The Colorado legislature has extended emergency protections from certain collections actions for individuals impacted by COVID-19. These protections were originally enacted in June, 2020 via Senate Bill 20-211. The original bill had an expiration date of November 1, 2020, but also contained a built-in extension option through February 1, 2021. Following this initial extension, the Legislature has now further extended the protections through June 1, 2021.
The legislation places strict limits on “extraordinary collection actions,” including writs of garnishment and execution, against individuals who have been impacted by COVID-19, including a requirement that notices be issued before undertaking certain collections activities. The text of the new Senate Bill 21-002, which was signed into law by Governor Polis on January 21, 2021, may be viewed here.
As part of its efforts to assist its small business clients in litigation matters, Werge Law also practices in the area of complex collections, including execution upon judgments and defending against the same. This past August, Tom Werge presented a continuing legal education course which examined Colorado’s emergency COVID collections protections and discussed its impact from the perspective of debtors, creditors, and practitioners alike. For further information, check out Tom’s CLE, available on-demand via the Colorado Bar Association.