According to the Consumer Protection Code and the Civil Code, debts and the negative name of a debtor must prescribe after 5 years. That is, after this period, debts cannot be collected in court. However, it is common for people to wonder if, in this context, the debt no longer needs to be paid.
Therefore, today we bring important information for you to understand after how long a debt prescribes or expires, no longer needing to be paid. Be sure to read!
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The number of people in debt has increased worldwide in recent times, mainly with the impacts of the Covid-19 pandemic. There are several causes that make people have debts and it is often difficult to pay them. In view of this, understanding about the debt period and the definitions of the CDC and CCB are also important to organize and define payments within the period.
According to Serasa, these two concepts are very important and often confuse people. The prescribed term is used in the legal environment and, therefore, refers to a debt that, after completing 5 years, can no longer be collected in court. The concept of expiring debt is related to the fact that upon completing 5 years, a debt does not generate negative name. That is, the debtor has a clean name, but interest and debt can still be charged.
However, it is important to note that despite the clear name, the debtor remains in default with the creditor company, if he has not paid the debt. Therefore, even though a debt has lapsed or expired, it can still be collected.
Any type of debt can lapse or prescribe after 5 years. Some examples are: credit card debts or contracted in financial institutions. On the other hand, what may be different is the statute of limitations, depending on the type of debt in question.
If you have a negative name, don't let your debt drag on for 5 years. The best thing to do is look for a way to pay off your debt. With this, it is possible to avoid credit restrictions, informal charges and processes. Therefore, it is essential to keep your name clean.
