Thursday, 10 July 2014

Possible limitation of credit

Property claims lapse - limitation may therefore also apply to the loan. In which case, the borrower may refuse to meet claims - repayment of the loan? What raises the statute of limitations?

Most of the property claims become time-barred after 10 years. Does not apply to loans taken from financial institutions. In their case, the claim is related to economic activity, so in accordance with Article 118 of the Civil Code, the limitation period is three years here. Importantly, this applies not only borrowed capital, but also of interest.

How do you count?

The three-year period is counted from the date of maturity, which is indicated date of payment, the debtor (borrower) had to settle the debt. However, given the specificity of loans should be added that they are spłacanymi obligations in installments, and hence, each installment has a different maturity, or simply put the payment deadline. The result is that each installment will also have separate limitation periods - for each of the installments will always be a three-year period counted from the date on which the installment was to be settled. An exception is the only situation in which the credit agreement was terminated - indicated maturity of the entire debt resulting from the contract. In this case, the limitation period is counted from the date indicated in the notice as the date of repayment of the loan.

Interruption of the limitation period

The three-year period of limitation shall become effective only if the lender (creditor) has not taken during this period no action lead to the recovery of debt, eg initiation of enforcement proceedings brought before a declaration of enforceability of a bank writ of execution, or an instance of pursuing civil remedies . Each of these activities will make the running so far, the limitation period shall be interrupted and will have to be re-started in the full three-year course. To interrupt the limitation period will also if the debtor (borrower) certifies, or its operation will be indicated that he considers the claim to be existing, for example, ask the borrower for deferral.

The application of the statute of limitations, however, does not make it so to speak - the debt disappears. Although the creditor will not be able to enforce it, the debt will continue It showed for example, lists the Credit Information Bureau. This will prevent incurring further credit liabilities benefiting from the limitation.

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