Currently, Brazilian society is experiencing a significant increase in the rate of defaulters, that is, individuals who have not met their payment deadlines. Thus, many doubts and fake news have been created about the default process and what happens to a debt after 5 years. Therefore, check out the explanation and truth behind the default process.
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Many questions circulate about the default process, so get rid of them all now:
Bad debt on the rise
According to the recent report issued by Serasa Experian, more than 70 million Brazilians are in default.
That is, about 32% of the Brazilian population was unable to pay off their debts. This is a scenario of great concern, both for debtors and creditors.
However, most of the defaulters feel calm, based on the false belief embedded in the popular imagination that a debt ceases to exist after 5 years.
This belief is mistaken, although a debt can lapse, this does not eliminate the individual's responsibility to fulfill the debt. Just as it prevents creditors from charging and this process should not necessarily occur after 5 years.
The lapse is not so good
The expiration of a debt, in reality, is the end of the period in which the creditor has to collect the debt in court. Therefore, when the debt expires, it passes the validity period, formal means such as SPC and Serasa can no longer be used for collection.
However, this does not prevent collection from taking place by other means, either informally or by protesting the debt at a notary's office.
Therefore, waiting for debt to expire is a bad policy. Because it will not prevent charges, and although your name is no longer "dirty" it will still be difficult to get new credits.
In addition to that the amount of debt will continue to increase, fueled by interest. Therefore, it is strongly recommended to avoid default situations.
However, for those already in debt, the recommendation is to negotiate the debt, to review its amount, interest rate or even a new payment term.