Question:
Hi, my friend has a judgment against her in Colorado. Our understanding is that the Statute of Limitation is 20 years. However, she is now a resident of Wyoming where from our understanding the limitation is 5 years. Which SOL is applicable? Colorado's where the judgment was entered into or Wyoming where she lives now?
Answers:
There are actually several sets of laws that are in play here.
The original judgment is rendered in CO where the statute of limitations is 20 years. This remains true regardless of where the debtor lives. However, the creditor is hamstrung on collecting it unless they domesticate the judgment into Wyoming. Once the judgment is domesticated into Wyoming, then it becomes, in essense, a new judgment in the state of Wyoming, and Wyoming's SOL goes into effect, without taking into account the years it was located in Colorado.
Therefore, your friend should not think that he/she is off the hook on the judgment. Unless the judgment is 20 years and 1 day old, AND the creditor has failed to renew the judgment, the judgment remains valid in CO.
Granted, the judgment cannot be pursued until domesticated into Wyoming. But the creditor has the discretion to do just that within those 20 years. When they do, the judgment has a new "shelf life" in Wyoming, and the creditor has the ability to collect on it for 5 years - or more. Remember, these judgments are renewable at the creditors discretion indefinately.
We know. We've collected on judgments well over their original statute of limitations!
Please advise your friend to pay off their judgment as soon as possible. Most judgments accrue interest at 10% per year, and avoiding the judgment by moving does not make it go away.
coloardo is 6yrs that someone who filed the judgement has to collect. if in that time they are unable to collect in that 6yrs. it is null and void.however. if she pays on it on the last day of the 6th year it renews it to 6more years.
It would be Colorado.
And here's the SOL's for Colorado...
Colorado Statutes of Limitation
Domestic and foreign judgments: 6 years and renewable each six years. Note: If for child support, maintenance or arrears the judgment (lien) stays in effect for the life the judgment without the necessity of renewal every six years.
All contract actions, including personal contracts and actions under the UCC: 3 years (C.R.S. 13-80-101), except as otherwise provided in 13-80-103.5; All claims under the Uniform Consumer Credit Code, except sections 5-5-201(5); All actions to recover, detain or convert goods or chattels, except as otherwise provided in section 13 -80-103.5.
Liquidated debt and unliquidated determinable amount of money due; Enforcement of instrument securing the payment of or evidencing any debt; Action to recover the possession of secured personal property; Arrears of rent: 6 years, (C.R.S. 13-80-103.5)
I will bow to DME's knowledge on this one..with one point. My source shows Colorado's SOL on judgments as :
Domestic Judgment
District Court-20 (renewable every 20)
County Court-6 (renewable every 6)
Don't know what the difference is between these two courts. Every state has different courts and procedures...where I live we have district and circuit (Small claims is part of District).
Wyoming is 5 years, but I'm not sure it's renewable. I looked at the statutes and they are confusing. But as DMW points out it doesn't matter.
The United States passed a law called the Uniform Enforcement of Foreign Judgments Act (see link below). Most of the states have adopted this act, which basically means a judgment from one state may be enforced in another state. So as long as it stays in Colorado it will remain active for 20 years. As soon as they want to take action they simply file a Foreign Judgment with Wyoming and then proceed to collect.
This is why judgments can really be nasty. If you want to play "chicken" with the collection agents it's up to you.but remember that as long as they follow the rules and the laws, they in effect have a much bigger car then yours, and you will lose every time.
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