Do the debts have an expiration date?

Let him who has never had a debt raise his hand. Probably no one will pick it up. Are we wrong? Mortgages, credit cards , personal loans. Today, almost everyone has some debt on their personal financial balance. This is so because in modern societies, consumer and credit go hand in hand on a regular basis . If something is expensive and we do not have savings to pay for it in cash, we do not give up the purchase, we finance it. The problem is that badly managed debts can drag any person or business down the cliff of bankruptcy. What many people do not know is that these debts, like almost everything in life, also have an expiration date , that is, after a while, the term obligations expire and disappear. These terms are regulated by law and depend on the type of obligation in question.

What is the expiration date of the debts?

Let’s review the expiration date of the most common debts :

  • Mortgage loans. Although it is practically impossible for this situation to take place, since in the event of non-payment the bank will exercise its rights against the home (first seizure and then auction), the Civil Code establishes mortgage debts prescribe 20 years after their expiration date.
  • Credit cards. These debts expire after five years. However, it is also unlikely to reach this situation, since before it occurs, in all probability, the creditor will have taken the necessary legal actions to claim the money from its debtors.
  • Debts with the Treasury. If you owe money to the Tax Agency and it does not claim it, the debt will expire after four years. But … do you know someone who has not previously received a notification advising of non-payment? Hacienda does not forgive a single one!
  • Debts with Social Security. As in the previous case, debts with Social Security also generally expire within 4 years, although the terms vary depending on the type of debt in question.
  • The Civil Code dictates that debts for real estate rentals expire after five years, although it is also difficult for this to happen without the landlord making a first move and initiating a claim through legal channels.
  • Municipal taxes. The most common municipal taxes are the Circulation Tax and the Real Estate Tax (IBI). In both cases, the expiration period in the event of non-payment is four years.

As you have just seen, all debts have an expiration date. However, reaching this situation is quite complicated, since if the creditor initiates a payment claim process, the debt prescription process is paralyzed, in this way, if we have a debt due to the non-payment of a credit card , for example, and the bank activated its legal machinery to collect it, time would stop and the terms for the payment obligation to expire would be interrupted. However, it is important to emphasize that not paying a debt cannot be an option. The legal troubles that you can get involved in are quite tricky and it is best to avoid them. It is better to follow the moral principles of Tyrion Lannister, one of the most influential characters in the Game of Thrones series, who always emphasized when talking about debts that “a Lannister always pays his debts.” If you need a little extra help, at Vivus we can Offer you a quick loan of up to 1,000 euros (300 if it is the first time you request it) to be able to face any unforeseen event that may arise. It is very simple and will only take you ten minutes. There is hardly any paperwork!

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