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Forcam Lawyers > When Do High Debts Expire And Prescribe In Spain

When do high debts expire and prescribe in Spain?

Debts
When do high debts expire and prescribe in Spain?

When do high debts expire and prescribe in Spain?

In Spain, debts prescribe and expire depending on the type and term established by law. The most common prescription and expiration periods for different types of debts are detailed below: 

  • Debts of a general nature: The statute of limitations for general civil and commercial debts is 5 years. This means that if a creditor has not claimed payment of a debt in the 5 years following the date the debt became due, the debt will expire and the creditor will lose its right to claim it.
  • Mortgage debts: In the case of mortgage debts, the prescription period is 20 years. This is because the mortgage loan is backed by real estate and, therefore, the statute of limitations is longer than for other debts.
  • Labor debts: In the case of labor debts, the statute of limitations is 1 year. This includes debts for wages, compensation and any other amount owed to the worker.
  • Credit card debts: Credit card debts prescribe after 5 years. This period begins to count from the last time a payment was made or from the debtor's recognition of the debt.

Can the prescription of a debt be interrupted?

It is important to take into account that, in some cases, the prescription of a debt, whether high or not, can be interrupted. This means that the limitation period starts again from zero. For example, if the creditor files a legal claim to claim payment of a debt, the limitation period is interrupted and starts counting again from the moment the claim is filed.

In short, the statute of limitations for a high debt varies depending on the type of debt and is established by law. It is important to know these deadlines to avoid a debt prescribing and losing the right to claim your payment. 

In Catalonia, and in the other Autonomous Communities, for their part, the limitation period for high debts follows the same rules as in the rest of Spain, that is, it is regulated by the Civil Code and other applicable laws depending on the type of debt.

As in the rest of Spain, the prescription of a debt can be interrupted in Catalonia, as in the rest of Spain. This translates into that, if the creditor files a lawsuit to claim payment of a debt, the limitation period is interrupted.

How can the limitation period of a high debt be interrupted?

The prescription of a high debt can be interrupted, which means that the prescription period starts counting again from zero. Below are some common forms of interruption of the prescription of a debt: 
  • Acknowledgment of the debt: If the debtor acknowledges the existence of the debt, the limitation period is interrupted. This acknowledgment can be express, through a written or verbal declaration, or tacit, through the payment of part of the debt or the performance of an act that implies the willingness to pay the debt.
  • Legal claim: If the creditor initiates a legal action to claim payment of the debt, the limitation period is automatically interrupted. The filing of the claim or its notification to the debtor are sufficient to interrupt the limitation period.
  • Extrajudicial recognition: If the creditor sends the debtor a written communication in which the existence of the debt is recognized and its payment is requested, the limitation period is interrupted. This communication must be clear and unambiguous and must be sent in writing, for example, by registered letter.
  • Waiver of prescription: If the creditor waives the prescription of the debt, the prescription period is interrupted. This waiver must be express and can be done verbally or in writing.

It is important to note that the interruption of the prescription does not necessarily imply that the debt must be paid immediately. It simply means that the statute of limitations resets and starts counting again from zero. 

As expert debt lawyers comment, it is important to note that the statute of limitations can only be interrupted once. If the debt is not paid after the interruption of the limitation period, the limitation period will start again from where it was interrupted the first time.

What are the legal measures to break the prescription of a high debt in Spain?

In Spain, the prescription of a high debt implies that, after a certain period of time, the creditor's right to claim payment of the debt expires and, therefore, the debtor is no longer obliged to pay it. The legal measures to break the statute of limitations on a debt in Spain depend on the nature of the debt and other factors, such as the statute of limitations and the circumstances of the case.

Remember that, as we have discussed in other posts, if they owe you a lot of money and you want to claim a debt, you have a wide range of legal measures and strategies to recover the high debt as soon as possible. In case it is of interest for your reading, we leave the post here

In general, there are two main ways to interrupt the prescription of a debt in Spain:

  • Acknowledgment of the debt: In this case, if the debtor admits the existence of the debt in question and accepts his obligation to pay it, the prescription is automatically interrupted. As a general rule, the acknowledgment of a debt is made in writing; although it can also be formalized verbally. In either of the two formalities, the acknowledgment of the debt by the person involved must be clear and not give rise to an erroneous interpretation.
  • Filing of a lawsuit: if the creditor files a lawsuit against the debtor before the prescription is complete, the prescription is automatically interrupted.
It is important to bear in mind that, in many cases, the prescription of a debt can be the subject of legal debate and that it may be necessary to consult a law firm experienced in high debts, such as Forcam Lawyers, to obtain legal advice specific, and also be able to claim the debt in full. In addition, the limitation period for a debt varies depending on the nature of the debt, so it is important to know the terms applicable to each specific case.