Alliance Settlement helps Colorado residents negotiate unsecured debts like credit cards, personal loans and medical bills down to an amount they can afford. Before you decide, it helps to know how Colorado handles lawsuits, garnishment and old debts.
| Colorado debt facts at a glance | |
|---|---|
| Statute of limitations (credit cards) | 6 years |
| Wage garnishment for consumer debt | Up to 20% |
| Notable protection | Uniform Debt-Management Services Act |
Colorado's statute of limitations on debt
Colorado gives creditors 6 years to sue on most consumer debts. Keep in mind the clock limits lawsuits, not collection calls or credit reporting. Before paying on an old account, find out whether it's past the deadline.
What Colorado creditors can take from your paycheck
Colorado limits garnishment to the lesser of 20% of disposable earnings or the amount above 40 times the minimum wage. Garnishment requires a court judgment first, which is one reason resolving debts before a lawsuit matters.
Other Colorado consumer protections
Colorado requires debt settlement providers to register with the Attorney General and bars fees before a settlement is reached and a payment made.
How debt relief companies are regulated in Colorado
Colorado regulates debt settlement under its version of the Uniform Debt-Management Services Act, administered by the Attorney General. Under federal rules, debt settlement companies that sell services by phone can’t charge fees until they’ve settled or changed at least one of your debts and you’ve made a payment under that agreement. Ask any company how it is licensed or authorized to serve Colorado residents, and get every term in writing.
How debt settlement works with Alliance Settlement
- Review. We look at your unsecured debts and your monthly budget.
- Plan. We design a program around what you can realistically set aside.
- Negotiate. We approach your creditors with settlement offers as your savings grow.
- Finish. Accounts are settled one by one until your enrolled debts are resolved.
Settlement isn’t right for everyone. It can affect your credit and may have tax consequences on forgiven amounts. Learn more in does debt settlement hurt your credit?, or get a free consultation.
Frequently asked questions
How long can a creditor sue me for credit card debt in Colorado?
Colorado gives creditors 6 years to sue on most consumer debts. The statute of limitations limits how long a creditor can sue; it doesn't erase the debt or remove it from your credit report, where negative items generally stay up to seven years.
Can my wages be garnished for credit card debt in Colorado?
Colorado limits garnishment to the lesser of 20% of disposable earnings or the amount above 40 times the minimum wage.
Will debt settlement hurt my credit?
Usually yes at first, mostly because of missed payments during the program, but scores often begin to recover after accounts are resolved. Read our guide: does debt settlement hurt your credit?
Does Alliance Settlement work with Colorado residents?
Yes. Alliance Settlement works with clients throughout Colorado, including Denver, Colorado Springs, Aurora and Fort Collins, by phone and online.
This page provides general information, not legal or tax advice. Laws change; consult a qualified professional about your situation.