The regulation of time limits or terms to claim rights and debts, in general, is a sensible angle of any Law. The time that a creditor has to legally claim a debt (or to exercise any legitimate right) is not indefinite. The Law sets the rules in order to provide security on the creditor’s side, so he knows when to file a claim before his right elapses, and on the debtor´s side so he knows that a debt he cannot pay is not going to chase him indefinitely. The terms set out by the Law provide both parties with precise parameters in which to operate.
In addition to the above, in Spain, the matter was recently amended and the legislator considerably reduced the terms to claim debts. This change was introduced by Law 42/2015, which amended several sections of the Civil Code and also some other Laws. It is important to mention that all the terms below are interrupted when the claim is filed at the Court.
Rules
To avoid the aforementioned insecurity, the following are the mechanisms the Spanish Law sets out. All of the terms mentioned are to be calculated from the date that the debt was enforceable and remained unpaid.
The general principle is that the term to claim a debt is five years. This is the term for all debts in general and also for any claim for which the Law does not set a precise term.
Professional fees
For those debts arising from professional or trade fees, the term is three years. This is the term professionals such as solicitors, architects, etc have to claim or chase the debtors. This is also the time frame in which to claim unpaid amounts in trade and commercial relationships.
Mortgages
The time frame for lenders (banks, financial institutions, etc.) to claim unpaid amounts pertaining to mortgages is longer, up to twenty years.
Negligence
The term to claim compensation for damages from potentially liable parties elapses after one year of the event of the incident.
If you would like more information on debt collection or feel that your debt related issue in Spain could be pursued, please contact our team for a no-obligation consultation.