The statute of limitations on debts is a topic that can seem convoluted and difficult to understand for many people. Some may even believe that debts that are time-barred cease to exist and their collection is pointless. In this article, we will outline the legal issues and certifying arguments as to why it is not worth delaying debt collection.
1. The statute of limitations does not mean the abolition of the debt
The first misconception is that the statute of limitations on a debt means its disappearance. Nothing could be further from the truth. The debt still remains an existing obligation, but it changes in nature. When it becomes time-barred, it becomes a “natural obligation.” This means that the debtor is no longer forcibly obligated to pay by enforcement authorities such as a bailiff, but is still morally obligated to pay. The collection of such a debt thus becomes highly complicated and unlikely.
2. Limitation periods vary depending on the type of debt
The Civil Code provides for different statutes of limitations depending on the type of debt. For monetary debts, the term is 3 years, but for other debts, such as those related to civil law contracts, the terms can be shorter. For example, a mere one-year statute of limitations applies to claims under contracts of carriage, freight forwarding contracts and preliminary sales contracts, among others. It is important to understand that the statute of limitations does not imply a fixed, uniform time limit for all debts, but the key principle is to always act as soon as possible.
3. The longer you wait, the more difficult it is to recover the debt
The most important argument for quick debt collection is that the longer we delay, the harder it will be to recover funds. For example, as time passes, documentation related to the debt may be destroyed or lost, witnesses may stop remembering details, and debtors may avoid payment. All of this complicates the collection process and reduces the chances of success.
4. Help from professional debt collection companies
Quick response is crucial, and fighting the problem of a time-barred debt itself can be extremely difficult. Therefore, it is advisable to quickly enlist the help of professional debt collection companies. Such a step can significantly increase the chances of success and speed up the recovery process.
5. No additional costs with Cash Collector
When you choose a debt collection company to work with, you don’t have to worry about additional costs. Cash Collector offers professional assistance in the recovery of debts, without charging commissions.
In conclusion, the statute of limitations does not mean that the debt disappears, but only changes form. Understanding the statute of limitations and responding quickly to time-barred debts are key. Professional help from debt collection companies, such as Cash Collector, can significantly improve the chances of recovery. Therefore, don’t delay – act immediately to increase your chances of collection success.