Month: December 2019

Limitation of debt – when does it occur?

by Sara Watson
Polish law contains a precise definition of the period of limitation of debt. It is in the Civil Code. However, you should know that despite the fact that there is a limitation period for the debt, it does not expire and the debtor ceases to be in effect. Therefore, the debtor is not obliged to pay his debt. An exception to this rule may be a waiver of the right to avoid paying the debt. In the following article, we explain in detail the legal consequences of the limitation period and after which period of time it occurs.

The fastest prescription for fines

The shortest limitation period applies to unpaid fines and claims arising from the contract of carriage. Under Polish law, they expire after twelve months. Many people do not care about fines and prefer not to pay them back – this is reprehensible behavior. Many people think that the debtor will not try to recover their money and that the debt will expire. People who count on it often do not calculate even how many years must pass for the prescription of the debt to take place. However, there is a huge risk in this respect because the creditor has the right to take the case to court. Therefore, additional fees may be charged, and the process itself can take a very long time (even several years). Therefore, calls for payment of fines must not be underestimated, because after some time they can turn into several times higher costs.

The most important limitation periods

The Civil Code clearly states the limitation periods. The legislator distinguishes between two basic terms:
  • three years for claims regarding business operations or periodic statements,
  • six years for all property claims or claims established by final court judgments.

Limitation of long-term debt

As regards the limitation of long-term debt, the case is somewhat different. It should be remembered that not every liability expires after a year or two. Liabilities that arise by virtue of law (taxes) are barred after five years from the end of the calendar year in which the repayment deadline expired. In the case of debts established by a court judgment, they become barred after six years and relate to claims that have been established by final court judgments. Many people are also wondering when inheritance debt expires. If the heir, within six months of the day on which the inheritance was opened, makes a declaration of acceptance of the inheritance, he will be liable in the same way as the debtor for the obligations he has incurred. Accordingly, the creditor has the right to demand repayment of the debt even if he was not aware that the deceased person had any debts.

What to do to stop the limitation period?

Persons prosecuting debtors in order to stop the limitation process may perform all court activities (including a lawsuit), initiate mediation or induce the debtor to recognize the claims being made.

Credit for precious metals

by Sara Watson
The stable gold price and the prospect of an increase in value give the incentive to buy gold as quickly as possible. In addition, silver and platinum are also suitable for investment. If the financial means are not available, the purchase can be realized through a loan for precious metals.

Buying precious metals with credit – not without knowledge!

Buying precious metals with credit - not without knowledge! One thing should be said in advance – although gold is one of the safest forms of investment, the future of the gold price is generally uncertain. The same applies to silver and platinum. If you want to take out a loan to buy gold, you should first take a closer look at the gold price and its development, as well as future prospects. It is undisputed that in economically difficult times nobody will be left with gold, silver or platinum, but the price at which a sale can be made should be analyzed in advance. The gold market is well positioned. Investors can choose from gold bars, gold coins, nuggets, shares in gold mines. The so-called small trading in gold is also an option, but it can quickly become a gigantic debt trap for inexperienced people. Small Gold is a leveraged financial product that is highly speculative. To put it simply, it is speculated whether the gold price will go up or down, and profits or losses will be booked accordingly. There are always cases where speculators take out a high credit for Gold small just to make up for losses.

What type of credit for buying precious metals?

What type of credit for buying precious metals? Both the call credit and the installment loan are suitable for the gold purchase in its various forms. The possible loan amounts are in the five-digit range and thus also cover higher investments. However, it should be borne in mind that collateral may be required in the event of poor creditworthiness or low income. Putting a house at risk just to take out a loan to buy gold – is strongly discouraged. Investors should look at the investment realistically and that is not possible without sound background knowledge.

Conclusion on the precious metal loan

Conclusion on the precious metal loan Buying gold never remains without a certain risk, because who knows what the market looks like at the time when you want to sell the gold again. Therefore: If a loan for precious metals, then manageable and rather low. Gold price savy people who buy or sell at the right time can even make a profit with a loan. But as already mentioned – this profession is reserved for those who have a clue and therefore not for the layperson.