Every day the number of Brazilians who are going through financial crises increases. And with that, plans to pay off debts are getting farther and farther apart. Many people wonder if after 5 years these debts expire. It will be?
In fact, not quite. What lapses are the restrictions on FUE / RASERA, so after 5 years your name is “clean”. Whether or not debt is prescribed is a very common question. Many people wait for the deadline for the debt to prescribe because they can’t afford it. In Article 25 of the Civil Code, it says that debts are written back in 10 years, except for a few exceptions. For example, if the institution decides to file a collection action in court, this limitation period is suspended.
What Happens After Debt Prescribes
You will continue to owe to the companies you have purchased from, only to have your name removed from credit protection services.
Although your name is not on the debtor list, doors may be closed to you by simply consulting your social security number, and institutions, where you purchased in the past, will still be entitled to continue charging you the outstanding balance. The solution to settling debt is to contact the financier and try a friendly negotiation. But don’t expect your debt to snowball to mark a deal.
Tip for negotiating the prescribed debts
Remember that waiting for your debt to expire will not improve your credit unless you get the lender to agree to remove late payments.
Late payments can remain on your credit report for up to seven years from the original default. Still, hope is not lost. Even if you can’t remove negative items from your credit reports, you can still start getting better credit once your debts are resolved. It is common to find credit offers from lenders willing to offer credit. This can be very good, study with caution.
Common Questions About Prescribed Debt
What are the most common debt limitation periods?
Bank slips, credit cards, public accounts such as water, electricity and telephone prescribe 5 years after the due date.
Can Prescribed Debts Be Charged By Businesses?
After the prescription, companies cannot charge unpaid debts. If this happens, the consumer must file a written claim, or go to the nearest Procon unit and file a claim for damages.
If debt goes to court, what will the limitation period look like?
It depends. If the creditor files the recovery action and the consumer is notified (or quoted under the law) before the debt expires, the limitation period is interrupted and begins to run again from the date the lawsuit was filed in the court. Justice
If the consumer citation in the lawsuit occurs only when the debt is already prescribed, there will be no new deadline, the debt “expired”.
If the debt has expired, the consumer’s name comes out of the delinquent register?
If the five years of registration in the delinquent register have passed and the debt prescription is longer, the register manager should automatically remove the consumer’s name from its database.
If the debt limitation period is less than five years, when it expires, the consumer will need to request the withdrawal of his or her name from the negative registry manager.
If you keep the name dirty, what should the consumer do?
The consumer should look for the company that manages the delinquent register and communicate, in writing, the prescription and request the exclusion of his name from the register. If not answered, the way out is to bring justice.
In this case, the consumer may also seek compensation for any damages caused from the improper permanence of his name in the delinquent register.