The general expiration limit of debt is 3 years
Debts collected from consumers by businesses that are based on granted credit or purchased goods or services are called consumer receivables.
Consumer receivables include loans, debts arising from instalment contracts and payments associated with the purchase of goods or services.
Debt expires when the creditor has not collected it or exercised his rights to receive it within the time limit specified by law or an agreement.
- As a rule, debts expire 3 years from the due date or date of delivery.
- Debts expire in 5 years if a court order or other debt recovery order has been given on them.
Expiration period starts over if the creditor interrupts the expiration
Creditors can generally interrupt the expiration of consumer receivables.
- The interruption of expiration of debt means interruption of the expiration period
- After the interruption, a new expiration period of equal duration commences, which can again be interrupted
If the expiration period can be interrupted, it will be interrupted when
- the creditor reminds the debtor of the debt and has evidence that the debtor has received this information
- the creditor takes action to start debt recovery proceedings on the debt and the debtor has received information about the commencement of action.
Please note! Action taken to start debt recovery proceedings will interrupt the expiration period. The expiration period will remain interrupted while the recovery proceedings are pending, and for one year after the end of the pendency
- the debtor takes legal action to collect the debt or secures a claim in debt adjustment or bankruptcy proceedings
- the debtor recognises the existence of the debt for example by paying part of it or by agreeing on a payment plan
Debts generally expire permanently in 15 years
A consumer's debt to a business generally expires permanently when 15 years have elapsed from the grounds for debt recovery.