Creditor’s Rights, Bankruptcy

In Colorado, you typically have six years to file a claim to collect a debt. This time limit is called the statute of limitations and applies to most claims. Once the statute of limitations expires, the debt is considered “time-barred,” meaning you cannot take legal action to collect the debt. However, if you convince the debtor to pay on the time-barred debt, the statute of limitations will reset, enabling you to resume collection efforts. 

A collection claim is a legal action taken by a creditor to collect an unpaid debt from a debtor. If someone owes you money and refuses to pay, you can file a collection claim in court. Obtaining a judgment against the debtor will require them by law to pay the debt. 

A loan workout is an agreement between the lender and a borrower to modify the terms of a loan. This typically involves rescheduling payments or extending the repayment period to make it easier for the borrower to meet their obligations.