Limitation

Limitation of a debt means that the party entitled to receive payment, the creditor, loses the right to have the debt paid off. A debt can be subject to limitation after a certain period of time if you have not acknowledged it or if the creditor has not interrupted the period of limitation, also known as "tolling the statute of limitations". For certain debts, e.g., child maintenance and taxes, special rules on limitation apply.

If the creditor has applied for execution and you believe that the debt is subject to limitation, you may register your objection with the Enforcement Authority, which will examine your objection and decide whether or not recovery can be performed.
 
If you receive an injunction to pay a debt which you believe to be subject to limitation, you may contest the claim. To do so, you must write a letter to the Enforcement Authority within the period specified in the injunction; the decision period. If the applicant wishes to take the matter further, it is handed over to the courts for examination.
 

Limitation period

Most debts to the state are subject to limitation after five years. The Swedish Tax Agency can apply for an extension of the limitation period.

For consumer debts, the limitation period is three years. Examples of this are arrears of rent for accommodation, private telephone bills and mail order debt. There are certain debts which may appear to be consumer debts but which are not considered as such, e.g., demands from the Swedish Motor Insurers for motor insurance charges in accordance with the Motor Traffic Damage Act.
 
Other individual claims such as debts to individuals or claims based on recurring promissory notes, e.g., bank loans, have a limitation period of ten years.
 

Tolling the statute of limitations

To toll the statute of limitations means that the limitation period is extended. If this occurs, a new limitation period begins, which means that the creditor extends the time available to them for requesting payment.

Tolling the statute of limitations can be achieved in many different ways, e.g.,

• paying interest or amortization, promising to pay or request an instalment schedule, i.e., acknowledging the debt
• receiving a written demand or a reminder of the debt from the creditor
• the creditor validates the claim via the courts or applies to the Enforcement Authority for execution.

The Enforcement Authority does not make an assessment of whether a debt is subject to limitation or not when an application for execution or an injunction to pay is received.