Limitation period for debt recovery: how to calculate it and what to check before filing a claim

The money was not returned on time, and time goes on: the creditor accumulates irritation and anxiety, while the debtor gets used to the fact that the claim was never made. Then the parties swap places: the creditor remembers years later, and the debtor is surprised to receive a claim under an obligation they had almost forgotten. In both cases the key question is the same — whether the limitation period for debt recovery has expired.

The mistake usually lies in treating the period as a single date counted from the day of the loan or from the last payment. In practice, the count depends on the type of obligation, on whether a deadline for performance was set, on the actions of the parties and on whether the claim has been through the court. Below — how the period is calculated, what shifts it and which documents are worth pulling out before going to court.

Limitation period for debt recovery: the general principle and how it is calculated

The limitation period for debt recovery is the time during which a creditor can demand money from a debtor through the court. As a general rule, this period is three years. If it is missed, the court may refuse recovery, even when the debt actually exists and is confirmed by documents.

A creditor cannot afford to delay: the earlier a claim is filed, the lower the risks. A debtor, by contrast, needs to check the dates — whether the limitation period has expired. But the period does not disappear on its own: the court applies the limitation period only on the application of a party to the dispute; it does not check this on its own initiative. The limitation period for debt recovery starts running from the moment the creditor learned or should have learned that its right had been violated.

• For the creditor: record the date when the debtor stopped paying.
• For the debtor: check how much time has passed since that date.
• For both parties: remember — the period is applied only on application.

Limitation period for debt recovery: what affects the count

The starting point for the debt recovery period is the day when the creditor learned or should have learned that its right had been violated. In the case of a one-off default (a loan, a one-off delivery), this is the date following the day on which the money was to be repaid under the contract. If payment under the contract was to be made in instalments, the period is counted separately for each payment — a default on the January instalment does not drag the whole schedule with it; each instalment has its own count.

Acknowledgement of the debt by the debtor interrupts the running of the limitation period, and the count starts afresh. In practice this means a written confirmation of the amount, a signed reconciliation statement acknowledging the debt, a partial payment, or a request for a deferral. That is why, before filing a claim, it is worth checking the correspondence and documents: it is precisely these papers that can shift the debt recovery period and give the creditor back lost time.

• The repayment date under the contract — the starting point for a one-off debt
• Partial payments — each instalment is counted on its own
• A signed reconciliation statement or letter — interrupts the period
• A partial payment after default — also an acknowledgement of debt

Limitation period for debt recovery in a company: receivables and payables

Debts can be mutual: receivables are what the company is owed, payables are what the company owes. Both categories are subject to the general three-year limitation period, but the risks and the logic of counting differ.

As a creditor, the company monitors the limitation period for recovering receivables: if it misses it, the court will refuse. As a debtor, it monitors the period for recovering payables: the counterparty is also bound by the period.

Before filing a claim, both sides check:

• the contract, delivery notes, acts, payment orders — confirm the debt
• correspondence and claims — show acknowledgement of the debt
• a reconciliation statement — shifts the count when signed
• a bank statement — records the last payment

The period is counted from the moment the creditor knew or should have known that the right was violated; acknowledgement of the debt interrupts it, and the count starts afresh.

Limitation period for recovering a debt to a bank under a loan

When it comes to a loan, many mistakenly believe that the bank can demand the money indefinitely. In fact, the limitation period for a debt to a bank is the general one: three years. It is counted from the day the bank learned of the violation of its right, that is, from the date a regular payment was missed. If the bank did not go to court for a long time and then filed a claim, the debtor only needs to state that the period has expired — and the court will refuse recovery. However, the limitation period for a loan debt can be interrupted: for example, if the debtor acknowledged the debt in writing or repaid part of it, the count starts afresh. It is therefore important to check whether any such actions took place.

Selling the debt to collectors neither resets nor extends the period. The new creditor receives the same rights and the same time limits. The limitation period for recovering a loan debt is the same for collectors — three years from the moment of default. Interest and penalties are additional claims: each accrual period has its own limitation period, but once the period for the principal debt expires, the period for them expires too. If the bank or the collector missed the deadline, the expiry of the limitation period becomes the key argument for objections. Check: when the default arose, whether the debt was acknowledged, and when the claim was filed. These dates will determine the outcome.

Limitation period for recovering a debt under a court decision and judicial debt

Once a court decision has entered into force, the limitation period for recovering a debt under a court decision no longer applies: the dispute has already been resolved, and recovery then proceeds within enforcement proceedings. So the question "has the limitation period expired" gives way to another — whether the creditor managed to submit the enforcement writ for execution in time.

The enforcement writ may be submitted within the period established by law, and if it was missed for a valid reason, the period is restored through the court. Until the writ is submitted, the period for submitting it continues to run, and after it expires without restoration, the debt remains only on paper. It is these dates that determine whether the debt can still be recovered by enforcement, so the following are checked:

• the date the decision entered into force
• the date the enforcement writ was issued
• the date the writ was submitted to the court enforcement officer
• the reasons for the delay, if the deadline was missed

If enforcement proceedings have already been initiated and not completed, the limitation period for recovery of debt under a court decision does not apply.

Limitation period for recovery of debt for utilities and debts of a deceased person

For utility debts, the limitation period for recovery of debt applies, but with an important caveat: each overdue invoice is counted separately. If payment for heating or water was not made for years, the payment does not "expire" as a single lump — for each invoice, the countdown runs from its own period. Therefore, if a utility provider, an OSI or a KSK files a claim in court, some months may fall outside the limitation period and some within it, and the debtor should check each invoice by date.

The limitation period for the debts of a deceased person also applies, but here the key point is the scope of the heir's liability. Heirs are liable for the debts of the deceased within the value of the inherited property: if the debt exceeds the inheritance, there is no obligation to pay more than its value. But before accepting an inheritance, it is worth checking whether the deceased had outstanding loans, taxes and utility debts: the inheritance must be accepted or declined within six months from the day the inheritance is opened, and it cannot be accepted with reservations or subject to a condition.

• Check each invoice by date
• Compare the debt with the value of the inheritance
• Request a statement of debt from the utility service
• Assess the actual assets and liabilities of the deceased

Limitation period for recovery of alimony debt: how it differs from the recovery period

Alimony is an exception to the general rule on the limitation period for recovery of debt. The limitation period does not apply to claims for recovery of alimony for the future: as long as the right to maintenance exists, the creditor may apply to court at any time. This protects the recipient from losing the means of subsistence due to delay.

The limitation period for past-period alimony works differently. If the debt arose through no fault of the payer, it can only be recovered for the three years preceding the submission of the enforcement document. But where the debt arose through the fault of the debtor — for example, he concealed income or ignored the enforcement document — the limitation does not apply, and the debt is recovered for the entire past period.

• Current payments — no limitation period
• Debt for the past — limitation applies
• Payer's fault in the debt — limitation does not apply
• Documents: writ of execution, calculation of arrears

Until the dates, documents and actions of the parties have been checked, it cannot be asserted that the debt is hopeless or, conversely, undisputed: it is precisely the limitation period that determines which arguments are even worth raising in the proceedings.