In the context of debt recovery claims, one of the most frequently asked questions is when a debt that has been judicially claimed expires. This issue is crucial for both creditors and debtors, as it directly affects the possibility of enforcing or being released from a payment obligation.
The statute of limitations on a debt is a legal concept that sets a deadline for the creditor to claim the payment of a debt. Once this period has elapsed, the debtor can invoke the statute of limitations to avoid payment, although the debt itself does not disappear.
In the case of judicially claimed debts, while the concept of a statute of limitations may seem straightforward, there are multiple nuances that require detailed consideration. For this reason, as specialist debt recovery lawyers in Barcelona, we aim to provide you with solid knowledge about the limitation periods for judicial debts, the factors that may affect these periods, and the implications for both creditors and debtors.
How long does it take to resolve a non-payment lawsuit?
The time it takes to resolve a non-payment lawsuit depends on various factors, such as the complexity of the case, the workload of the court, and the cooperation of the parties involved. However, generally speaking, a non-payment lawsuit can take between six months and two years to reach a resolution, depending on the court handling the corresponding claim.
To estimate the duration of a judicial process for non-payment, the following phases must be taken into account:
- 1. Filing the claim
The creditor initiates the process by filing a claim with the competent court.
- 2. Admission of the claim
The court reviews the claim and, if it meets the requirements, admits it for processing. This step may take 1 to 3 months.
- 3. Notification to the debtor
The debtor is notified of the claim through the Court of First Instance in their locality. The debtor has 20 business days to make the payment or respond to the claim.
- 4. Debtor's response
Three scenarios can occur:
- If the debtor pays the debt within the established period and acknowledges the claim, a judgment will be issued condemning the defendant.
- If the debtor pays the debt within the established period but does not notify the court, they will be declared in default, and the proceedings will continue until a judgment is issued.
- If the debtor does not pay the debt, the judicial process continues until the corresponding judgment is issued.
- 5. Preliminary hearing
If required, a preliminary hearing is held, which may take 3 to 6 months to schedule.
- 6. Trial
The trial may be delayed by 6 months to 1 year after the preliminary hearing.
- 7. Judgment
The judgment may take 1 to 3 months to be issued after the trial.
It is crucial for both creditors and debtors to be aware of these timelines to avoid losing rights or incurring additional financial obligations. During this period, the creditor has the responsibility to initiate the legal process to claim the debt within the deadlines established by law, to prevent the debt from becoming time-barred.
When do judicially claimed debts become time-barred?
Judicially claimed debts can become time-barred if not pursued within a specific period. The statute of limitations depends on the type of debt and the nature of the contract or agreement, and in general, the period can range from 1 to 20 years, depending on the circumstances. Additionally, following the reform of the Civil Code in 2015, the limitation periods for many debts were significantly modified. Below, we outline some of the main scenarios for debt limitation periods in Spain:
Personal and commercial debts
According to Article 1964 of the Civil Code, debts arising from personal or commercial contracts become time-barred after 5 years from when their fulfillment can be demanded. This includes bank loans, personal loans, and other financial obligations.
Mortgage debts
Mortgage debts become time-barred after 20 years, as stipulated in Article 1964 of the Civil Code. This means mortgage creditors have a much longer period to judicially claim these types of debts.
Labor debts
Debts related to unpaid wages have a statute of limitations of 1 year, meaning an employee who has not received their wages can claim them within one year of when they became due.
Tax debts or debts with public administration
Debts with the administration, such as unpaid fines or taxes, generally become time-barred after 4 years. For debts related to public debt, the limitation period may vary depending on the specific applicable regulations.
All these timeframes refer to debts that have not been judicially claimed. Once a judicial procedure is initiated, the situation changes:
- Judicial claims interrupt the statute of limitations.
- If a favorable judgment is obtained, the limitation period to enforce the judgment is 5 years.
- During the judicial process, the statute of limitations does not run.
Therefore, a debt that has been judicially claimed will not become time-barred while the process is active. Once the process concludes with a final judgment, the creditor will have 5 years to enforce the judgment.
The sooner a judicial claim is filed, the more viable the procedure will be, and the lower the risk of the claim becoming time-barred. In cases where the judicially claimed debt has resulted in a judgment and the debtor fails to pay, a judgment enforcement claim will be initiated to proceed with the seizure of the debtor’s assets, conducting a judicial inquiry into their assets.
When do judicial seizures expire?
Once a judicial seizure has been issued, its validity depends on the type of asset seized. For example, seizures on real estate, such as homes, can remain in effect for several years until the debt is settled or the asset is sold. However, seizures on movable property, such as vehicles or bank accounts, may expire more quickly if the debt cannot be satisfied.
It is important to note that creditors must keep the seizure updated to prevent expiration. If they fail to do so, the debtor could request the cancellation of the seizure and be released from the obligation without paying the full debt.
What happens if I don’t pay a judicially claimed debt?
If you fail to pay a debt that has been judicially claimed, the creditor may request enforcement measures, such as asset seizures or income garnishments. Additionally, failure to comply with a judicial ruling can lead to further legal consequences, including late payment interest and potential difficulties in obtaining future credit. In extreme cases, unpaid debts can result in bankruptcy proceedings, where the debtor’s assets are liquidated to cover the outstanding obligations.
The risk of facing judicial seizures or being denied future credit are direct consequences of failing to meet the payment obligations set forth in the judicial ruling. Therefore, if you are facing a judicial debt, it is advisable to act promptly to avoid further financial complications.
How can I find out if a debt has expired?
To determine whether a debt has expired, it is necessary to check the last time formal payment was demanded or whether legal action was taken against you. In many cases, debts may seem forgotten, but if they are not formally claimed within the statute of limitations, the debtor has the right to invoke the expiration as a defense.
A specialized debt recovery lawyer, such as BUFET GÓMEZ FERRÉ, can assist you in reviewing the documents and important dates to determine whether the debt has expired or can still be claimed.
Frequently Asked Questions
What happens if a debt is not claimed on time?
If a debt is not claimed within the statute of limitations, the creditor loses the right to demand its payment through legal means. This does not mean the debt disappears, but the debtor can invoke the statute of limitations as a defense to avoid payment.
Can the statute of limitations be interrupted?
Yes, the statute of limitations can be interrupted if the creditor takes legal actions, such as filing a judicial claim or issuing a notarial demand. This interruption resets the statute of limitations, giving the creditor more time to claim the debt.
Do bank debts expire in the same way as other debts?
Bank debts, such as personal loans or credit cards, generally expire after 5 years from the moment the bank can demand payment. However, debts such as mortgages have a longer statute of limitations, up to 20 years.
What happens after a debt has expired?
Once a debt has expired, the creditor loses the right to take legal action to claim its payment. However, this does not mean the debt completely disappears or that the debtor is free from all consequences. Consider the following points:
- Right to collect extrajudicially: although the creditor cannot file a lawsuit, they may still attempt to collect the debt through non-judicial means, such as collection calls or voluntary negotiations.
- Report on credit history: the debt may still appear on the credit report for some time, affecting your credit score and your ability to obtain future loans.
- Moral responsibility: even if the debt has legally expired, some individuals may feel a moral obligation to pay it. However, it is recommended to assess your circumstances before deciding whether to proceed with payment.
Free lawyer consultation – specialists in debt expiration and judicial claims
Free lawyer consultation with BUFET GÓMEZ FERRÉ: Are you facing this situation and unsure how to proceed? We are debt recovery lawyers based in Barcelona and operating across Spain.
As experts in banking law, commercial law, and debt expiration, we offer a free initial consultation to evaluate your case and provide you with the best legal guidance on when a judicially claimed debt expires. Our team of specialized lawyers has extensive experience managing statutes of limitations, interruptions, and judicial claims, ensuring that your rights as a creditor or debtor are protected at all times.
Feel free to contact our law firm in Barcelona or use the contact form on our website to receive expert legal advice.