How many years does a bank debt expire? Check what the Civil Code in Peru states

In Peru, the statute of limitations on a bank debt refers to the time during which a financial institution has the right to claim payment of a debt. Once this period has elapsed, the debtor can request the extinction of the obligation. It is important to know these deadlines to avoid unpleasant surprises and to properly manage debts. In this way, informed decisions can be made on how to best manage financial obligations.

Knowledge about the statute of limitations on debts is of great importance to consumers. Not only does it allow for better management of debts, personal financebut also provides a basis for negotiating with banks if necessary. In addition, understanding these timeframes can be crucial to planning your financial future with greater confidence.

How many years does it take for a bank debt to expire?

He Civil Code The Peruvian law establishes that bank debts are subject to a general statute of limitations of 10 years. This period begins to count from the moment the obligation becomes payable, that is, from the moment the debtor is legally obliged to comply with the payment. This period is applicable to most bank debts, including personal loans, credit cards and loans.

However, it is important to note that there are exceptions to this general rule. Some debts may have shorter or longer statutes of limitations, depending on the nature of the obligation and the specific agreements between the parties involved.

Exceptions and particularities in the prescription of debts

There are particular cases in which the limitation period may vary. For example, mortgage debts have a limitation period of 15 years, due to the nature of the collateral involved. In addition, debts arising from non-contractual liability, such as damages, have a limitation period of 2 years.

Another important aspect is that the statute of limitations can be interrupted. This happens when the debtor acknowledges the debt, makes a partial payment or when the creditor initiates a legal action to claim payment. The interruption of the statute of limitations restarts the counting of the term, giving the creditor more time to demand compliance with the obligation.

Procedure for declaring the prescription of a debt

For a debt to be considered time-barred, the debtor must formally request a declaration of time-barred status from the competent authority. This process involves submitting an application to the relevant judge, who will assess whether the legal requirements for declaring the debt to be extinguished have been met.

It is advisable to have legal advice to carry out this procedure, as it can be complex and requires compliance with various procedures and formalities. In addition, it is crucial to have documentation that supports the time elapsed and the lack of actions by the creditor during the limitation period.

Link to find out if you have debts in your name, via SBS

To know if you have debts in your namefollow these steps:

• Go to the official SBS website: go to the website of the Superintendency of Banking, Insurance and AFP (SBS).
• Access ‘Online Services’: within the portal, look for the section called ‘Online Services’.
• Check with your ID: use your National Identity Document (DNI) number to make the query.
• Review your debt report: you will receive a monthly report detailing the loans you have contracted with companies in the financial system, based on your payment behavior.

What is the function of the SBS?

The SBS It is the entity responsible for supervising and regulating the Peruvian financial system, including banks, insurance companies and pension funds. Its role is to ensure that these institutions operate in a transparent and secure manner, protecting consumers and maintaining the stability of the financial system.

Can I be seized for a bank debt?

Yes, in Peru, the bank can seize assets and bank accounts in case of debts. This process requires a court order, which is obtained after the creditor has tried to collect the debt by other means without success.