Colorado enacts bill limiting certain debt collection activity

State Issues Covid-19 Colorado Debt Collection

On June 29, the Colorado governor signed Bill 20-211, which places limitations on certain debt collections. Among other things, the bill prohibits a judgment creditor from initiating a new extraordinary collection action (i.e. a garnishment, attachment, levy or execution to collect or enforce a judgment on a debt) from the date of the bill through November 1, 2020, unless certain requirements set forth in the bill are met. These requirements include, but are not limited to, providing at least 10 days advance written notice to the debtor of their right to temporarily suspend the collection action if they are facing financial hardship due to the Covid-19 emergency.