The issue of limitation of debts with a credit is quite a complicated issue. In its context there are many provisions, important deadlines and possible solutions. However, getting to know them is the only way to avoid unnecessary stress and serious consequences.
Loss of job, serious illness or family problems – these are just examples of situations that can make it difficult or impossible to pay off your obligations. In this case, it is important to talk to the bank, loan company or other creditor or the debt collection company representing it as soon as possible. If the indebted person clearly does not intend to cooperate, avoids contact or explicitly refuses to pay the debt, the case usually goes to court, and ultimately to the credit.
In order for a case to be found on the way to enforcement proceedings, it must first be judicial. If the bank or other creditor has not brought the claim to court and a valid order, with an enforcement order, payment order has not been issued, the credit will not start enforcement actions. It is only after these conditions are met that an enforceable title is created and enforcement can be initiated.
The credit conducts activities that are aimed at enforcing claims against the creditor from the debtor’s assets. His proceedings therefore have an executive role in relation to the court proceedings. As part of enforcement proceedings, he only executes a court decision and has no right to assess the legitimacy of the obligation covered by an enforceable title. This means that the debtor has no chance to convince him to refrain from enforcement activities.
The credit may carry out, inter alia, remuneration, bank accounts, owned property rights, as well as movable and immovable property. To perform his duty and seize individual assets, he uses coercive measures provided for by law. Enforcement is a compulsion, but it is worth remembering that it only occurs when the debtor does not pay the debt despite the issuing of a court enforcement order.
You can have a debt at a bank, loan institution, telecommunications company, Social Security Institution or housing association. Importantly, the type of debt you have determines when it can be barred.
Under current rules, claims expire in principle after six years, but there are quite a few exceptions to this rule. In the case of indebtedness resulting from periodic benefits and from conducting business activity, a much shorter, 3-year limitation period applies; the aforementioned term therefore applies, inter alia, to credit and loan agreements, rent, telephone and Internet charges. After a year, however, the debts for free-riding will be barred, and after two years unpaid debit in the bank account.
Regardless of the basis on which the debt arose, when the case goes to court and is confirmed by a final judgment or order for payment, a limitation period of 6 years will apply. In other words, in the case of proceedings ended by a final judgment, the 6-year limitation period covers, in principle, all debts: bank, telecommunications, to USD and others. Interest accrued for the period after the final judgment has been issued expires after 3 years.
Both in the case of interest and the main debt, the limitation period is counted from the date on which the judgment becomes final.
The enforcement order may be barred after 6 years, but in practice, the limitation of the debt by the credit, in the literal sense, is not possible at all. This is due to the fact that in the period from the date of commencement of enforcement proceedings to the day of its termination, the limitation period is suspended. Therefore, the debtor cannot count on the fact that sooner or later, due to the impossibility of enforcing claims, the credit will be barred and his case closed. If the credit decides to discontinue enforcement, a new limitation period of 6 years will apply. In principle, it is certain that before its expiry the case will be referred to the credit again, which will interrupt the limitation period.
Maintenance debtors may wonder whether the above principles also apply to the issue of limitation periods for maintenance by a credit. Their doubts may result from the fact that we are talking about a periodic commitment, and at the same time provided to a private person, usually their own child or another family member. In practice, however, these issues are not relevant and the law protects well-entitled maintenance. If the case goes to the credit, limitation of maintenance is practically impossible – in the event of any ineffective execution, the proceedings will be resumed after some time and the limitation period will be interrupted.
Some debtors expect the statute of limitations to end the case and to avoid financial liability. However, as the overdue debt still exists, the creditor still has the right to use tools that mobilize the debtor to pay. For example, if he has not already done so, report his details to the registers of debtors kept by economic information bureaus. An entry to the BIG means that the debtor may forget about a bank loan, installment purchases, and sometimes even the conclusion of a telephone contract or renting an apartment (if the landlord checks it in the register). Therefore, even a possible limitation of the bank debt from the credit or any other liability does not solve all problems.
Information about any financial difficulties should be directed to the creditor or the debt collection agency representing it. It’s a good idea to decide on an honest conversation as soon as possible. Thanks to this, you can count on understanding and obtaining new, favorable terms of debt repayment.