Time-barring of debts: what are the limitation periods to collect a credit?

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In debt recovery, time is the most silent adversary. Every debt has a period within which it must be collected — and, once it elapses without action, the creditor may lose the right to demand payment through the most appropriate judicial route. This is the limitation period. Many companies discover this too late, when a credit that seemed secure can no longer be enforced.

The good news: the limitation period can be managed. By knowing the periods of each type of credit, knowing what interrupts them (such as the protest) and acting in time, the company protects its assets. In this guide you will find the main periods, what to do to avoid losing a credit, and why, even with a time-barred instrument, not all is necessarily lost.

What is the limitation period (prescription) of a debt?

The limitation period (prescription) is the loss of the right to collect a debt in court by reason of the passage of time. The law sets, for each type of credit, a period: within it, the creditor can demand payment; once the period runs out (without collection and without a cause that interrupts it), the creditor loses the claim to judicially demand the credit through the corresponding route.

Important: the debt does not disappear — it simply becomes unenforceable through the appropriate judicial route. The debtor may pay voluntarily, but the creditor can no longer compel payment through that claim; STJ decisions also reject out-of-court collection of time-barred claims. For the company, the practical consequence is direct: letting a credit become time-barred is equivalent to giving it up. That is why managing periods is an essential part of debt recovery.

What are the limitation periods of the main credits?

The periods vary according to the document and the route. The most relevant ones in day-to-day business:

• Check (enforcement): 6 months, counted from the end of the presentation period (art. 59 of Law 7,357/85).

• Duplicata: 3 years against the drawee, counted from maturity (art. 18 of Law 5,474/68).

• Promissory note and bill of exchange: 3 years (against the principal debtor).

• Liquidated debt in a public or private instrument (e.g., a contract): 5 years (art. 206, §5, I, of the Brazilian Civil Code).

• Monitory action (ação monitória) for a check or promissory note without enforceable force: 5 years (STJ Precedents 503 and 504): against the issuer, time runs from the day after the date shown on the check or the promissory note's maturity, respectively.

There is also a general period of 10 years (art. 205 of the Brazilian Civil Code) for claims without a specific period. As can be seen, the same credit may have different periods depending on the route (enforcement of the check is 6 months, but the monitory action is 5 years). Identifying the correct period is a matter of legal analysis.

Can a time-barred debt no longer be collected?

Through the direct route, no — but not always is everything lost. This is where strategy makes a difference. When the period for enforcement of an instrument runs out (the check, for example, after 6 months), a monitory action (ação monitória) is often still available, with its own period (generally 5 years). A collection claim depends on the underlying transaction and an unexpired limitation period; it is not an automatic extension, and the periods do not run consecutively.

In other words: the end of one period may merely change the route — from enforcement to the monitory action, for example — and not eliminate the possibility of recovery. That is why a “time-barred” instrument should not be discarded without first checking whether another route is still available. Reviewing the portfolio of old credits, with guidance, frequently reveals amounts that can still be collected.

What interrupts the limitation period?

Interruption is allowed only once for the same legal relationship, subject to the statutory conditions. A later protest does not revive an already time-barred claim. The main causes (art. 202 of the Brazilian Civil Code):

• A legally effective bill protest, under the rules for that instrument;

• The judicial order for service, subject to the required procedural steps and the relation-back conditions in CPC art. 240;

• Acknowledgment of the debt by the debtor (for example, a debt admission or a partial payment).

This mechanism is strategic: by protesting an instrument whose period is approaching its end, the company may interrupt the period if the act is effective and no previous interruption occurred. Likewise, obtaining a debt admission from the debtor (preferably with two witnesses, becoming an enforceable instrument) may have effects depending on its content and legal requirements, without permitting successive interruptions. Knowing these causes is what makes it possible to manage the limitation period instead of being caught off guard by it.

Hypothetical example: the check at Auto Peças Veloz

Imagine a fictional company, Auto Peças Veloz, holding a R$ 25,000 check whose presentation period ended eight months earlier, with no effective interruption. When it sought to collect it through enforcement, it discovered that the 6-month period to enforce the check (art. 59 of the Check Law) had already run out. For a moment, it seemed the credit was lost.

It was not. With guidance, the company found that the monitory action (ação monitória) was still available — with a period of 5 years (STJ Precedent 503), well within time. The check, although time-barred for enforcement, remained written evidence of the debt. If the procedural requirements are met and the debtor neither pays nor challenges the order, a judicial enforcement title may arise; that does not guarantee available assets or actual recovery. The lesson is twofold: a lost period is not necessarily the end — but, had the company protested the check in time, it would have interrupted the limitation period and also preserved the faster route of enforcement. Managing periods is money.

The most common (and costly) mistakes

• Leaving the credit in a drawer. The period runs silently; by the time you remember it, it may have elapsed.

• Not knowing the period of each instrument. Check, duplicata and contract have different periods.

• Discarding a “time-barred” instrument. A monitory action or a collection action is often still available.

• Not using the protest to interrupt the period. Its effect depends on the instrument, an unexpired period and no previous interruption.

• Relying on memory. Without organized control of the periods, credits are lost through inaction.

Checklist: how not to lose credits to the limitation period

• Map each credit with its due date and its limitation period.

• Prioritize the credits whose period is approaching its end.

• Assess whether a bill protest can interrupt the period within the legal limits.

• When you identify a “time-barred” instrument, check whether another route (monitory action, collection action) is still available.

• Review any unequivocal debt acknowledgment and its effects; do not assume another interruption.

• Carry out the diagnosis of the periods with a Business Law lawyer.

Frequently asked questions about the time-barring of debts

What is the limitation period (prescription) of a debt?

The limitation period (prescription) is the loss of the right to collect a debt in court due to the passage of time. Each type of credit has a period: once it elapses without collection (or without a cause that interrupts it), the creditor loses the claim to demand payment through the appropriate judicial route. The obligation may remain for voluntary payment; STJ decisions also reject out-of-court collection of time-barred claims. That is why knowing the period of each credit and acting within it is essential in business debt recovery.

What are the limitation periods of the main debt instruments?

For enforcement of the check, six months counted from the end of the presentation period (art. 59 of Law 7,357/85). For the duplicata, three years against the drawee (art. 18 of Law 5,474/68). For the promissory note and the bill of exchange, three years. For a liquidated debt set out in a public or private instrument, five years (art. 206, §5, I, of the Brazilian Civil Code). And the monitory action (ação monitória) for time-barred checks or promissory notes is five years (STJ Precedents 503 and 504): against the issuer, time runs from the day after the date shown on the check or the promissory note's maturity, respectively.

Can a time-barred debt no longer be collected?

Through the direct route, no — but not all is necessarily lost. When the period for enforcement of an instrument runs out, a monitory action (ação monitória) is often still available (with its own period, generally five years), or a collection action. In other words, the end of one period may merely change the route, rather than eliminate the possibility of recovery. A lawyer checks which path is still available for your credit.

What interrupts the limitation period?

Brazilian Civil Code art. 202 permits only one interruption for the same legal relationship, through legally effective causes such as a bill protest or judicial steps for service, subject to CPC requirements. The debtor's acknowledgment of the debt (for example, through an admission or a partial payment) may also interrupt it. Prior interruptions must be checked: negotiations alone do not stop time running, and a later protest does not revive a time-barred claim.

How do you control the limitation periods of a company's credits in São Paulo?

By keeping organized control of the outstanding credits, with the due date and the limitation period of each one, and acting (protest, negotiation or action) before they run out. For portfolios with many debtors, it is worth prioritizing the credits whose period is approaching its end. A Business Law lawyer in São Paulo helps map these periods and define the order of collections so that credits are not lost through inaction.

Do I need a lawyer to know whether my debt has become time-barred?

It is highly recommended. Calculating the limitation period involves identifying the type of credit, the start date of the period, any causes of interruption or suspension of the limitation period, and the appropriate route. An error in this analysis may lead to filing an action doomed to dismissal — or to discarding a credit that could still be collected by another route. A Business Law lawyer in São Paulo carries out this diagnosis reliably.

Time is credit: do not let it become time-barred

The limitation period is the most silent way to lose money: the credit exists, the evidence exists, but the period has elapsed. Knowing the periods of each instrument, assessing a protest and the limits of its effect and acting before they run out is what separates a healthy credit portfolio from a set of unrecoverable amounts.

And, even when a period runs out, it is worth remembering: the route may change (from enforcement to the monitory action), without the credit being necessarily lost. Reviewing old documentation, with guidance, often reveals opportunities for recovery.

At Falchet e Marques Sociedade de Advogados, a firm in São Paulo (Av. Paulista), we work in debt recovery and Business Law — mapping limitation periods, defining the appropriate route (enforcement, monitory action, collection) and using the protest to preserve credits. If your company has outstanding credits, it is worth checking the periods before they become time-barred.

Talk to our team on WhatsApp: +55 11 95901-1854 — and protect your company's credits against the limitation period.