Do debts over 5 years not have to be repaid?

Estimated reading time: 3 Minutes

As far as debt Banksas a business card credit or loans Unpaid bills expire in five years, the account does not cease to exist after that period and your financial life continues to decline.

The maximum time the CPF and debtor name can be negative is five years, according to the Consumer Protection Act and the Civil Code. However, interest continues on the debt and the bank can continue to charge the debtor for the rest of his life.

Additionally, even with a clean name, the debtor can keep a mark forever, which can make it difficult or prevent future attempts to obtain credit.

The debt is over, what now?

In short, the name was liquidated again and the debt could no longer be collected in court, according to Sarasa. Thus, these situations, which are the most severe consequences that a retard can face, disappear after a prescription.

The bank can submit the debtor’s name, at any time of the due date, to the negative list of credit bureaus such as Serasa and SPC Brasil. In this way, the consumer will encounter many problems, such as obtaining loans and rent a credit card.

Debt collection in court

Judicial collection occurs when a creditor takes legal action to claim the payment it is due. However, this fee can only be collected within a five-year period. If this period is exceeded, the creditor will not be able to collect the debt in court.

In this way, if the defaulter does not repay the debt, he fails to comply with the court order. In extreme cases, the court decides to freeze assets until the maximum debt is covered.

What happens after 5 years?

After five years, the financial institution can no longer bring charges to court. However, it can continue to charge the debtor through letters, calls, or renegotiation proposals, as long as it does not occur in an abusive manner.

Thus, in all attempts, the consumer can claim that his debt has expired and that he will not pay.

According to Serasa, after debt expires, it no longer affects the score, which is the score calculated by credit houses that measures the degree to which a consumer defaults.

Therefore, it is possible that the score will go up after the debt has expired, since there will be no more pending issues in the consumer register.

Anyway, do you want to stay informed of everything that is happening in the financial world?

Follow us on the channel Youtube And on our social networks, like FacebookAnd the TwitterAnd the InstagramAnd the Twitch. So, you will track everything Banks Digital credit cardsAnd the loansAnd the financial technology and topics related to the world of finance.

Photo: Chaay_Tee / shutterstock.com