Debt Prescription – Debts have deadline
In law, prescription is the loss of the term for exercising the right of action. That is, although the debt exists, the creditor no longer has the right to take action against the debtor to demand that the debtor pay what he owes.
All debts have a deadline to prescribe
This is in the name of legal certainty, so that people are not tied to each other forever because of a debt. That is, the debtor has an obligation to pay and the creditor the right to receive. But if the debtor does not pay, the creditor has the right to charge in court. If not, the court understands that it has no interest in receiving. If the lender wants to take action after the debt has expired, the debtor may refuse to pay. How can you ?! Even if the debt is prescribed, the debtor can repay what he owes, in good faith.
Another common confusion is believing that all debts expire in five years. It is a mistake. By the general rule, described in article 205 of the Civil Code, debts expires in 10 years, but there are several exceptions, cataloged in article 206 of the same code. Some debts expire in one year, such as claiming to charge lodging expenses or the insured charge of the insurer. In two years, they prescribe the debts resulting from alimony. In three years, the debts resulting from rent.
Already most of the day to day debts prescribe in five years
This is the case with taxes, credit cards, medical insurance, school debts, financing. These are the debts resulting from a contract between the parties. What is not described in the exceptions prescribes in 10 years. During this period can fit the bills of water, electricity, telephone, gas. However, there are decisions that these debts should also expire in five years.
Consumer Protection Code has also laid down rules in this prescription history
By Article 43, the name of debtors may not be blacklisted for more than five years on account of the same debt. As a result of this rule, the consumer who is dirty because of a debt that has already expired may require the immediate removal of his name from the register. The consumer must declare no prescription debt and may even claim moral damages. It is important to remember, however, that for a prescribe debt the lender should never have charged it. Once a creditor has filed a lawsuit to collect the debt, the prescription is stopped for as long as the action lasts.