Statute of Limitations – When Is a Debt No Longer Owed?

One of the most frequently asked questions by debtors is: “Years have passed – do I still owe this amount?”
The answer lies in the concept of the statute of limitations.

1. What is the statute of limitations?

The statute of limitations is a period after which the creditor loses the right to seek compulsory enforcement of their claim.
Important: the debt does not automatically disappear but becomes a natural obligation – still owed, but unenforceable through court proceedings.

Legal basis: Articles 110–120 of the Obligations and Contracts Act (OCA).

2. What are the limitation periods under the OCA?

General limitation period – 5 years (Art. 110 OCA): applies to all claims for which no other period is specified.
Shortened 3-year limitation period (Art. 111 OCA): for:
- claims for remuneration for work (when no other limitation applies) – Art. 111(a);
- claims for damages and penalties under contracts – Art. 111(b);
- claims for rent, interest, and other periodic payments – Art. 111(c).

3. When is the limitation period interrupted?

According to Art. 116 OCA, the limitation is interrupted by:

Acknowledgment of the debt by the debtor – e.g., in writing, by partial payment, or by signing a settlement agreement;
Filing a claim or defense in court or initiating conciliation proceedings – if the actions are not upheld, the limitation is not considered interrupted; a new period begins after the case is resolved;
Taking enforcement actions – e.g., imposing an attachment, inventory of property by a bailiff.

After interruption, a new limitation period begins.

4. How is the limitation applied?

The court does not apply limitation ex officio – Art. 120 OCA.
The debtor must explicitly raise a limitation defense.

5. How to invoke the statute of limitations?

In court proceedings: in the reply to the claim or during the hearing.
In order-for-payment proceedings: by filing an objection under Art. 414 CPC, explicitly stating that the debt is time-barred.
In enforcement proceedings: by filing an objection under Art. 414 CPC or raising a defense before the court that issued the enforcement order.

6. Conclusion

The statute of limitations is an important tool for debtor protection. If the 3- or 5-year period has expired and no interrupting events have occurred, the debtor may be released from the obligation, but only through legally established procedures.

In such situations, it is always advisable to consult a lawyer specialized in civil and contract law, to avoid missing deadlines or making formal mistakes.