We believe that a debt that has not been paid within a number of years can be prescribed. This is true in theory, but in reality, it rarely happens. The reason for this is that the limitation period for a debt is renewed every time you receive a reminder or claim from the creditor and it is very rare that the creditor will only leave the debt for several years without reminding the debtor. Of course, they are also fully aware of the limitation period.
Debt limitation period
We at Good Lending Finance will now go into depth with regard to this with debt limitation and limitation time. Let’s start by looking at what the limitation time looks like:
- The limitation period for credit debts, such as bank loans, account loans, sms loans and other fast loans, is 10 years. This also applies to debts to other private individuals.
- When it comes to the limitation period for consumer claims, it is 3 years. It is then usually about debts to a trader, for example a shop.
- The limitation period for liabilities to the state is of course the longest, it is certainly only 5 years, but when it comes to, for example, tax liabilities, the limitation period can be extended without any problems. Yes, all debts to be paid to the state tend to be the worst for the consumer, both in terms of limitation and penalties.
- Liabilities to the Road Insurance Association (ie the traffic insurance charge) are not prescribed until after 10 years.
But the limitation period is renewed in the event of a limitation
So does this mean that if you have a debt that you have not paid in under 10 years then you do not have to pay it? The answer is no, it almost never happens because a new limitation period starts to run if one of the following two options is met:
- The creditor (the creditor, for example, the bank or the credit company) sends out a reminder or a claim to you before it is 10 years old (the same applies if you have a consumer claim and receive a claim or a reminder within 3 years). When the creditor does this, a new limitation period begins. For example, if you received a debt on January 1, 2015, the debt would be prescribed on January 1, 2025, but if you received a reminder in January 2017, the limitation period runs until January 2027 instead and so on. As you probably understand, it is rarely, or rather never, a creditors allow the debt to be prescribed and therefore it is virtually impossible to get a debt defaulted due to limitation.
- You acknowledge the debt, which means you pay interest and / or repay it, or ask for a repayment plan. Just keep in mind that even if you have not met this requirement, the debt will not disappear if you receive a reminder or a requirement.
If your debt is prescribed
If your debt against the presumption would be restricted (ie you have not received a reminder or claim and do not pay on your debt or have requested a repayment plan during the limitation period) and you receive a payment order from enforcement authority, you can dispute the claim. You do this directly at enforcement authority as soon as possible but if the person who demands you for money thinks you are wrong, the case goes to court. If the creditor has applied for enforcement of the debt collection at enforcement authority and you believe that the limitation applies, you should immediately object to this.