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It looks like debt collection is coming. Please tell me about the extinctive prescription of claims.

Hello. I run a food ingredient supply business in Ulsan. My company's situation is so bad that I have been unable to make deliveries to a place I always did business with for several months now.. They trust me and send the payment every month.. I feel so sorry that I cannot even bring myself to say that I will deliver later. It looks like the other party will proceed with a debt collection lawsuit, so please tell me about the extinctive prescription of claims.

extinctive prescription of claims

Answer to Related Inquiry

Author: 정찬우

Hello.

It seems that you are worried because, even though you have been receiving the delivery payments from your client for several months, you have not been able to make the deliveries.

If this situation continues, your client may consider debt collection or legal measures, so you need to learn about the extinctive prescription of debt collection, which is one of the related legal issues.

First, the extinctive prescription of claims is generally classified as follows.

- Civil claims : 10 years

- Commercial claims : 5 years

The food ingredient supply business you operate is a for-profit enterprise, and if your client is likewise such an enterprise, this transaction is highly likely to constitute a commercial claim.

Therefore, the other party, who is the creditor, must exercise their legal rights, such as filing a lawsuit and an application for a payment order, within five years from the date each payment claim arose.

If that period passes, you can assert the completion of the extinctive prescription, and the claim may legally be extinguished.

However, there is a point to note.

1. If the debtor acknowledges the existence of the claim or repays even a portion of it, the extinctive prescription is newly counted from that point.

2. Even when the other party proceeds with legal procedures, such as a certified content-proof mail, an application for a payment order, or the filing of a lawsuit, the prescription is interrupted and thereafter begins anew.

Therefore, if you leave the current situation unattended, your client may take legal measures, and in practice, whether the debt is performed under the principle of good faith may become an issue more quickly than the prescription.

Before the relationship of trust collapses, it is advisable to honestly explain your current circumstances to your client and to discuss future response measures together.

If you need representation for a settlement or a defense against the allegations, you may wish to consult with an attorney experienced in such cases.