Colorado Debt Relief
Credit Card Debt law in Colorado allows for a six-year Statute of Limitations (SOL) in which a creditor can file suit for unpaid open-ended accounts. The SOL starts on the date of the first missed payment. If a partial payment is made, it resets the time limit, making the date of that payment the start of the SOL. In Colorado, a defendant has allows 20 days to respond to a summons. Send answers via certified mail to be sure they arrive on time.
Colorado allows one of the longest time limits on judgments among the US states. Creditors have 20 years to collect a debt after a judgment. Liens may be placed on the debtors real and personal property or the property may be seized and sold to pay the debt. Liens must be renewed every six years to remain in effect. Creditors may also garnish wages, but only after a favorable judgment has been ordered. The debt gains interest at 8% annually. Debtors may be liable for prejudgment if they can prove wrongful withholding on the part of the debtor.
Exemptions to garnishments and seizures are allowed in Colorado. The creditor cannot garnish more than 75% of wages. Homestead exemptions are allowed up to $30,000 outside of existing liens. Itemized items of property may be exempt up to various amounts depending on the class of property. For instance, the debtor may exempt up to $750 worth of clothing and up to $500 in jewelry. Child support payments are also exempt.
Debt Settlement is a way to manage debt that can help debtors avoid judgments and the subsequent interest without filing bankruptcy. Even after a summons is served, the Defendant may attempt to work out Debt Settlement options that allow quick, interest free payment of the debt.