Colorado enacts bill modifying limits on certain debt collection activity

State Issues Covid-19 Colorado Debt Collection

On January 21, the Colorado governor signed SB 21-002, which modifies certain limitations on debt collection activity enacted in SB 20-211 (previously discussed here). Among other things, the bill extends, through June 1, 2021, the prohibition on 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) unless and until specified requirements are met. These requirements include 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.