To the surprise of many debtors and creditors, debts can become time-barred after a certain time, so that the debtor no longer has to pay his outstanding debts.
In accordance with the statutory limitation period, which is regulated at $ 195 USD , the limitation of debt occurs after three years. However, there are many further aspects to be considered on this topic, which are presented in more detail below in relation to the topic “When do statutes become statute-barred?” / “Limitation of debt”.
When does debt expire? – Statutory limitation periods
Per capita debt tends to increase more and more. Around 6.9 million households in Germany are currently in debt. Settling liabilities on the question of “When will the statute of limitations expire?” Can pose enormous financial burdens for debtors. In the event of sudden unemployment, illness or a death in the family, debtors often do not know how to repay the debts incurred along with interest. For this reason, many debtors ask, “When does debt expire?”
It is important to know about the question “When does the debt expire?” That the limitation period (in relation to the question “When will the debt expire?”) Only start for you as the debtor at the end of the year in which the claim arose and you from have become aware of the claim.
Special features around the topic “When does debt expire?”
In the following, you will be presented some special forms and peculiarities on the topic “When will the statute of limitations expire?”, About which many debtors have open questions.
- When does debt expire in the case of rent debts?
Rent debt arises whenever tenants do not pay or do not pay all of their monthly rent for renting an apartment or house. In the case of rent debts, the three-year limitation period applies, which is regulated at $ 195 USD.
- When does debt become time-barred in the case of tax debts?
In the case of tax debts, the statutory limitation period for debts occurs after five years in accordance with Section 228 of the Tax Code (AO).
- When does debt expire in the case of debt to debt collection companies?
Many companies sell their claims against debtors to debt collection companies in the ongoing dunning procedure. From then on, the debt collection agency is responsible for processing and recovering the debts and also the primary contact for the debtor. The three-year limitation period in accordance with $ 195 USD also applies to debt collection. If there is an enforceable title, the period is extended to 30 years.
- When does debt become time-barred in the case of health insurance debt?
For a few years now, every citizen residing in Germany has been legally obliged to take out health insurance. If you do not pay your health insurance contributions or do not pay them in full, you can read the regulations on the statute of limitations for debts to health insurers in Section 25 (1) Fourth Social Security Code. This clause stipulates that the claims of health insurance companies for payment of contributions become statute-barred four years after the end of the calendar year in which they arose. If policyholders have demonstrably not paid the premiums intentionally, the statute of limitations will only come into effect after 30 years.
Possibilities for the creditor to extend the time limit – When will debt then expire?
Debtors should under no circumstances be happy too early and expect a rapid debt relief. The creditor can extend the statutory limitation periods. If the creditor obtains a judicial order for payment, the limitation period begins six months later.
The statutory limitation period can also be extended if the creditor can provide a debt instrument. A debt instrument is an official confirmation that the debtor has a legal obligation to the creditor. Enforcement notices, judgments and notarial deeds are typical examples of a debt instrument.
Limitation of debt: Are all debts listed in the credit record?
Credit record (“Protection Association for General Loan Protection”) is the largest and best-known credit agency in Germany. Many companies use the data stored at credit record to get a reliable picture of the potential solvency and willingness to pay of potential customers.
Credit record receives the stored information from its contractual partners. The data stored at credit record includes personal data (including full names, dates of birth and addresses), checking accounts and credit cards, credit contracts and telecommunications contracts. credit record also stores whether and when due liabilities are paid by debtors.
Credit record does not store any information on employment relationships, assets, the account balance and the ownership of share accounts.
In principle, credit record does not save all debts, since many companies do not communicate them with the credit agency.
However, large companies and corporations in particular tend to send possible open requests for information to credit record.
How does credit record deal with the limitation of debt?
Since registered debts and insolvencies have a negative impact on everyday things (for example, when looking for a flat or paying in installments), many debtors wonder whether and when their liabilities will be deleted from the credit record register.
If debtors have paid off their liabilities, credit record will delete the debt entry three years after the payment has been made. At the same time as the deletion, your credit record score will improve, making it easier for you to get a good and cheap loan offer in the future.
Incidentally, should you find out within the scope of a credit record self-disclosure that your personal data are stored incorrectly at credit record, you can request a correction / deletion of the data record from credit record.