In many cases, our clients come to us claiming that they have been the subject of an unexpected enforcement action arising from a long forgotten relationship dating back many years, and often they no longer remember why, to whom or for how much they were owed. In such cases, it is necessary to examine retrospectively whether the claim can still be enforced against them.
If the claim or the right to enforce it has become time-barred, this is good news for the client, because in this case the enforcement proceedings against him can be terminated. In such cases, the historical background should be examined and assessed in the chronological order of the events in the legal relationship and the actions of the parties.
The general rules on limitation periods are set out in the Civil Code (CC). Here, it is also necessary to consider whether the legal relationship on which the limitation period is based is to be examined under the current Civil Code or the earlier "old" Civil Code, in force until 25 February 2013, because the rules on limitation differ in the two cases.
Under the current Civil Code, claims are subject to a limitation period of five years, subject to statutory exceptions. The limitation period is shorter for claims arising, for example, from parking, utilities, internet, mobile and fixed telephone services. But we can also set a shorter limitation period in writing in an individual contract, with the proviso that limitation cannot be completely excluded. The limitation period starts to run when the claim becomes due. If a time-barred claim cannot be enforced in court proceedings, but the debtor must expressly invoke this, because if he does not make a declaration to this effect, a time-barred claim will also be judged by the court and recovered by the bailiff, because the limitation period cannot be taken into account ex officio in court or administrative proceedings. If the time-barred claim is nevertheless paid by the debtor, it can no longer be recovered on the grounds that it is time-barred.
Dr. György Zalavári LL.M lawyer and managing partner of Ecovis Zalavári Legal Hungary , also points out that the limitation period is interrupted if the debt is acknowledged by the debtor, if the parties reach an agreement; or if the creditor initiates court proceedings and a judgment is obtained.
In such cases, the limitation period starts again. If the debtor submits a claim to the bailiff under Article 41 of Act LIII of 1994 on Judicial Enforcement (Act LIII of 1994 on Judicial Enforcement) that the claim subject to enforcement is already time-barred under the provisions of the Civil Code or other applicable law, the bailiff is obliged to send this request to the applicant for enforcement. The debtor has 15 days to make a statement on the merits in response to the debtor's presentation. If he acknowledges that the claim is time-barred within this period, he will have to repay any sums already received during the enforcement and will also bear the costs of enforcement. If he has then admitted the debtor's claim to be true and has paid the sums due and determined by the bailiff, the enforcement proceedings will be terminated, and the debtor will be exempted from further enforcement actions.
However, if the claimant for enforcement does not admit the limitation plea and the bailiff is unable to terminate the proceedings, the debtor must prove his claims on limitation in court in a suit for termination of enforcement in order to terminate the case. However, it should also be noted that the limitation period for a claim or enforcement right is interrupted by any enforcement action.
Thus, if, from time to time during the procedure, the bailiff takes some verifiable action, the limitation period is restarted at each procedural step and can last for years, almost without time limit.
If you need to investigate the statute of limitations for a claim, contact Dr. György Zalavári LL.M lawyer and managing partner of Ecovis Zalavári Legal Hungary.
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