The date that she acknowledged in writing that she owed this debt is going to be crucial -- especially if she said she intended to repay it. The writing doesn't need to be signed, e-mail will work
When was that?
I am sorry to have to tell you this, but the statute of limitations for breach of contract in Colorado is three years from the breach. The time to file a lawsuit would have been no later than May 31, 2006.
If this acknowledged the debt later and promised to pay it again (for example, by sending you an e-mail that said, "I'm sorry I haven't paid you back, I promise I will do so as soon as I can), that could restart the statute of limitations from the date the later promise was made. For example, if you got this kind of e-mail on January 1, 2008, the statute would not run until January 1, 2011.
Here is more information about statutes of limitations in Colorado: http://www.expertlaw.com/library/limitations_by_state/Colorado.html
I wish I had better news for you.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).