The National Assembly adopted at first hearing amendments to the Obligations and Contracts Act, which will vanish the figure of the so called ”endless debtor”. A new article is going to be introduced, which declares that with the expiring of a ten-year prescription period, all receivables against individuals shall be deemed cancelled, notwithstanding of any interruptions, except when the debt is rescheduled.
The legislator motivates its decision with the wide spread practice in this respect – citizens’ obligations or procedures of consumer in the entire European Union.
With the introduction of the absolute prescription, the regime of the common prescription, regulated by Obligations and Contracts Act shall remain intact. The debtors will still be allowed to take advantage of the 3 and 5-year prescription periods. The problem with these periods is that they can be easily interrupted and following any separate interruption they commence running again. Therefore, any individual which is a debtor can be pursued by its creditors for an unlimited period of time.
The new article will not be applied for debts of individuals, who perform commercial activity as sole-proprietors, as well as on debts, originating from delict or unjust enrichment.
Оpinions on the amendments will be accepted until September 14, 2020.
