Legal or judicial proceedings must be completed within a certain time frame. Failure to meet this deadline results in the procedure becoming time-barred, known as foreclosure. The debtor no longer owes anything and the creditor can no longer take any action.

1) Principle

When time-barring occurs, the debtor is released from their obligations; this is known as foreclosure.

Therefore, foreclosure allows the debtor (the person who owes something to another) to have this obligation extinguished. The other person, the creditor, no longer has the possibility of taking legal action or continuing the proceedings because it is too late to take action or recover the debt.

The legally prescribed time limits have expired.

The purpose of the statute of limitations is to allow the debtor to no longer have to prove the alleged facts after a certain period of time and to oblige the creditor to be diligent in asserting their rights. It is a form of the right to be forgotten, as judicial error increases with the passage of time.

2) Calculation of time limits

There are many limitation periods and they are found mainly in the civil code but also in criminal, economic, social, tax law, etc.

The purpose of this article is not to consider all possible scenarios for limitation periods in economic life, but to determine when such a limitation period applies when a bailiff arrives to seize the assets of a debtor who is not paying their debt.

The general rule is a basic limitation period of ten years. However, there are so many exceptions that you should check your specific case with a lawyer specialising in the relevant field.

To calculate the limitation period, every day counts, including Sundays and public holidays. The calculation is made from midnight to midnight. It begins the following day and the limitation period expires when the last day of the term is completed.

A formal notice (which complies with the conditions of Article 2244 of the Civil Code) sent by post on Monday 7 March 2022 takes effect at midnight on Thursday 10 March 2022. The limitation period begins at midnight on Friday 11 March 2022 and, if it is one year, ends at midnight on Friday 10 March 2023.

3) Interruption of the limitation period

 The limitation period may be interrupted or suspended. Here too, there are many different cases, and it is in your best interest to consult a bailiff to calculate the various interruptions or suspensions that have occurred in the calculation of the period.

The interruption of the period means that a new period starts from scratch. A valid interrupting act triggers the start of a new limitation period.

This is the case with an acknowledgement of debt: a new recovery period begins on the day the acknowledgement of debt is signed, even if the initial debt is already several years old.

Other examples of interruptions include seizure, judgement, summons or legal proceedings.

4) Suspension of the time limit

 In addition to interruption, there is also suspension of the time limit, for example during the period when the case is being dealt with by a court. This period of suspension is added to the initial time limit.

5) Is there also a limitation period for the enforcement of a judgment?

Yes, there is also a time limit for enforcing a judgment or court decision. The basic ten-year period begins at the time of the judgment, as a court decision is an interruptive act. A new period begins without taking into account any periods that have already elapsed in the past.

During these ten years, the court decision can be “enforced”. This means that a bailiff may appear to obtain from the debtor that he complies, that he pays, that he fulfils what he has been ordered to do.

According to the creditor's instructions, the bailiff may also seize the debtor's movable or immovable property. Each act of seizure interrupts the limitation period and a new ten-year period begins each time!

When the debtor pays part of their debt to the bailiff or creditor, this is again considered an interruptive act, which renews the ten-year recovery period.

In other words, the creditor must take no further action for ten years for the judgment to cease to have effect and the debtor to be released from their sentence.

6) Is there a time limit for the removal of seized furniture?

Sometimes the bailiff seizes the debtor's assets, often to put pressure on them and force them to pay more than they are offering.

This seizure of assets that have not been removed or sold expires after one year and the seizure must be renewed. If payments are made in the meantime, this time limit is extended.

7)  Practical example

 A chartered accountant issues an invoice for services completed on 16 December 2021 and sends it to AVZOR. There is no specific due date on the invoice. The limitation period for a chartered accountant's claim is five years (an exception to the basic ten-year period) and begins on the date of the invoice.

• On 15 January 2022, the chartered accountant sent a reminder to AVZOR and a second one on 31 January 2022. The reminders did not interrupt the limitation period.
• Since no response was provided and no payment was made, the invoice is presumed to have been accepted. Since the reform of the rules of evidence, Article 1348bis, paragraph 4 of the Civil Code (CC) provides that an invoice accepted by a company has probative force with regard to that company. This is now the legal presumption. Article 1352 CC goes on to specify that this legal presumption exempts the person in whose favour it exists from providing any proof.
• As a result of this presumption of acceptance, on 10 February 2022, the chartered accountant sent a formal notice (which complies with the conditions of Article 2244 CC) to AVZOR. This is an interruptive act and a new limitation period of five years begins on that date.
• With no further news, the chartered accountant summons AVZOR for payment on 16 March 2022. The summons is an interruptive act and a new limitation period of five years begins on that date.
• The first hearing took place on 21 March and the debtor AVZOR was absent. The court ruled against AVZOR in a judgement dated 20 April 2022. During this period from 21 March to 20 April, the limitation period was suspended. The five-year limitation period that began on 16 March 2022 was therefore extended by one month. However, this suspension is not incidental because the judgement is an interruptive act and a new five-year period began on the day of the judgement.
• The bailiff served the judgement on AVZOR on 20 May 2022. Service is an interruptive act and a new five-year period began on the day of the bailiff's act.
• On 24 July 2022, the bailiff received a small payment from AVZOR. This was the first and last payment. The payment is an interruptive act and a new five-year period began on the date of this payment.
• In desperation, on 12 September 2022, the chartered accountant asked the bailiff to proceed with a preventive seizure of the car belonging to AVZOR and of the debts owed to AVZOR by its customers. These acts interrupt the limitation period and trigger a new five-year period.
• However, the seized car is not removed by the bailiff because the accountant has already incurred significant procedural costs while receiving only one small payment. This seizure is no longer valid after one year, but it can be reinstated by a new writ.
• Only if the chartered accountant takes no further action within five years of the preventive seizure AND the debtor AVZOR pays nothing, would the limitation period for recovery of the judgment be acquired by AVZOR.

8)  Table of the main specific economic limitation periods

The general basic period is ten years but specific periods exist:

9) Sometimes fraudulent practices of collection agencies

 As in all professions, there are good people and others with bad intentions. Some creditors sell their debts to a debt collection agency or a securitisation company. There is nothing to prevent this, and the debtor finds themselves facing a new creditor, who is often less understanding and more aggressive.

In France, companies were convicted at the end of 2021 for failing to comply with the statute of limitations on interest (two years in France and five years in Belgium).

If you encounter difficulties, do not hesitate to contact the economic inspection services.

10) Conclusion

Never let things drag on and keep the dialogue open. If necessary, call in a mediator to find a solution that is acceptable to all parties.

About the author

Jean-Pierre Riquet,  Legal & Tax Advisor and Associate Professor at Ephec

This article is not intended as advice or consultation, but simply as information. The author and editorial team strive to ensure the quality, timeliness and reliability of the information provided, but cannot be held liable for it.