Limitation of claims (claims) is an institution aimed at disciplining the creditor. The idea is to make him responsible for recovering the debt and mobilize him to watch over his affairs.
On the other hand, it also protects the debtor in respect of whom no debt has been demanded. Although obligations should be regulated, it would seem unfair to sue someone after 20 years of silence over debt.
What is the limitation period?
The limitation period for claims does not fully allow the debtor to start “with a blank card”. Civil law stipulates that in certain circumstances and after a given period the claim ceases to be due. In short, this means that the debtor can no longer be prosecuted for the amount of debt in court.
For example, he cannot be required to settle subsequent installments. It is worth noting, however, that, as a rule, the limitation period for the debt relates only to its maturity and not to its existence.
In practice, this means that, although the statute of limitations for claims may be raised in court and by legal means, the creditor will not force the debtor to return the benefit, but the debt itself may, for example, be entered in the national register of debtors.
Entry in the register of debtors
Such an entry is a problem if we want to get a loan. As a rule, attempts are being made to prevent such an entry “against” a person whose debt has expired, but in the current legal form, such an option still exists. No information incompatible with the Act may be entered in the register, however, nothing regulates the issue of entering a statute of limitations.
Furthermore, if the creditor has sought an entry before the limitation period, he is not obliged to verify the entry after the limitation period. However, if the debt is repaid or expires, the creditor must change. If he does not report it, he may face serious financial penalties.
You should know that the expiration and limitation of debt are not the same. The expired debt still exists, although you can no longer have any claims against it that will support the state.
Can a debt collection company prosecute the debtor?
The specter that invariably pursued debtors has always been debt collection companies. Of course, there are many situations when the creditor is actually injured by a delay in paying the debt, it is hardly surprising that someone wants to recover the loaned property.
However, it cannot be denied that companies buying claim packages are associated rather with harassment of the debtor and a complete lack of understanding for the difficult situation in which he finds himself and which forced him to take out a loan. Unfortunately, such an opinion of debt collection companies results from the frequent pattern of their operation. They make multiple calls, conduct correspondence, and eventually, they resort to scaring the debtor.
Usually, all this takes place before the case is referred to the court, which in the order for payment procedure issues a payment order and then sends it to the debtor. It is worth adding that the entire procedure takes place without the participation of the parties, so the debtor cannot defend himself on an ongoing basis. It is only when he receives the order that he can lodge an objection, in which he often raises an objection of limitation.