Many people, while studying in private colleges, end up contracting debts that they are not able to pay. The names end up being denied in the various credit protection agencies and some doubts remain: does the debt prescribe in how long? Can it pawn goods? What happens to school debt?
To clarify any doubts, we have gathered the complete information on the subject.
School Debt Prescribes How Long?
Like any financial debt in Brazil, the debt “expires” in 5 years. This does not mean that debt ceases to exist, however. This prescription is for the inscription of the name of the person in the organs of protection to the credit and for any legal attempt of collection of the debt.
In other words, the institution loses the right to legally collect debt, and must remove from the credit protection body the name of the person, “clearing” the individual’s name. However, the debt with the institution will still persist, and any limitation directly with the institution will persist.
College Debt Can Mess With Name?
Yes you can. What can not is the name of the person remain unclean after 5 years from the contraction of debt. It is worth remembering that this deadline is also the deadline for the institution to go to court to try to receive payment of the amounts owed by the student.
The dirty name expires in 5 years. Debt with the college, however, if she went to court, will not expire until the process is over.
Can College Debt Be Charged In Court?
You can. What usually happens is that many institutions gave up claiming their debts judicially and people thought they could not be charged. However, this practice has changed, and many educational institutions are seeking in justice the payments to which they are entitled.
College Debt Can Pawn Goods?
The college debt that was collected judicially and had cause win for the educational institution may result in the attachment of assets. Before the whole process runs in court, however, no person’s property can be seized. And who will decide on the attachment of the assets is the judge from a request of the lawyer of the educational institution …
When the college files an action for the collection of monthly payments within 5 years of the beginning of the debt, it can take this charge for years until recovering the money, including requesting the attachment of assets by the court. For this to happen, the indebted person will need to receive a subpoena and attend hearings with a defense attorney.
Was there any doubt about the debts contracted with colleges? Leave your questions in the comments and we will respond as soon as possible!