How to Apply and Assert the Statute of Limitations on Claims: Dealing with Old Debts Without Legal Disputes
Methods for asserting the statute of limitations on claims, strategies for handling old debts, and legal countermeasures. This guide provides step-by-step methods and certified mail examples for safely resolving long-standing debts, such as civil and commercial claims, by applying and asserting the statute of limitations.
For a debtor, a financial crisis is not just a debt problem but leads to severe pressure on their entire life. In particular, the unexpected sight of old debts being raised again by a creditor, followed by unforeseen seizures, collection notices, or lawsuits, is terrifying for anyone. Considering this reality, the most crucial legal tool a debtor has to protect themselves is the **method of asserting the statute of limitations (extinctive prescription)**.
Many debtors understand the **concept of the statute of limitations** but fail to clearly grasp how to actually assert it, when it can be used, and on what grounds it can block a claim.
The statute of limitations is not just a legal term; it is the **debtor's right**. However, this right must be known to be exercised, and it only takes legal effect when asserted. Therefore, this article systematically organizes the *methods for asserting the statute of limitations on claims* and outlines practical ways to respond.
The Basic Structure of the Statute of Limitations and the Debtor's Right
What is the Statute of Limitations on Claims (Extinctive Prescription)? It is a system where a creditor's right is extinguished if they do not exercise that right for a certain period. In other words, over time, the debtor is no longer legally required to bear responsibility.
However, the effect is not automatic just because the **statute of limitations has been completed**. It must be explicitly asserted by the debtor using the **method of asserting the statute of limitations on claims** to be legally recognized. In other words, if it is not mentioned, it is as good as nonexistent. Understanding this structure is absolutely critical for the debtor.
It is also essential to know that the period of limitations varies depending on the type of claim. General civil claims are 10 years, commercial claims are 5 years, and claims for telephone bills, hospital bills, and academy fees are 3 years. Credit card debts are generally 5 years. The debtor must calculate how much time has passed and determine whether the creditor took any action to interrupt the statute of limitations during that period.
Grounds for interruption include **filing a lawsuit, seizure (attachment), or applying for an order for payment**. However, many debtors are unaware of this and mistakenly believe that a collection text message or call from the creditor restarts the clock. In reality, collection texts or calls are not legal grounds for interruption; the most crucial factor is whether formal legal procedures were involved. Understanding the *method of asserting the statute of limitations on claims* is essential in this regard.
3-Step Strategy for Applying the Statute of Limitations in Real-World Situations
Sometimes, a creditor will contact the debtor about an old debt or a debt collection agency will suddenly claim to have acquired the debt. Debtors often panic in these situations and mistakenly agree to a settlement or even send a partial payment. However, a single payment can revive the statute of limitations, making every action highly critical. Therefore, debtors must strictly follow the strategy below.
| Step | Description |
|---|---|
| Step 1 | Calculate the statute of limitations period and verify interruption status. Directly calculate the period based on civil claims (10 years), commercial claims (5 years), etc., and investigate any grounds for interruption. |
| Step 2 | Secure evidence. Check the government 24/Supreme Court websites for records of the creditor filing a lawsuit, an order for payment, or seizure records. |
| Step 3 | Formally assert the **statute of limitations** with an official document. The completion of the statute must be explicitly stated in a certified mail (content certification) or a legal response/answer brief. |
These three steps are not just descriptions; they are practical strategies that bring results in actual legal disputes. Crucially, the debtor must know how to draft the document and when to submit it.
The core of the **method of asserting the statute of limitations on claims** is to assert it in a timely, clear, and evidence-based manner. For example, if an order for payment is received, the completion of the statute must be mentioned when filing an objection within two weeks; failure to do so means compulsory execution cannot be stopped, even if the statute has expired. In short, the system protects the debtor, but without knowing the procedure, protection cannot be secured.
1. Asserting the Statute of Limitations via Phone Call (The Quickest Method)
A debtor requires accurate information and immediate response to stand firm and exercise their legal rights in a crisis. Specifically, the *method of asserting the statute of limitations on claims* is the most powerful tool for escaping old debts. Utilizing this can protect the debtor from various risks, including lawsuits, seizures, and collection demands.
However, it must be emphasized again that the statute does not automatically expire; it only takes effect when asserted. Since a single mistake by the debtor can revive the statute, extra caution is needed. Next, we will examine in more detail how to apply the **method of asserting the statute of limitations on claims** with practical examples.
Key Phrases for Phone Calls
- Identity and Claim Verification:
- "My name is (Your Name). I am calling about the claim (Claim Number or Content) held/entrusted to your company."
- Request for Verification of Statute Completion:
- "This claim has **exceeded 5 years (commercial claim)** from the final payment date or final legal action date. Please confirm if there were **any lawsuits or orders for payment within the last 5 years**."
- Assertion of Statute Completion:
- "If there was no legal action to interrupt the statute of limitations within 5 years, I hereby **assert (raise the defense of) the completion of the statute of limitations** for this claim in accordance with the Civil Act."
- Request for Confirmation of Debt Non-existence:
- "Following the assertion of the statute of limitations, please confirm that the debt is **non-existent** and cease any further debt collection efforts or dunning."
Most Important Warning
NEVER perform the following actions during a call. These actions interrupt the statute of limitations and restart the 5-year period (**Statute Revival**):
- Partial Payment: "I will pay even 10,000 KRW now."
- Promise to Pay: "I will pay next month," "I will pay in installments."
- Acknowledgement of Debt: "It is indeed the money I owe," "I apologize."
2. Asserting the Statute of Limitations via Certified Mail (The Most Reliable Evidence)
After a phone call, or even without one, sending **certified mail (content certification)** reliably preserves legal evidence.
Content Certification Inclusions
- Recipient (Creditor): Company name and address of the creditor (e.g., Korea Asset Management Corporation, Shinhan Card).
- Sender (Debtor): Your name, address, and contact information.
- Claim Information: The **date of occurrence (e.g., 2000.01.01.)**, amount, and claim name (e.g., Credit Card Claim).
- Key Assertive Statement:
- "The above claim is a commercial claim, and the **5-year statute of limitations** applies. As 5 years have already passed since the final payment date or the final legal procedure date, I **assert (raise the defense of) the completion of the statute of limitations** in accordance with Article 162 of the Civil Act."
- Demand:
- "Due to the completion of the statute of limitations, the debt is non-existent. Please immediately **cease debt collection efforts** and **delete** the record from credit information."
Certified Mail Sending Procedure
- Prepare **three copies** of the above content.
- Visit the nearest **post office** and send it as certified mail (content certification).
- One copy is for the creditor, one is for post office retention, and one is for the sender (you) to keep.
3. Legal Procedure Needed When Creditor Ignores: Lawsuit for Confirmation of Debt Non-Existence
There are cases where the creditor ignores the assertion of the completed statute or maliciously attempts compulsory execution. Typical examples include attempts to seize wages or bank accounts. Even in these situations, the debtor has sufficient recourse.
The method is to file a lawsuit for confirmation of debt non-existence. This procedure asks the court to confirm that the debt no longer exists because the statute of limitations has been completed. If the debtor wins, the creditor can no longer pursue compulsory execution, and collection efforts will cease completely.
Although this lawsuit may seem like a burdensome procedure, it is quite straightforward. The complaint filed with the court should summarize the nature of the claim, the relevant dates, the completion of the statute, and the actions taken by the creditor up to that point.
In fact, courts often find the creditor's late exercise of rights to be unfair, so if the statute is clearly confirmed, debtors win a great majority of cases. In other words, the *method of asserting the statute of limitations on claims* is a debtor's right strongly recognized by the court.
The problem is that debtors fear legal action and miss the procedure or give up due to lack of information. However, this lawsuit provides the most reliable safety net for the debtor.
The first step is typically to assert the completion of the statute via **phone or certified mail**.
Frequently Asked Questions (FAQ)
Q1. What is the core procedure to follow first when asserting the completion of the statute of limitations?
A1. The first thing to do is to verify the claim's limitation period and whether it has been interrupted. Based on the statute periods for each claim type (Civil 10 years, Commercial 5 years, Short-term 3 years), you must check the final payment date and records of legal action. This is the fundamental step for determining if the statute of limitations can be asserted; collection calls do not count as grounds for interruption.
Q2. What is the safest way to effectively document the assertion of the completed statute?
A2. Sending certified mail (content certification) is the most reliable method. By including the grounds for completion (period passed, no legal action, etc.), claim information, and the phrase "I raise the defense of the completion of the statute of limitations," legal grounds and evidence are secured simultaneously. It is more reliable than a phone assertion and serves as crucial evidence in court during future disputes.
Q3. What is the countermeasure if the creditor continues collection efforts despite the assertion of the completed statute?
A3. If the creditor does not acknowledge the defense of the completed statute or continues collection, the issue can be resolved with a Lawsuit for Confirmation of Debt Non-Existence. This lawsuit is a procedure that legally confirms the non-existence of a claim that has already been extinguished by the statute of limitations; a win will block all collection and compulsory execution.
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