Skolų centras

The law provides for a general limitation period of ten years. Therefore, it is possible to apply to the court for an unpaid debt within a period of ten years. If you do not apply for the debt in court during this period, the debt remains only „moral”.

In the event that you have a court-ordered and unpaid debt, you must submit the enforcement document to the bailiff within the five-year statute of limitations.

The law does not provide for a statute of limitations upon submission of an executive document for forced collection to the bailiff.

The total amount of money that the debtor must pay, in cases where payment is not made on time, consists of the following amounts (out-of-court recovery):

– unpaid amounts of monetary obligations, i.e. debts

– compensatory interest (or penalty/delay interest if the amount is higher)

– profit interest if stipulated in the contract

– expenses related to recovery of losses outside of court

Interest performs several functions – a fee for lending money (profit interest) and/or compensation to the creditor for losses incurred due to late payment (compensatory interest). Both profit and compensatory interest are paid only in the event of a monetary obligation, i.e. the debtor having the obligation to transfer the corresponding amount of money to the creditor and the creditor acquiring the right to demand payment from the debtor accordingly.

Profit interest is the remuneration paid by the borrower to the creditor for the use of another’s money, regardless of the results of that use. The debtor pays interest on payment (profit) in loans, bank deposits, bank accounts and other contracts.

Compensatory interest – compensation of the creditor’s minimal losses incurred as a result of the debt not being repaid on time. If the borrowed money is not returned on time, if the bill for goods and/or services is not paid, the creditor suffers losses because he cannot use the money himself. The specifics of compensatory interest also determine that no force majeure circumstance, even beyond the debtor’s control, exempts the debtor from paying this interest, because the debtor who does not pay money on time de facto becomes unjustly enriched at the creditor’s expense. The debtor may be released from the obligation to pay compensatory interest only if the obligation is not fulfilled or is not fulfilled properly due to the fault of the creditor.

The amount of interest (tariff) depends on whether the interest prescribed by law or the interest agreed upon by the parties is applied.

According to the law (Civil Code of the Republic of Lithuania), the creditor can demand compensatory annual interest of 5 percent for the amount to be paid if the deadline is missed, and if both parties to the contract are entrepreneurs, then annual interest of 6 percent is paid for the missed deadline.

Non-fulfillment of payment on time or non-fulfillment of other terms of the contract by the borrower may have various consequences:

Consequences provided for in the contract

Termination of the contract (according to the contract or the law)

Claim for compensation for losses (default interest, penalty, interest, other damages)

Judicial debt collection and enforcement through bailiffs

Disclosure of debt, which may affect the borrower’s ability to obtain loans in the future, loss of reputation

It is important to note that the specific consequence may depend on the amount of the debt, the terms of the agreement, applicable legal acts and other circumstances.