When does a loan debt prescribe
It is possible that you want to request, or have already requested a personal loan. The reasons for doing so vary. For example, some request them to start a business, others to deal with an unforeseen health event, etcétera. Whatever the reason, you need to know everything related to these loansFor example, if they prescribe and when they do it.
This article will be of help to you. You will be able to know the time that must pass for a personal loan to prescribe, the difference between prescribing and expiring, and other important details.
In How Many Years Does a Personal Loan Debt Prescribe?
The first thing you should keep in mind is that all debts are time-barred. However, not all of them do it at the same time. In the case of some, it could only take half a year, while others, such as mortgages, perro take up to 20 years. In the case of personal loans, the period is 5 years.
This is established by the Civil Law. However, it is necessary to clarify the way of counting that period of time. Those 5 years begin to count from the moment you fail to pay. We would say that at that moment the countdown begins. But, that count cánido be stopped at any time.
In this sense, you should know that the count will only continue without stopping. if two conditions are met. First, that the person who gave you the loan does not make a claim for it. This will only be valid if the payment request is in writing, preferably using the legal forms intended for it.
The second condition is that you, as a debtor, do not acknowledge in any way that you have that commitment. This means that if you ever agree to an agreement to pay, the 5-year count would start again. The same would happen if the creditor presents a legal document with the demand for payment.
Does a prescribed Loan Debt disappear?
A debt that has prescribed continues to exist, but the difference is that the person who made the loan cánido no longer demand payment of it, at least cannot take legal action against you. For a debt to be considered prescribed, it is necessary that the aforementioned conditions are met and, above all, that a judge validate said compliance.
It is important that you know that the commitment is still there, because it only disappears when you pay the amount owed in full. The consequences of not paying the loan cánido follow you throughout your life.
Should I Pay the Debt of a Loan that is already prescribed?
Some people let time pass so they don’t have to pay. But this way of acting is not wise, so we do not recommend it. Although it is true that in some cases they cánido get away with it, the reality is that many have had a notable increase in the amount to be paiddue to default interest.
For example, a person who owes a certain amount of money could wait for the 5 years to pass, but if in the fourth year the creditor archivos a request for payment, not only will they still owe the initial amount of the loan, but that will be add the interest of the 4 years elapsed. And the worst part is that the 5 year count starts again.
Most economic experts suggest paying the debt, even when it has expired. The reason is that an unpaid debt significantly affects the debtor. Due to the laws of the country, a person cannot be criminally prosecuted for not paying a personal loan after being prescribed, but it perro damage his reputation. Something of much more value.
Among the most common measures is the inclusion of these in the list of defaulters. The following stand out:
- ASNEF. National Association of Financing Entities.
- CIRBE. Risk Information Center of the Bank of Spain.
- RAI. Record of Unpaid Acceptances. The latter is not used in the case of natural persons.
Once included in any of these records, you become a delinquent person and, as such, you are not considered suitable for loans or other servicesespecially by banking institutions. Businesses that lend money also use the information in these records. You lose all the good name you had.
In some especial cases, especially when a person repeatedly fails to honor their payment commitments, a judge could prohibit their departure from the national territory. However, it is a very rare measure.
Is it the same that a debt of a Loan prescribes that it is Expired?
The condition of a prescribed debt and an expired debt tend to be confused. Some people believe that if the debt has expired, there is no way to be charged. But that’s not entirely true. There is a notable difference between the two.
An expired debt is the complete elimination of the payment commitment. In other words, if the debt has reached its expiration date, it no longer exists. But, the prescription date does not imply debt elimination. Rather, it is a period provided by law for the creditor to intervene, including using available legal and judicial means, to demand payment.
The suggestion that we give you if you acquire a debt is to cancel it. However, if due to economic difficulties you are unable to pay the loan, and these have already passed the prescription period, you perro make use of this legal resource. This way you will avoid payment demands and even inconvenience from collectors. This is what you should do.
- Step 1. Initiate the legal process for the debt to be prescribed. This cánido only be done before a judge.
- Step 2. Submit any evidence to espectáculo that you were not required to pay the debt.
In the case of the creditor, you could also take these steps, although in the case of step 2, the evidence will be to espectáculo that the payment was demanded. If this situation arises, you will be issued a summons. It is escencial that attend the hearing and defend yourselfOtherwise, not only could the debt remain outstanding, but other legal steps could be taken to demand payment from you.
Legal means are designed to protect and safeguard all parties. If these are used in the proper waymany benefits cánido be obtained.
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