Often, it may seem that time-barred debt is not something we need to worry too much about. Enough time has passed since its creation, and the debtor was “baked”. However, the reality does not always look like this, and the creditin some situations may claim an expired debt.
Debt enforcement and its avoidance
First of all, the creditor may submit to the court an enforcement application, including an enforceable title. As a result of his actions, the creditwill be forced to start enforcement. Interestingly, examining the legitimacy and feasibility of such an application is not at all within the scope of the activities for which the credithas been authorized. Moreover, the source of the discussed application is not known to him, and the only checking action undertaken is to check whether the application has formal deficiencies. Therefore, it is in the debtor’s interest to check that the debt to be enforced is not time-barred.
Although the situation seems difficult, the debtor has the opportunity to defend against debt enforcement. Its basic method is an anti-enforcement action. It is brought to court by the debtor, after which the court examines the legitimacy of enforceability of the claim. The most desirable judgment in this situation by the debtor is the one about the withdrawal of enforceability of an enforceable title due to the limitation period of the debt or the interest accrued. Of course, this does not mean that the debt itself disappears, but it is not possible in this situation to force the debtor to pay it. Here it should be borne in mind that the limitation periods for the debt and the interest on it vary. In the case of debt, it lasts a long time, as much as 10 years. In the case of interest, it is shorter because it amounts to only three years.
What should the debtor remember?
When analyzing the situation of a debtor burdened with time-barred debt and trying to defend himself against its execution, there are three main issues to keep in mind. First of all, an anti-enforcement action must be brought by the debtor – neither the court nor credits will themselves check the legitimacy of the enforcement request, including the writ of execution. Only the debtor’s actions can lead to a situation in which enforcement will not take place due to the limitation period, which will result in the decision on the withdrawal of enforceability of the enforceable title. If there is a situation in which the debtor repays the expired claim, he will not be able to recover it later. With this in mind, you need to be attentive and take active steps to protect your interests.
Secondly, an anti-enforcement action must be lodged with a court and not with a bailiff, because it is within the scope of the court to decide on the legitimacy of an enforcement application and the writ of execution. The creditis not competent to investigate this type of issue.
Thirdly, it should be remembered that the limitation period may be interrupted if the debtor takes action to cause the interruption. These are usually all actions aimed at repayment of the debt held.
Debt has expired does not cause it to disappear
Nor does it automatically mean that it cannot be enforced. If the creditor decides to submit an application to the court for enforcement along with an enforceable title, the credit will take action to recover the debt. In such a situation, the best advice for the debtor is to take the initiative and file an anticompetitive action with the court. Such a move should lead to a situation in which the court decides to revoke the enforceability of an enforceable title due to the limitation period of the debt. Such a judgment will not make the debt disappear, but the debtor will not be able to pay it.