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Extending Limitations On Debt Collection Actions

Concerning modification of the limitations on certain debt collection actions enacted in Senate Bill 20-211.
2021 Regular Session
Courts & Judicial
State Government
Bill Summary

The bill extends the time in which debtors experiencing financial hardship due to the COVID-19 emergency may have extraordinary debt collection actions suspended. Currently, the law requires a judgment creditor (creditor) to provide a notice to a judgment debtor (debtor) before instituting an extraordinary debt collection action, which includes an action in the nature of a garnishment, attachment, levy, or execution to collect or enforce a judgment. The debtor may suspend the collection action by notifying the creditor that the debtor is experiencing financial hardship due to COVID-19. The obligation to provide notice and the suspension of the collection action are effective through February 1, 2021. The bill extends the effective period for the notice and the suspension to June 1, 2021. If a collection action has already been suspended by the debtor, the creditor is required to notify the debtor that the suspension is now effective through June 1, 2021.

In addition, under current law, up to $4,000 cumulative in a depository account or accounts in a debtor's name is exempt from levy and sale under a writ of attachment or execution through February 1, 2021. The bill extends that date to June 1, 2021.

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)


Became Law


Bill Text