In Colorado, a debt generally becomes uncollectible in court after six years. This timeframe is determined by the state's statute of limitations, which applies to various common types of debt, including written contracts and open-ended accounts like credit cards.
The statute of limitations is a legal deadline after which a creditor can no longer sue you in court to collect a debt. While the debt itself does not disappear, the creditor loses the legal means to enforce repayment through the court system once this period expires.
Colorado Debt Statute of Limitations by Debt Type
For common consumer debts in Colorado, the statute of limitations is consistent:
| Debt Type | Statute of Limitations (Years) |
|---|---|
| Written Contracts | 6 |
| Open-Ended Accounts (Credit Cards) | 6 |
This means that if you have a credit card debt or a debt based on a written agreement, the creditor typically has six years from the date of the last activity or payment to file a lawsuit against you.
Understanding the Statute of Limitations for Debt
It's crucial to understand that while a debt may become "time-barred" (uncollectible through a lawsuit) after the statute of limitations expires, it does not erase the debt. Creditors may still attempt to collect the debt through phone calls or letters. However, if they try to sue you after the statute has passed, you can use the statute of limitations as a legal defense.
Several actions can potentially reset the clock on the statute of limitations, meaning the six-year period would start over from the new action date. These actions often include:
- Making a payment on the debt, even a small one.
- Making a new charge on an open-ended account.
- Acknowledging the debt in writing, such as in an email or letter.
Always be aware of how your actions might affect the statute of limitations on an old debt.
Keep in mind that debt can remain on your credit report for up to seven years from the date of the last activity, even if it's past the statute of limitations for legal action. For more detailed information, you can research reputable resources on debt collection laws and statutes of limitations.
