Limitation of debts – regulations, in what situations, after which time, is each debt barred?
Sometimes it happens that we get into debts that we are unable to pay. How to get out of this position? Is it worth waiting for the commitment to be overdue? Maybe it is better to pay back the debt?
Limitation rules for debts
The limitation of debts is regulated by the provisions of the Civil Code. According to the notion of debt being time-barred, it is possible to avoid having to pay the debt after a certain period.
After this deadline, the debtor is released from his obligations. Debt does not disappear, but the debtor is not obliged to pay the debt. The creditor may still be entitled to pay, but the chance of recovery is small.
What debts expire?
The expiry date is different for different types of debt. Debts over bank debits and debts in telecommunications services expire after two years. Credit card debt, limitation of credit and loans, rent debt, maintenance payments, as well as an unpaid security deposit or advance barred after 3 years. All debts arising under the law, such as income tax or VAT expire after five years.
How long does the debt expire?
From July 9, 2018, new debt limitation rules apply. Thanks to the amendment to the Civil Code, debts do not expire after 10 years, as it was until now, but expire after 6 years. Claims for periodic benefits or in connection with business activities expire after 3 years.
There are many types of claims and each type of claim is subject to a different limitation period. There are also many details that influence specific solutions.
Are you safe after limiting your debts?
Limitation of debts does not mean their expiry. It only means that after a certain period of time has elapsed, the indebted person may avoid paying his debts. Despite the statute of limitations on the debt, the creditor may still contact the person in debt and carry out debt collection proceedings amicably, thanks to which the debtor will voluntarily pay the debt. We must remember that limitation does not result in debt cancellation.
The creditor has the right to place the debtor in the Credit Information Bureau, in which clients of telecommunications operators or clients of banks are verified. Another way to put pressure on the debtor is to sell the debt to another entity that will continue to collect.
What debts are not time-barred?
It is worth remembering that not all debts expire. An example of such a debt is a mortgage, where only interest expires. If the customer does not pay the debt, a bailiff’s auction takes place, thanks to which the bank will obtain part of the unpaid liability.
Get money to cover your debts
Is waiting for the statute of limitations a good option? It’s definitely many years of stress and sleepless nights. A much more beneficial solution is to get out of old commitments and open a new card in life. How can you get out of such problems? One solution is a loan to get out of debt. It is a solution that will allow you to settle your obligations.
Extra money to cover your debts will help solve existing problems and free you from thinking about a bailiff’s visit. Take a quick loan with Sam Weller Now in max. 3 minutes using the convenient form on the page.