“Prescription” and “Forfeiture”: The Legal Way You Might Not Owe Anything Anymore
Did you know there’s a legal way to “not pay” — even if the government or a company says you still owe them money?
It’s not a scam, it’s not a loophole, and it’s not about hiding anything. It’s a principle deeply rooted in law: it’s called prescription (also known as “statute of limitations”) and forfeiture (also called “expiration of rights” or “decadence” in civil law systems).
Most people panic when they receive a letter from the tax office or a debt collector — even if it’s been 10 years since the original issue. They assume that because an authority is asking, they must pay. But law doesn’t work that way.
Here’s the truth: if a certain amount of time passes without any valid legal action being taken, the creditor — whether it’s a private company, a tax agency, or a public body — loses the right to demand payment. And you, the debtor, may have the full legal right to refuse.
1. What “Prescription” Really Means
Prescription is a legal mechanism that extinguishes a right after a specific period of time, if that right has not been exercised. In simple terms:
“Use it or lose it.”
Every type of legal claim — taxes, utility bills, bank loans, employment disputes — has a time limit within which it must be pursued. If the deadline passes and no official action (like a lawsuit, notice, or enforcement) was taken, the law wipes out the enforceability of that right.
Example:
You received a tax assessment in 2015 but never got any official notification afterward. Then, in 2025, the tax agency suddenly asks for payment. If the legal deadline (often 5 or 10 years, depending on the type of tax and jurisdiction) has passed with no valid interruption, you can legally refuse to pay — even if the original amount was real.
2. Forfeiture (Decadence): A Slightly Different Mechanism
While “prescription” extinguishes a right due to inaction, forfeiture occurs when a right is inherently bound to a specific time window. After that deadline, the right ceases to exist — no matter what.
This is common with administrative or tax actions. For example, the tax authority may have a maximum of 5 years to issue a notice. If they send it in year 6, the entire claim is void — not because you didn’t pay, but because their right to collect no longer exists in law.
📌 Key Difference:
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Prescription: the right still exists in theory, but you can raise a legal objection to refuse payment.
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Forfeiture: the right disappears entirely — the creditor can’t do anything, even if you don’t object.
3. “But I Never Received Anything…” — Why That Matters
One of the most common scenarios is this:
A person receives their first-ever letter from the tax office after 8, 10, or even 15 years. They panic and pay, thinking they’re in trouble. But if no prior notification was legally delivered during the limitation period, that letter might be meaningless.
Authorities are required by law to interrupt the prescription period with an official notification. If they fail to do so — or if they sent something improperly (e.g., to the wrong address or without proof of delivery) — the clock never stopped ticking.
📍 Tip: Always ask for:
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Proof of previous notifications
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The exact date of the original claim
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The legal time limit for that type of debt
You’d be surprised how often the entire claim is invalid simply because the deadline expired quietly.
4. Why These Rules Exist
The law is not designed to punish people forever. Prescription and forfeiture exist for two main reasons:
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Legal Certainty: People should not live their whole lives under the threat of old, forgotten debts.
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Administrative Responsibility: Creditors — including tax authorities — must act within reasonable timeframes. If they fail to do so, they lose their rights.
It’s part of the balance between citizens and the state — and between businesses and consumers.
Real-World Case:
A company claimed €80,000 from a client for unpaid invoices from 2012. They sued in 2024. The court dismissed the case because the 10-year prescription period for commercial claims had expired. The debt was real, but unenforceable.
Key Takeaway:
If someone demands payment years later, don’t panic and pay immediately. First, verify if the claim is still legally valid. If the time limits have passed without proper action, the law might be on your side — and you may owe nothing at all.
