Do you ever keep track of the limitation period for your claims and have it noted in your calendar when to interrupt it? Chances are your answer is ‘no’. But be careful: this could cost you money. The right to enforce payment of your claim does not last forever; your claim can expire.
Limitation period: time really is money
Limitation means that a claim can no longer be enforced against your debtor after a certain period has passed. How long this period lasts depends on the nature of your claim. Often there is a limitation period of five years, but it can also be longer or shorter. Sometimes you can influence the length of the limitation period yourself; in most cases, you can make agreements about this with your counterparty (for example, in your general terms and conditions).
Don’t let your claims go up in smoke
But what if the end of the limitation period for your claim is (almost) approaching? Should you then throw your invoice in the trash? Fortunately, the answer is ‘no’. A limitation period that has not yet expired can be interrupted. Interruption means that limitation is prevented and a new limitation period starts to run. Interruption can take place in the following ways:
- Initiating legal proceedings for your claim
- Sending a written reminder that clearly shows you are still asserting your claim
- Recognition of the claim by your debtor
Important: you can only interrupt the limitation period if it has not yet expired. So don’t wait until it’s too late — take action with your debtor, but certainly also with Aertery.
