Debt collection seems to be coming - please tell me about the statute of limitations on claims.

Hello.

It seems you are concerned because you have been receiving payment from a customer for several months but have not been able to deliver supplies.

If this situation continues, the customer may consider debt collection or legal action, so it is necessary to learn about the statute of limitations on debt collection, which is one of the related legal issues.

First, the statute of limitations on claims is generally divided as follows:

- Civil claims: 10 years

- Commercial claims: 5 years

Since the food ingredient supply company you operate is a profit-seeking business and if the customer also falls under the same, this transaction is highly likely to constitute a commercial claim.

Therefore, the other party as the creditor must exercise legal rights such as filing lawsuits and payment orders within 5 years from the date each payment claim arose.

If that period passes, you can claim completion of the statute of limitations, and legally, the claim may be extinguished.

However, there are points to note.

1. If the debtor acknowledges the existence of the claim or makes even a partial repayment, the statute of limitations starts anew from that point.

2. Even when the other party proceeds with legal procedures such as certified mail, payment order applications, or lawsuits, the statute is interrupted and starts anew thereafter.

Therefore, if you neglect the current situation, the customer may take legal action, and rather than the statute of limitations, the issue of debt performance based on the principle of good faith may become a problem more quickly in practice.

Before the trust relationship breaks down, it is desirable to honestly explain the current situation to the customer and discuss future response measures together.

If settlement representation or charge defense is needed, we recommend consulting with an attorney experienced in such cases.