Medical debt and credit reports in Colorado
Colorado law limits when some medical debt can be reported to credit bureaus.
A credit bureau may not include in a credit report any negative information it knows or should know is about medical debt.
Checked against official sources: October 30, 2026.
The rule in Colorado
Partial limit
A credit bureau may not include in a credit report any negative information it knows or should know is about medical debt. The only exception is a report used for a very large loan (above the national conforming loan limit for a one-unit home). A collector's first letter must tell you about this rule. This rule is set to end on July 1, 2028 unless the legislature extends it.
Who the rule covers: Credit bureaus (consumer reporting agencies); collectors also may not falsely say a medical debt will go on your credit report
In effect since: August 7, 2023
Law: C.R.S. 5-18-109(1)(f), (2); C.R.S. 5-16-105(3)(e); C.R.S. 5-16-107(1)(r)
Other limits on collection in Colorado
- Waiting rules
For hospital bills, no one collecting the debt may take a collection step that needs a legal or court process (for example placing a lien on property, freezing or seizing a bank account, or garnishing wages) until 182 days after the date you received the hospital care. Foreclosure on your home is never allowed for hospital bills. Before sending your bill to collections or taking those steps, the hospital must screen you, give you any discount you qualify for, explain the bill in plain language, bill your insurance, and send you a notice at least 30 days ahead with information on discounted care. A collection agency must wait 30 days after its notice or until the validation period ends, whichever is later. If you have an established discounted-care payment plan, these steps can start only after you miss three payments in a row without asking for a deferral, and the provider must notify you at least 30 days before starting them. If you told a provider about your insurance within 30 days after care and insurance paid only part, the provider must mail you a notice at least 30 days before sending the balance to a collection agency. While an insurance appeal is pending, or was pending in the last 63 days, a collector may not report the debt, contact you to collect, sue you or sell the debt.
- Liens on your home
No one may start foreclosure on your primary home (including a mobile home) to collect a debt for hospital care. Other liens on property for hospital bills must wait 182 days after the care and require court action.
- Wage garnishment
For hospital bills, wage garnishment must wait 182 days after the care and the other notice steps. For any debt, no more than 20% of your weekly disposable earnings may be taken, and none of the amount below 40 times the state or federal minimum hourly wage; you can ask the court to protect more if you need it for basic living expenses.
- Selling the debt
A hospital debt may be sold only under a written agreement in which the buyer agrees never to foreclose on your home, to return the debt if you should have received discounted care or public coverage, and to make sure you never pay more than you owe. A collector may not sell a medical debt while an insurance appeal is pending.
- Lawsuit rules
Anyone suing you on a medical debt must attach a redacted itemized list of the charges to the complaint. Before a default judgment, the plaintiff must file business records showing the original creditor, account number, amount and itemization, last payment and the date the debt arose; an affidavit alone is not enough.
- Bank account
For hospital bills, freezing or seizing a bank account must wait 182 days after the care. Up to $2,500 in your bank accounts is exempt for any debt.
Law: 10 CCR 2505-10 sec. 8.926; 6-20-201(5), (7)
Is my debt too old in Colorado?
| Kind of agreement | Time limit to sue |
|---|---|
| Written contract | 6 years |
| Open account | 6 years |
A lawsuit to recover a debt or a set amount of money owed must be filed within 6 years. Other contract claims generally have 3 years.
- What can restart the clock
A new promise or acknowledgment counts only if it is in writing and signed by you. The law says this rule does not change the effect of a payment of principal or interest.
- When the clock starts
A claim for a debt starts when the money becomes due. A claim for the balance on an open account for goods or services starts on the date of the last item or service on the account.
Law: C.R.S. 13-80-103.5(1)(a), 13-80-101(1)(a), 13-80-108(4)-(5), 13-80-113
A time limit to sue can differ by kind of agreement, and when it starts and what restarts it can differ; a court decides.
Where to complain in Colorado
- Hospital bills and financial assistance: Department of Health Care Policy and Financing (HCPF), Hospital Discounted Care · 303-866-2580
A hospital or professional did not screen you, charged more than the discounted rate, did not offer a proper payment plan, did not give you the patient-rights notice, or sent your bill to collections without the required steps. - Health insurance: Colorado Division of Insurance, Consumer Services · 303-894-7490
A surprise out-of-network bill, an ambulance bill under a state-regulated plan, or another problem with health insurance regulated by the state. - Debt collectors: Colorado Attorney General, Consumer Credit Unit
A collection agency or debt collector broke Colorado collection rules, for example on medical debt credit reporting, itemized statements or interest. - Medicaid: Health First Colorado (Colorado Medicaid) · 1-800-221-3943
Questions about applying for Medicaid or CHP+, which can cover hospital bills.
Questions about medical bills in Colorado
Can medical debt be reported to credit bureaus in Colorado?
Colorado law limits when some medical debt can be reported to credit bureaus. A credit bureau may not include in a credit report any negative information it knows or should know is about medical debt.
How long can a medical bill be collected or sued on in Colorado?
A lawsuit to recover a debt or a set amount of money owed must be filed within 6 years. Other contract claims generally have 3 years.