The prescription of your debts can help youOn January 20, 2019 by Andrea Jenkins
Because of the bad economic cycle passed by families and companies, many of us are forced to look for alternatives. For what? So that they reduce or cancel the total debt that we have to support. A situation of defaults seems a big problem, but with the legal help indicated these bad drinks have a solution. Did you know the possible prescription of your debts?
Do you have debts with both the public administration and private entities? Do you not know the possibility of prescribing debts? Do you want to know what are the requirements to request the cancellation of your debts?
The way to start the process, is to make sure that the debts contracted exceed the time frame established by law. As stated in Article 1961 of the Civil Code “The actions prescribe by the mere lapse of time set by law.”
That is to say, the possible maneuvers to be able to cancel the outstanding debts depend on the time of prescription established by the binding legal framework. If the creditor has not claimed the amount of the debt before the prescription established by law in each case. The debt can be canceled. In Spain, in this case, to be able to cancel your debts will have to be fixed in articles 1961 and 1975 of the Civil Code.
Conditions to access the prescription of debts
- If it is true that the creditor has not taken legal or extrajudicial actions. This is, sending letters, requirement of presence before a notary or conciliation actions with the debtor.
- The veracity of the debt has not been recognized by the debtor.
The term of prescription of the debt may vary. It depends on the type of creditor or other factors. Here we point out a few:
- Debts with the Treasury: thanks to article 66 of the General Tax Law, this type of debt prescribes after 4 years.
- Mortgage debts: term of 20 years from the expiration date initially established. Fixed on the mortgage loan.
Negotiate and cancel your debts is possible
- Debts with the S. Social: the Administration as a creditor can not claim the payment of the debt or impose sanctions as provided in article 42 of Royal Decree 1415/2004 . When the same period of 4 years has been completed as in the Tax Agency . If within the established time, the Administration intercedes with a collection claim, the prescription of the debts will be suspended.
- Rental debts: a five-year statute of limitations for paying debts contracted for leases of rural and urban properties.
- Debts of supplies: if you do not know what the word “supplies” refers to, they are telephone bills, electricity or gas among others. These debts are the ones that most work will cost to know the prescribed prescription time to be able to negotiate the prescribed debts. Different sentences are dictated due to the different interpretation of the supplies. However, the term will go from three to five years if it is interpreted that affects consumers or users. Or if it is regulated according to the law applicable to installment payments.
- Bank debts: the demands, whether of interest or capital, will be notified within a period of 5 years thanks to the new legal framework.
The prescription of debts is not a fast process. You have to justify at the moment you claim your debts. As a result, the time established by law has been exceeded.
Find out and let experts in debt resolution help you accelerate and facilitate all procedures with justice and administration. Be advised appropriately and know your fundamental rights. These two points can save you from bad times because of debts that may already be prescribed.