DON’T DELAY—YOUR CLAIM MAY EXPIRE

In the business world, invoicing is a daily routine. However, if your business partner or customer fails to pay the invoice within the agreed deadline, it is essential to take the appropriate steps to recover your claim — such as sending a reminder or, if necessary, a pre-litigation notice. If these efforts remain unsuccessful, you may proceed with filing a lawsuit. 

To successfully enforce your claim, you must keep in mind the statutory limitation period, which, according to the Civil Code, is 3 years from the date the claim could have first been asserted. 

When exactly does this period begin? 

Until recently, established case law of the Czech Supreme Court held that the limitation period started the day after the invoice’s due date. However, according to a ruling issued in 2023, this is no longer the case. If a contract specifies that the invoice will only be issued in the future with an agreed payment deadline, the limitation period begins on the day the creditor first had the right to demand payment — that is, the day the creditor could have issued the invoice. This is typically the day the agreed service was completed or the goods delivered. 

In some cases, this means the limitation period may start running even before the debt becomes due. Therefore, its necessary to carefully check whether your receivables have become time-barred, so that any potential court enforcement is successful and the debtor does not raise a limitation defense.

If you have any unpaid invoices and want to make sure you do not miss the deadline for debt recovery, do not hesitate to contact us. We are happy to assist you with collecting your claims.

#limitation period #recovery of claims