9:00 - 5:00
Our Opening Hours Mon. - Fri.
Call Us For Free Consultation
Menu
Winning a lawsuit is a significant victory, but for creditors, the process doesn’t end there. A court judgment confirms that a debt is owed, but it does not automatically ensure payment. Creditors must take further action to collect, and timing is critical. Colorado law provides a limited window for enforcing judgments, meaning creditors must act before their rights expire.
Understanding how long you have to collect a judgment in Colorado and the legal tools available can make the difference between recovering what is owed and losing the opportunity forever.
In Colorado, creditors have six years to collect a judgment before it expires. This six-year period begins on the date the judgment is entered by the court. During this time, creditors can take enforcement actions such as wage garnishments, property liens, or bank levies to recover the owed amount.
However, allowing a judgment to sit idle for too long can be risky. Debtors may move assets, change jobs, or relocate, making collection efforts more difficult. Creditors should actively monitor debtors’ financial situations and begin enforcement efforts as soon as possible.
While the six-year statute of limitations might seem restrictive, Colorado law allows judgments to be extended beyond this initial timeframe. If a creditor takes the necessary steps before the expiration date, the judgment can remain valid indefinitely.
Colorado allows creditors to renew a judgment before the six-year period expires. This process extends the judgment for another six years and can be repeated indefinitely, as long as the renewal is filed in time.
To renew a judgment, a creditor must:
Failure to renew a judgment before the deadline means the creditor permanently loses the right to enforce it. Once expired, a judgment cannot be reinstated, and any unpaid debt is essentially uncollectible. Keeping track of judgment expiration dates and filing timely renewals is essential for long-term debt recovery.
Once a judgment is obtained, creditors have several legal tools available to collect the debt. These enforcement methods vary based on the debtor’s financial status, employment situation, and available assets.
Wage garnishment is one of the most common methods of enforcing a judgment. This process allows creditors to deduct a portion of a debtor’s wages directly from their paycheck. In Colorado, state law limits the amount that can be garnished to:
If the debtor is already subject to another garnishment, such as child support, the available garnishment amount may be reduced.
A bank levy allows creditors to seize funds directly from the debtor’s bank account. Once the levy is issued, the bank is required to freeze the debtor’s account and transfer the available funds to the creditor, up to the amount of the judgment.
Timing is critical with bank levies, as debtors may attempt to withdraw funds before the bank can enforce the order. Additionally, some funds, such as Social Security benefits, may be exempt from seizure under federal law.
Creditors can place a lien on a debtor’s real estate, which prevents them from selling or refinancing the property without satisfying the debt. A judgment lien can be placed on:
Even if a debtor is not currently planning to sell their property, a lien ensures that the judgment will be paid before ownership can transfer in the future.
In some cases, creditors may be able to seize personal property to satisfy a judgment. This can include:
Seizing assets often requires additional legal steps, such as obtaining a writ of execution from the court. Once issued, law enforcement officials may be involved in seizing and selling the property at auction.
Many debtors mistakenly believe they can avoid payment by ignoring a court-issued judgment. However, once a judgment is in place, creditors have legal authority to pursue collection efforts. Ignoring a judgment does not make it disappear.
In cases where a debtor actively attempts to avoid payment, a creditor may seek additional court actions, such as:
Debtors who fail to respond to legal proceedings risk having their wages, bank accounts, and property targeted for enforcement. While some exemptions exist, creditors generally have significant power to ensure payment.
Many creditors make the mistake of waiting too long to enforce a judgment, assuming they have plenty of time to collect. However, delays can work in the debtor’s favor. Over time, a debtor’s financial situation may change, making it harder to locate assets or enforce collection actions.
Additionally, Colorado’s six-year statute of limitations means creditors must remain aware of the expiration date. If a judgment is left unrenewed, it becomes worthless, and the creditor permanently loses their right to collect.
Acting promptly and using legal tools strategically can improve the chances of successful collection. Working with an experienced attorney can also ensure that no enforcement options are overlooked.
If you have a court-issued judgment in Colorado and need assistance collecting what you’re owed, our collections attorneys can provide the legal support necessary to take effective action. Whether you need to garnish wages, seize assets, or place liens, we can help determine the best strategy for your situation.
Don’t risk missing your opportunity to collect—judgments have time limits, and acting sooner rather than later can make all the difference. Contact us today to discuss your options and begin the enforcement process.
