Limitation of Debt Enforced by a Bailiff - After How Long?

Limitation of debt - what does it actually mean?

The limitation of a debt is one of the most important institutions of civil law, giving debtors a real chance to be released from financial obligations. In Poland, almost 2 million people are in debt, and the total amount of arrears reaches PLN 42.8 billion. Many of these people are unable to cope with repaying their obligations, so they look hopefully for information on when a bailiff will lose the right to enforce their debt.

Limitation of a claim means that once the period set out in law has expired, the debtor can effectively refuse to perform the obligation. The creditor then loses the ability to pursue the amounts owed by compulsory means through a bailiff. This does not mean, however, that the debt ceases to exist - only its nature changes, into a so-called natural obligation, which cannot be enforced through legal channels.

It is worth stressing that limitation does not occur automatically. The debtor must raise a limitation defence before the court so that the court takes the expiry of the period into account. Since 2018, courts have examined limitation of their own motion in cases against consumers, but in other cases the debtor's action is crucial. That is why it is so important to know your rights and the time limits arising from the legislation.

Key limitation periods for debts under Polish law

Polish civil law sets specific periods after which claims become time-barred. The general limitation period is 6 years from the date the claim falls due, as provided in Article 118 of the Civil Code. For claims related to running a business and periodic payments (e.g. rent, loan instalments), the period is shorter and amounts to 3 years.

Bear in mind that the limitation period does not always run continuously. The legislation provides for situations in which the running of the limitation period is interrupted or suspended. Any action by the creditor aimed at recovering the debt - such as filing an application to initiate bailiff enforcement, an application for a summons to a settlement attempt, or initiating mediation - means that the period starts running again from the beginning.

Below we set out the most important limitation periods depending on the type of obligation:

• Claims under credit and loan agreements - 3 years (claims related to the bank's business activity)
• Claims for rent - 3 years (periodic payments)
• Claims under a sales contract - 2 years (sales made in the course of a business)
• Claims confirmed by a final court judgment - 6 years from the date the ruling becomes final
• Claims for telecommunications subscriptions - 3 years
• Fixed penalty notices and fines - 3 years from the date the penalty notice becomes final

Knowing these periods allows debtors to assess their situation knowledgeably and take appropriate legal steps.

Discontinuation of bailiff enforcement vs. cancellation of the debt - the key difference

One of the most common mistakes made by debtors is equating the discontinuation of enforcement proceedings with the cancellation of the debt itself. These are two completely different legal institutions, with different consequences for the indebted person.

A bailiff discontinues enforcement proceedings when they find that the debtor has no assets from which effective enforcement can be carried out. This happens when the debtor meets at least one of the following conditions:

• Has no income paid into a bank account that can lawfully be seized
• Does not work and has no income
• Has no savings or movable assets
• Has no regular source of living, such as a pension or disability benefit
• Does not own real estate or any other assets

After enforcement is discontinued, the bailiff states the reason for the decision, and the creditor has 7 days to lodge a complaint. If they do not, the proceedings are discontinued with final effect. However, the debt still exists, and the creditor has the right to file a new application to initiate enforcement within 6 years of the date the proceedings were discontinued.

This means that a debtor whose financial situation improves - for example by taking up employment, inheriting assets or acquiring real estate - may again come to the bailiff's attention. That is why the mere discontinuation of enforcement should not make a debtor complacent.

Which debts never become time-barred?

Polish law provides a list of claims that are not subject to limitation regardless of how much time has passed. This is important to know, because debtors often wrongly assume that all financial obligations will eventually become time-barred. Here are the claims to which limitation does not apply:

Maintenance claims

Maintenance for a child or a former spouse is a special category of obligation. The law protects the interests of those entitled to maintenance, so these claims do not become time-barred. This also applies to debts owed to the Maintenance Fund, which paid out benefits in place of a defaulting parent. The State has the right to seek repayment of these amounts indefinitely.

Claims related to ownership rights

Claims arising from the right of ownership of real estate - such as a demand to stop infringements of ownership rights by unauthorised persons - are also not subject to limitation. The same applies to claims for the dissolution of co-ownership of property, both real estate and movables (e.g. a car). A co-owner may demand the division of jointly owned assets at any time.

Non-pecuniary claims

This category includes, among others, claims for the protection of personal rights, for example in cases of unlawful use of a person's image or damage to their good name. The injured person may assert their rights regardless of how much time has passed since the infringement.

What to do when a bailiff is enforcing a time-barred debt?

If you suspect that a debt being enforced against you has already become time-barred, you have the right to take specific action. First of all, you should file an action to oppose enforcement under Article 840 of the Code of Civil Procedure, raising the defence of limitation of the claim. After hearing the case, the court may deprive the enforcement title of enforceability, which will effectively stop the enforcement.

It is crucial, however, to establish precisely whether the limitation period has actually expired. You need to verify whether the creditor has taken any action in the meantime that interrupted the running of the limitation period. Any enforcement application, court claim or even an acknowledgement of the debt by the debtor means that the period starts running again. That is why assessing the legal situation yourself can be risky and may lead to wrong conclusions.

It is also worth considering filing for consumer bankruptcy, which in many cases is the most effective tool for permanent debt relief. This procedure allows part or all of the obligations to be written off after a repayment plan set by the court has been carried out. It is particularly beneficial for people who have fallen into a debt spiral through no fault of their own.

Do not wait for the problem to resolve itself. The limitation of debts is a complex area of law in which every detail matters - the due date, the interruption of the period or the type of claim. Contact our firm to obtain a professional analysis of your situation and learn about the available ways out of debt. An initial consultation will help you understand your rights and make an informed decision about next steps.