Time-barred debts

A public-law debt becomes definitely time-barred after five full calendar years have elapsed following the due date. For example, if the invoice due date was 31 May 2017, the debt will become definitely time-barred on 1 January 2023.

A private-law debt may become time-barred in two ways: either according to the general or the final limitation period. You can download an accessible pdf of the graphic here

The general limitation period

The general limitation period is determined by the activities of the creditor and the debtor during the debt collection process. The general limitation period for a debt on which a court judgment has been issued is five years. The general limitation period for a debt on which no court judgment has been issued is three years. The general limitation period is interrupted by the following, for example:

• the creditor sends a reminder letter or a debt balance statement
• debt enforcement is initiated by the creditor
• the debtor acknowledges the existence of the debt by repaying some of it or by agreeing on a payment arrangement, for example.

If the general limitation period is interrupted in one of the aforementioned ways, it will start over from the beginning. A debt may become time-barred on the basis of the general limitation period before the final limitation period expires.

The final limitation period

The final limitation period is calculated from the date of issue of a court judgment on the debt or from the original due date of the debt. A debt becomes time-barred on one of the following dates, depending on which one is reached first:

• A debt on which a court judgment has been issued will become definitely time-barred in 15 years from the date of judgment. However, if the creditor is a private person or if the debt is due to an offence, the limitation period is 20 years.
• A debt on which no court judgment has been issued will become definitely time-barred in 20 years from the original due date. However, if the creditor is a private person, the limitation period is 25 years.

It is provided by law that the final limitation period cannot be interrupted.

The debtor is responsible for keeping track of when the debt becomes time-barred

If you suspect that your debt has become time-barred, first examine the debt documents (for example invoices, debt collection letters, information contained in the e-services of debt collection agencies, and printouts provided by the enforcement authorities). You can consult the diagram above to estimate whether the general or final limitation period of your debt has been met.

If your debt is or has been subject to enforcement, the final limitation period of a private-law debt may be checked from the list entitled ‘Debtor’s enforcement matters’. You can retrieve the list from the e-services of the National Enforcement Authority Finland. For information on the final limitation period of the debt, see point ‘Grounds for enforcement’ on the list.

If some of your property has been distrained before limitation of the debt, the distraint will remain effective. The enforcement authorities may – even after the debt has become time-barred – sell the property to pay off some of the debt due to which the distraint was carried out.

Where necessary, it is the creditor’s duty to prove how and when the general limitation period for the debt was interrupted or that the final limitation period has not yet been met.

To find out more about time-barred debts, you can consult the financial and debt counselling services. Contact information of financial and debt counselling.‍

More information

Expiration of debt (Finnish Competition and Consumer Authority)