Debt Collection Laws in Colorado
If you're dealing with debt collection in Colorado, here's what actually protects you: a cap on how much of your paycheck can be garnished, a base amount of home equity and bank funds creditors can't touch, and a deadline after which a debt lawsuit generally can't succeed. Current as ofJuly 2026 — sourcing for each section is linked below.
Colorado's 2026 debt outlook
Bankruptcy filings in Colorado ran 9,055 in the 12 months ending March 2026, versus 8,077 the year before (+12.1%), per official U.S. Courts data. See the full 51-state filing ranking.
Serious mortgage delinquency (90+ days late) in Colorado sits at 0.6%, trending toward roughly 0.8% by the end of 2026 (elevated and rising). See the full 51-state outlook and methodology.
Debt collection complaints to the CFPB from Colorado residents ran 1,353 so far in 2026, versus 961 over the same window in 2025 (+41%). See the full state-by-state surge ranking.
How much of my paycheck can be garnished in Colorado?
Colorado protects more of your paycheck than the federal floor: a creditor can take whichever is smaller — 20% of your disposable weekly earnings, or the amount your pay goes over 40 times the minimum wage. That's a stricter combination than the 25%/30x-minimum-wage formula most states still default to.
This came from a 2019 reform (HB19-1189) that took effect for garnishment writs issued on or after October 1, 2020, replacing Colorado's old federal-equivalent formula. Health insurance premiums your employer withholds get deducted before the garnishment math runs, which can lower the amount available to a creditor further.
Child support garnishment is separate and much higher — up to 50-65% of disposable earnings depending on how far behind you are and whether you're supporting another spouse or child — and follows the federal cap rather than the 2019 reform above.
Can a creditor take money from my bank account in Colorado?
Colorado protects up to $2,500 total across your bank accounts from a creditor's levy — a more modest cushion than the wildcard-style exemptions some states offer.
That $2,500 is a cumulative cap across all your depository accounts, not a per-account allowance, and it doesn't reach above that threshold or protect funds that aren't traceable to it. Social Security and retirement funds have their own, separate and generally broader exemption under a different part of the same statute.
Is my home protected from creditors in Colorado?
Colorado protects $250,000 of equity in your home — or $350,000 if you, your spouse, or a dependent living there is elderly or disabled. That's a major jump from the old $75,000/$105,000 limits, raised by a 2022 law (SB22-086).
Don't confuse this with the separate property-tax homestead exemption for seniors and veterans — that's a different program with its own dollar figure and its own application process. This one only matters when a judgment creditor is trying to reach your home equity.
How long can a debt collector sue me in Colorado?
Colorado generally allows 6 years for a debt or contract claim whose amount is liquidated or can be determined, while other contract claims may run on a different clock — the key is the nature of the amount, not simply whether the agreement was oral or written.
| Debt type | Statute of limitations |
|---|---|
| Credit card / written contract (liquidated sum) | 6 years |
| Other contract claim | Often 3 years; classification matters |
Credit card debt lands in the 6-year bucket under the reasoning of a 1972 court of appeals decision (Uhl v. Fox) treating a fixed, determinable balance as a liquidated sum — some sources online describe credit cards as 3-year debt in Colorado, but that's not the majority practitioner view.
Does Colorado have its own debt collection law beyond the federal FDCPA?
Colorado has its own Fair Debt Collection Practices Act, enforced by the Attorney General's Consumer Credit Unit, and it requires third-party collection agencies to be state-licensed on top of everything the federal FDCPA already covers.
Licensing comes with financial and compliance requirements, and the law reaches some collection conduct by out-of-state agencies too. Creditors collecting their own debt under their own name are generally exempt from the licensing requirement; Colorado does not impose the claimed blanket requirement that every licensee maintain a public Colorado office.
Where can I find free or low-cost legal help in Colorado?
If you're dealing with a debt lawsuit, garnishment, or collector dispute in Colorado, a good starting point is the state bar's lawyer referral service or one of the legal aid organizations below — both can point you to self-help court resources even if you don't qualify for free representation.