimums, settle for a lump sum, or aggressive payoff. Colorado’s moderate 8% post-judgment interest rate and 6-year SOL mean that judgments accrue moderately and revival risk makes timing of partial payments critical.

Typical scenario: $10,800 balance, 25.99% APR, minimum payment of 2% of balance.

• Path 1, minimums only: 31 years to payoff, $19,400 in interest paid.
• Path 2, settle pre-judgment at 40%: $4,320 lump sum, account closed, charge-off remains on credit report 7 years from first delinquency under the Fair Credit Reporting Act § 605.
• Path 3, settle pre-judgment at 50% over 12 months: $5,400 paid in installments, similar credit impact.

Comparison with neighboring states

When you are functionally judgment-proof in Colorado

If your only income is Social Security, SSI, Veterans Affairs, public assistance, or unemployment, those funds are exempt under 42 U.S.C. § 407 and Colorado-specific exemptions in CRS § 13-54-104. Colorado also exempts the first $2,500 in a bank account from execution under CRS § 13-54-102(1)(p), and the federal 2-month rule under 31 CFR Part 212 protects 2 months of federal benefit deposits automatically.

Wage garnishment math under CRS § 13-54.5-101 (post HB 20-1162)

Colorado’s wage garnishment statute, after HB 20-1162 (effective October 2020), caps a writ at the lesser of:

• 20% of disposable earnings for the workweek, OR
• The amount by which weekly disposable earnings exceed 40 times the state minimum wage ($576.80/week at $14.42).

For a worker earning $1,000/week gross in Denver with $200 in mandatory deductions ($800 disposable), the analysis runs:

• 20% disposable = $160/week cap
• Disposable minus (40 × $14.42 state min wage) = $800 - $576.80 = $223.20/week

The lesser figure controls: $160/week, or 20% of disposable. Colorado’s 20% cap is 5 percentage points below the federal 25% default, and the 40-multiplier against state minimum wage produces a higher protection threshold than the federal 30-multiplier against federal minimum wage. The combination makes Colorado materially more debtor-friendly than the federal default.

Tiered homestead exemption with age-based bonus

Under CRS § 38-41-201, as amended by HB 22-1115 effective January 1, 2023:

• General debtor: $250,000 of equity in a primary residence.
• Senior or disabled debtor: $350,000 if the debtor or the debtor’s spouse is at least 60 years old or has a permanent disability.

The exemption applies automatically; no declaration is required. A Colorado homeowner with equity below the applicable cap is fully protected from forced sale by a credit card judgment creditor. The pre-2023 amounts were $75,000 general and $105,000 senior or disabled, so HB 22-1115 more than tripled the protection.

Colorado FDCPA layered on federal FDCPA

The Colorado Fair Debt Collection Practices Act (CRS § 5-16-101 et seq.) mirrors the federal FDCPA but applies to original creditors collecting their own debts (federal FDCPA generally does not). The act prohibits abusive, unfair, or deceptive collection practices, requires written validation notices within 5 days of initial communication, and provides statutory damages plus actual damages for violations.

Colorado licensing of collection agencies and debt management providers is administered by the Office of the Attorney General, Uniform Consumer Credit Code division. Verify any debt-relief firm at the UCCC license search before paying. The Colorado Attorney General’s consumer complaint portal routinely investigates violations.

Debt Management Services Act

The Colorado Debt Management Services Act (CRS § 5-19-201 et seq.) requires debt management providers to register with the Colorado Attorney General. Registration requires a surety bond, financial responsibility evidence, written contracts with consumer cancellation rights, and ongoing audits. Out-of-state debt-relief firms targeting Colorado residents are also covered by the federal Telemarketing Sales Rule barring advance fees.

Authoritative sources

• Colorado Revised Statutes § 13-80-103.5 (6-year SOL)
• Colorado Revised Statutes § 13-54.5-101 (wage garnishment)
• Colorado Revised Statutes § 38-41-201 (homestead exemption)
• Colorado Revised Statutes § 5-16-101 (Colorado FDCPA)
• Colorado Revised Statutes § 5-19-201 (Debt Management Services Act)
• Colorado Attorney General Uniform Consumer Credit Code
• Colorado Attorney General consumer complaint
• CFPB time-barred debt guidance

Neighboring states with different rules

• Wyoming credit card debt laws (10-year SOL)
• Utah credit card debt laws (6-year SOL)
• New Mexico credit card debt laws (community property)
• Nebraska credit card debt laws (5-year SOL)
• Kansas credit card debt laws (5-year SOL)

Related tools

• Credit card payoff calculator to compare settlement vs minimums vs aggressive payoff
• Debt management plan calculator
• Can credit card debt garnish your wages?
• Can credit card debt be garnished from Social Security?

Frequently asked questions

What is the statute of limitations on credit card debt in Colorado?

Colorado has a 6-year statute of limitations on credit card debt under CRS § 13-80-103.5, which applies to debt acknowledged in writing or in the form of an open account stated. The Colorado Court of Appeals in Hassler v. Account Brokers of Larimer County (2012) confirmed the 6-year period applies to credit card accounts. The clock starts on the date of default, generally the date of last payment or last activity.

Can Colorado creditors garnish my wages for credit card debt?

Yes, after a judgment, but at a lower cap than federal law. Under CRS § 13-54.5-101 as amended by HB 20-1162 effective October 2020, Colorado caps wage garnishment for non-priority debts at the lesser of 20% of disposable earnings or the amount by which weekly disposable earnings exceed 40 times the state minimum wage. With Colorado’s $14.42/hour state minimum wage for 2026, the threshold is $576.80/week disposable before any garnishment applies.

What is Colorado’s homestead exemption for credit card debt?

Under CRS § 38-41-201 as amended by HB 22-1115 effective January 1, 2023, the Colorado homestead exemption is $250,000 of equity for a general debtor and $350,000 for a debtor (or spouse) who is at least 60 years old or disabled. The exemption applies automatically to a primary residence. A Colorado homeowner with equity below the applicable cap is fully protected from forced sale by a credit card judgment creditor.

What happens after Colorado’s 6-year statute of limitations expires?

The debt becomes time-barred. A creditor can still ask you to pay and can still report the charge-off to credit bureaus for 7 years from first delinquency, but cannot sue you to collect. If you are sued on a time-barred debt in Colorado, raise the statute of limitations as an affirmative defense in your answer. Under CRS § 13-80-113, a written acknowledgment or partial payment can revive a time-barred debt in Colorado, so avoid both if the debt is approaching or past SOL.

Does Colorado license debt relief companies?

Yes. The Colorado Debt Management Services Act (CRS § 5-19-201 et seq.) requires debt management providers to register with the Colorado Attorney General. The Uniform Consumer Credit Code (CRS Title 5 Article 1) and Colorado Fair Debt Collection Practices Act (CRS § 5-16-101 et seq.) layer state consumer protections on top of the federal FDCPA. Verify any firm at the Attorney General’s UCCC license search before paying fees.