WE ASSIST CONSUMERS TO ELIMINATE THEIR CREDIT CARD DEBT
At Panama Legal center, our attorneys are expert in banking & finance issues and assist clients to get rid of their credit card and personal debts. The statute of limitations for bank debts in Panama is a little-known right that can help legally eliminate consumers’s credit card debt. For example, if a bank does not act to litigate the debt of their clients within certain timeframe, the debtor can be released from the entire debt. This legal statue is based on commercial laws to provide financial protection to consumers.
What is the Statute of Limitations for Bank Debts in Panama?
The statute of limitations is a legal mechanism that establishes a time limit for banks to legally claim their debt. That means, if the consumer does not pay his credit card debt to the bank, the bank must initiate a legal action in the court to collect from the consumer within certain period of time. If the 3 years timehas passed and no legal process has been filed by the bank nor has there been an acknowledgment of the debt by the debtor, then the debt can be eliminated by the consumer. Another words, if the bank does start a law suit against the consumer within certain period of time, the debt can no longer be legally collected.
According to Article 1652 of the Commercial Code, actions arising from banking and financial contracts are subject to a three (3) year statute of limitations. This includes personal loans, credit cards, overdrafts, and other banking products. Furthermore, Article 1649-A states that the statute of limitations can be interrupted if:
The bank files a lawsuit against the consumer.
The debtor acknowledges the debt in any form or shape in writing or verbally
The consumer pays part of their debt or sign a new document is signed by consumer replacing the old one.
EXAMPLE; If the consumer has not paid down his debt to the bank, and the bank has not initiated any legal action to pursue collection via court, then after three years, the debt can be eliminated by the court. In this case, consumer must take appropriate action and the court would null and void the consumer credit card debt.
What Happens if the Debt Has Aged?
In this case, the debtor is not obligated to pay the bank. Even if the bank tries to collect, consumers can legally defend themselves by pointing out that the statute of limitations has expired. This prevents garnishments, lawsuits, or unfair seizures of consumer’s assets.
Real-life Example of Debt Elimination:
Imagine if you have a credit card debt to a bank in Panama and have stopped paying your credit card since 2019, and furthermore the bank hasn’t filed a lawsuit nor have you acknowledged the debt. By 2022, more than three years have passed and without any legal interruptions, your debt has already aged and can be eliminated. Consult with our experienced attorneys and we guide you how to protect you without paying your debt.
What Can I do if I Have Credit card Debt?
It’s important to consult with our attorneys. Each case is different and unique and the specific law could apply to different senario. The Panama law also addresses situations that interrupt or restart the statute of limitations, which is why a professional analysis is required. Our trusted attorneys are here to help consumers to legally prevent the banks to collect their debt.
At Panama Legal Center, we assist you to:
✔ Check if your debt has already expired.
✔ Defend yourself against improper collection agencies.
✔ Protect your assets with reliable legal advice.
Remember that the statute of limitations for bank debts in Panama is a right that consumers can exercise, but few are aware of. If you are receiving emails, calls or threats regarding collection of an old debt, it’s time to act and consult with our trusted attorneys.
GET IN TOUCH WITH OUR ATTORNEYS TO ELIMINATE YOUR DEBT IN PANAMA
EMAIL: customer@panamalegalcenter.com
WHATSAPP: + (507) 6404-0388