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The statute of limitations for property claims is governed primarily by the Civil Code Act of April 23, 1964. The statute of limitations means that after a statutorily defined period of time, an obligation generally cannot be asserted through court or enforcement. Does the debt disappear in such a case? Definitely no.
Limitation periods
As a rule of thumb, property claims are time-barred after the expiration of a certain period indicated by law. A time-barred debt DOES NOT expire, but only cannot be asserted in court or in enforcement proceedings.
The Civil Code provides for two main statutes of limitations:
- 6 years – is the basic statute of limitations for property claims, unless otherwise provided by law,
- 3 years – is the statute of limitations for claims for periodic benefits (e.g., rent) and for claims related to the conduct of business (e.g., for repayment of a loan or credit granted by a businessman).
However, it turns out that the legislator has provided for numerous exceptions to the general time limits described above. Below are examples of these:
- 1 year – is the basic statute of limitations for claims under contracts of carriage,
- 2 years – applies to contracts of sale made by entrepreneurs, contracts for work, and for remuneration or reimbursement of expenses from contracts of mandate in the case of persons who permanently or within the scope of their business activities engage in activities of a given kind.
It is worth remembering that in most cases the end of the limitation period for a claim is the same as the last day of the calendar year in question, except for limitation periods of less than two years. The statute of limitations itself usually begins to run, starting from the day on which the claim became due, that is, most often from the day on which the deadline for its payment specified in the agreement with the creditor has passed. However, it is important to know that special provisions (e.g., on a contract of carriage or a contract for work) may provide for a different starting point of the statute of limitations. In addition – if the maturity of a given claim depends on the authorized person taking a certain action, the first day of the running of the statute of limitations begins from the day on which such claim would have become due if the authorized person had taken an action at the earliest possible time.
If a claim is established by a final judgment of a court or other body appointed to hear cases of a given type, or by an arbitration court decision, as well as a claim established by a settlement reached before a court or before an arbitration court, or by a settlement reached before a mediator and approved by a court – the statute of limitations shall expire after 6 years. However, if the claim so established includes periodic benefits (e.g., interest), the claim for periodic benefits due in the future is barred by the statute of limitations of 3 years.
What affects the running of the statute of limitations?
The legislator has provided for situations that can have a real impact on the running of the statute of limitations.
The course of the statute of limitations does not begin, and the one that has begun is suspended:
- as to claims that accrue to children against parents – for the duration of parental authority;
- as to claims that accrue to persons without full legal capacity against persons having custody or guardianship – for the duration of such persons’ custody or guardianship;
- as to claims that accrue to one spouse against the other – for the duration of the marriage;
- as to any claims where, due to force majeure, the claimant is prevented from pursuing them before a court or other body appointed to hear cases of the type in question – for the duration of the obstacle;
- as to claims covered by a mediation agreement – for the duration of the mediation;
- as to claims covered by a request for a settlement attempt – for the duration of the conciliation procedure.
The Civil Code also specifies situations in which the statute of limitations is interrupted. This will happen:
- by any action before a court or other body appointed to hear cases or enforce claims of a given type or before an arbitration court, taken directly to assert or establish or satisfy or secure a claim;
- by recognition of the claim by the person against whom the claim is made.
After each interruption, the statute of limitations runs anew. On the other hand, if the statute of limitations is interrupted by action in proceedings before a court or other body appointed to hear cases or enforce claims of a given type or before an arbitration court, the statute of limitations does not run anew until such proceedings are completed.
The statute of limitations with respect to a person who does not have full legal capacity (i.e., for example, a minor or an incapacitated person) cannot end earlier than the expiration of 2 years from the appointment of a legal representative for him or from the termination of the reason for his appointment. However, if the statute of limitations is shorter than 2 years, it shall run from the date the legal representative is appointed or from the date on which the reason for his appointment ceases. These rules apply mutatis mutandis to the running of the statute of limitations against a person for whom there is a basis for his total incapacitation.
Other circumstances related to the statute of limitations
After the expiration of the statute of limitations, the one against whom the claim is due may waive the claim, unless he waives the exercise of the statute of limitations. However, such waiver is invalid if the statute of limitations has not expired and it is still running in the eyes of the law.
However, in the case of claims against a consumer, after the expiration of the statute of limitations, satisfaction of such a claim may not be sought through court or enforcement.
It is worth remembering that in exceptional cases, the court may disregard the statute of limitations against a consumer, if equity so requires. In making such a decision, the court should consider in particular:
- the length of the statute of limitations;
- the length of the period between the expiration of the statute of limitations and the assertion of the claim;
- the nature of the circumstances that caused the claimant’s failure to assert the claim, including the impact of the obligor’s behavior on the creditor’s delay in asserting the claim.
The time-barred obligation must be paid
The statute of limitations on a claim does not cause the debt to cease to exist. Still, the debtor should bear in mind that:
- the debt may increase by interest for late payment,
- the creditor may take measures to recover the debt amicably,
- the creditor may provide information about the unpaid liability to the business information bureau, if the conditions set forth in the Act of April 9, 2010 on sharing business information and exchanging business data have been met. This can result in problems, for example, in taking a loan or making installment purchases,
- sell the debt to another person, including through the so-called debt exchange.
BEST S.A. helps to solve the problem of debt.
We discuss the most important issues concerning the statute of limitations for property claims. If you are a debtor and you are approached by a representative of the BEST S.A. debt collection company, then know that we want to offer you a good solution for getting out of debt.
Our Advisors will explain the issues related to the possible statute of limitations and answer any questions you may have about the obligation handled by BEST S.A., as well as help you work out the best way to pay off your debt.
