Statute of Limitations in Colorado

For all debt collectors and those opposing collection, understanding the statute of limitations in Colorado is critical for when you can sue or be sued. Each state has differing time lines when a legal action must be bought or the claim for collection is forever barred, and the debt is legally discharged.

Debts that are incurred and are subject to a written agreement, can be bought any time within 6 years in Colorado. These include credit card debts, medical debts, student loans, leases, mortgages and construction defects. C.R.S. §13-80-103.5. Debts which are incurred and are not subject to a written agreement are governed by a three-year statute of limitations, including claims for fraud, survey defects, UCC claims, breach of fiduciary duty. C.R.S. §13-80-101.

Claims involving fraud, misrepresentation have a unique aspect involving when the fraud was actually discovered or should have been discovered which governs the date of accrual of the claim. C.R.S. section 13-80-108. In Colorado this statute of limitations is known as the "discovery rule." This objective standard or reasonable man standard can shorten the time frame when the party claims to have actually discovered the fraud to when an objective person would have reasonably discovered the fraud. Stated another way, the earlier date of actual knowledge or should have reasonably discovered the fraud applies.

A District Court judgment can be enforced for 20 years form the date of the judgment. A County Court judgment is valid for 6 years from the date of the judgment. These judgments can be extended by a motion to revive a judgment if timely filed before the expiration of the judgment term.

Understanding when a cause of action accrues is also critical to determine when the statute of limitations expires. As an example, on a debt, the cause of action begins on when the payment is due and not paid; on a fraud claim, when the claimant knew or should have known of the deceit. C.R.S. § 13-80-108.

One must also understand that statute of limitations can be tolled by a new agreement, or by subsequent payment. C.R.S. §13-80-113.

An often-missed legal concept is that causes of actions which arose in a different state that cannot be enforced in that state, will act as a bar to enforcement in Colorado. C.R.S. § 13-80-110. For example, if a car loan which was originated in California has four-year enforcement period and that period has expired, a creditor cannot sue for enforcement under Colorado’s six-year statute of limitations in years 5 and 6.

Lastly, even if you have a debt, you have rights against creditors under the Fair Debt Collection Practices Act, codified at C.R.S. §5-16-101-135.

Please do note that the information above cannot be construed as legal advice. Each case has its own set of unique circumstances requiring further investigation. Once you are retained as a client, we provide a full analysis of the presented facts to applicable statutes governing your case.

Contact Colorado Legal Counsel to arrange a consultation.