In Brazil, the number of debtors reached 66.5%, according to studies by the National Confederation of Trade in Goods, Services and Tourism. If you are among these people, did you know that your debt expires? Then read on.

Among so many financial issues, some people are unable to pay all their overdue bills.

Today, we're going to show you what happens to unpaid expenses over the years, and how you can resolve those backlogs.

Yes. 

If you have a debt, be aware that after the legal term of five years, it expires.

This means that all unpaid bills have an established term of five years, and creditors can only charge debtors within that period.

That is, after this period, the name will be removed from credit protection bodies, such as SPC and SERASA, but you still owe your creditors.

And, in cases of outstanding debts with financial institutions, you may no longer be able to open accounts at other institutions, as your pending debts are stored at the Central Bank.

So, it is important to mention once again that, although the debt expires, it will not cease to exist.

As we mentioned earlier, when the debt expires, creditors lose the right to continue collecting debtors.

That is, when the debt expires, only the name of the defaulting debtors is withdrawn from the credit protection agencies.

So anyone who makes a query of that name in the credit protection services will not find any financial pending.

However, if the debts are with financial institutions, they will continue to be registered with the Central Bank's Credit Information Service.

Therefore, this limitation may imply the refusal to grant credit, for example, causing problems over the years.

This question is a bit complex, as the debt expires does not necessarily mean that the score will increase.

This is because, the score indexes are based on a consumer data survey, so all financial pending items that are in the CPF will be analyzed and recorded.

That is, if only a single debt has expired, and there are still other outstanding debts in the CPF, there will be no significant change in the score.

However, if there is a relevant debt in that name, and the person makes the payment, it may be that in the medium or long term, the score will increase.

Therefore, there is no way to predict whether the score indices will increase, but, as the pendency is removed from credit protection agencies, it is a possibility.

According to the Consumer Defense Code, the registration of the debtor's name in the credit protection services must be withdrawn after a period of five years, if before that, the prescription of the collection action has not occurred.

That is, the name of debtor consumers can only be kept in credit protection services for a maximum period of five years.

And, after that period, credit protection services will not be able to provide any information that could prevent or hinder access to credit for those consumers who were then in default.

So, the term lapse is related to the withdrawal of the consumer's name from credit protection agencies after 5 years.

That is, it would be a way for the agencies to forget about the debtor consumers.

Already, the prescribing time, is a legal term and means that the creditor will no longer be able to sue the consumer in court.

And, it is important to mention, that even if the limitation period is also 05 years, there is no relation with the expired debt.

According to the Consumer Protection Code, in 3 years, the following debts prescribe:

And yet, there are debts that prescribe in just one year, they are:

There are also debts that prescribe in 06 months:

There are debts that prescribe in 10, 5, and more than 10 years, you need to do research to find out exactly which of these deadlines you fit.

As we mentioned above, the prescribed debt does not mean that it ceased to exist, therefore, the financial pendencies remain open.

So, it is still necessary to settle the pendencies, so that in the future, a possible assignment of credit is not barred for the consumer.

To answer this question, the answer is simple: it is not worth waiting five years for it to expire.

This is because, during this period, your name will be full of restrictions, as well as financial issues.

And, moreover, when the debt expires, it does not mean it ceases to exist, as we mentioned, so there is no advantage in waiting for it to be withdrawn only from the credit protection agencies, since it will continue to exist.

Therefore, the best option is always to pay all outstanding financial obligations.

To settle outstanding debts, simply contact the bank or company you owe directly.

And, in addition, it is recommended that you also request a review of the contract, as well as negotiate new forms of payment.

That's because, if so far you haven't been able to pay off the pendencies, you'll hardly be able to pay off the same way.

So, the negotiations serve to soften, and give a greater guarantee that that pendency will be settled by the debtor.

Therefore, contact your creditors and schedule a meeting to find the best solution together.

According to article 205 of the Brazilian Civil Code, if the creditor files a collection lawsuit, the 5-year limitation period will no longer be valid.

This is because, from then on, the collection action process time will begin to take effect.

So, if the financial institution goes to court 1 year or 1 day before the debt expires, the process will continue to exist, taking advantage of its processing time, and not the debt's statute of limitations.

However, if the exact 05 years pass, then the creditor loses the right to claim that debt in court.

But, he may still try to negotiate directly with you to pay off all your financial debts.

Therefore, we do not recommend that you wait for the debt to expire, as you may run the risk of responding to a lawsuit, and the deadline being extended.

If even after 5 years of debt maturity, the CPF is still negative, you can demand your withdrawal rights from the name of the credit protection bureaus.

This is because, after the stipulated legal period, the name of the defaulting consumer must be removed immediately.

So, if the withdrawal does not happen, even because of the company's own error, the consumer can be financially compensated.

Hence the importance of always being aware of the movements that happen with your CPF.

If the company insists on filing a collection lawsuit even after the 5-year period, the process will not proceed.

However, if there is little time left to prescribe, the deadline is suspended, and the process will continue.

As we mentioned above, the expired debt does not mean that it ceased to exist, only that it will no longer appear in credit protection services.

That is, the company still has the rights to charge you, as long as it is not done in court, and will not even be able to insert your name in the SPC or SERASA.

It is important to mention that this charge should be moderate, thus not causing problems for the consumer, that is, being abusive.

This is because the Consumer Defense Code protects consumers from aggressive, abusive charges that lead consumers to embarrassment.

So, we have, as an example, insistent calls, often during the consumer's working hours, causing problems for him.

If this occurs, the consumer may claim compensation for moral damages for the damage suffered before that company.

For this, it is recommended that the consumer keep all the necessary evidence, from screen shots of cell phone conversations to even testimonial evidence.

Another tip is to write down the names of the collectors, as well as keep all the possible threats you may suffer.

Therefore, always remember that the Consumer Protection Code came to protect consumers from abusive behavior by companies and institutions.

If the name has been incorrectly registered with the credit protection services, either due to debt discharge or prescription, the company must withdraw immediately.

This is because, according to the Consumer Defense Code, it is the right of consumers that the name be removed after payment of debts or prescription of debt.

If this does not happen, and the consumer continues to have his name registered with credit protection agencies, he may be compensated in an action for moral damages.

In practice, debts do not cease to exist, so it is recommended that they are all paid off.

Therefore, even with a clean name before companies and institutions, you may have some financial losses, such as:

And, in addition to these, there are also several other losses, especially if your debts are with financial institutions.

That's because, even with the name withdrawn from the credit protection bodies, the pending issues remain at the Central Bank.

And then, these institutions search there for all their outstanding issues, and may refuse to grant credit.