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

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 even pay voluntarily, but the creditor can no longer compel them through the proper action. 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 504 and 531).

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). And, once that route is also exhausted, a collection action may be available.

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?

The limitation period can be interrupted — which resets the count, restarting the period. The main causes (art. 202 of the Brazilian Civil Code):

• Protest of the debt instrument at the protest registry;

• Valid service of process on the debtor (that is, the filing and service in the action);

• 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 restarts the limitation period and gains time to negotiate or file the action. Likewise, obtaining a debt admission from the debtor (preferably with two witnesses, becoming an enforceable instrument) interrupts the period and strengthens the collection. Knowing these causes is what makes it possible to manage the limitation period instead of being caught off guard by it.

Practical example: the forgotten check at Auto Peças Veloz

Auto Peças Veloz, in São Paulo, had in a drawer a check for R$ 25 thousand that had been returned eight months earlier. 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 531), well within time. The check, although time-barred for enforcement, remained written evidence of the debt. Auto Peças Veloz filed the monitory action, the debtor did not challenge it, and the credit was established as a judicial instrument and recovered. 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. Protesting in time restarts the period and protects the credit.

• 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.

• Use the protest to interrupt the limitation period when necessary.

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

• Seek the debtor's acknowledgment of the debt (admission), which interrupts the period.

• 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 debt does not disappear, but it becomes judicially unenforceable. 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 504 and 531).

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?

Among other causes, the protest of the debt instrument and valid service of process on the debtor interrupt the limitation period, restarting the count (Brazilian Civil Code, art. 202). The debtor's acknowledgment of the debt (for example, through an admission or a partial payment) may also interrupt it. That is why protesting early and filing the action in time are ways to protect the credit against loss of the period — and to gain breathing room to negotiate.

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, using the protest to interrupt them 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.