# Time-barred loans in Georgia: limitation period and defence An old loan — from a bank, a microfinance company or a private person — becomes time-barred after a period set by law. But nothing disappears automatically: the debtor must raise the time bar, and even one 'small' payment restarts the clock. - Confidential - Georgian · English · Russian - Free first consultation - Courts of all instances Under Article 129 of the Civil Code, the limitation period for contractual claims — including loans — is 3 years, and 6 years for contracts concerning real estate. For periodic (e.g. monthly) payments it is 3 years, counted separately for each payment. The period starts when the creditor learned or should have learned of the breach — for a loan, usually from the missed payment date. Once the period has expired, the debtor may refuse to pay (Article 144). But the court does not check the time bar on its own — if you don't raise it when sued, the court may order you to pay even a time-barred debt. And if you pay after the period has expired, you cannot ask for the money back. ## What restarts the period - Acknowledging the debt — paying part of it or interest, a guarantee, a letter or signature acknowledging it (Article 137) - The creditor suing, applying to a state body, or taking an enforcement step (Article 138) - After an interruption the period starts again — time already passed no longer counts (Article 141) ## Court decisions and enforcement If the debt has already been confirmed by a court decision that has entered into force, the limitation period for the claim is 10 years — even if the loan's own period was 3 years (Article 142). There is a limit at the enforcement stage too: enforcement proceedings for a money claim end 10 years after they began — except in cases set by law, such as alimony (Law on Enforcement Proceedings, Article 34). ## If a collector calls you - Don't pay a 'token' amount or sign an acknowledgment of the debt until you have checked the period with a lawyer - Ask in writing: whose claim it is, on what basis it was transferred and when the last payment was made - Keep records of calls and messages ## Our services - Calculating the limitation period in your case - Raising the time bar in court - Defence when sued by a bank, microfinance company or collector - Challenging a decision made in your absence - Enforcement and debtors' register issues - Negotiating with the creditor ## Questions & answers ### How long until a loan is time-barred? The limitation period for a loan claim is 3 years, 6 years for contracts concerning real estate. If a court has already confirmed the debt — 10 years. ### Is a time-barred loan cancelled automatically? No. After the period expires the debtor may refuse to pay, but must raise it in court themselves. The court does not apply the time bar on its own initiative. ### A collector asked me to pay a small amount — what should I do? Check the period before you pay. Paying part of the debt or interest, or acknowledging it, restarts the limitation period. ### Does a time-barred loan stay in my credit history? According to the National Bank's financial education portal, a time-barred debt stays in the credit history for 5 years, after which you can ask for it to be removed. ## Legal basis - [Civil Code of Georgia](https://matsne.gov.ge/ka/document/view/31702) - [Civil Procedure Code of Georgia](https://matsne.gov.ge/ka/document/view/29962) - [Law on Enforcement Proceedings](https://matsne.gov.ge/ka/document/view/18442) Official texts (in Georgian) — Legislative Herald of Georgia, matsne.gov.ge. ## Related topics - [#Court cases](https://mmlaw.ge/en/civil-litigation-lawyer/) - [#Georgians abroad](https://mmlaw.ge/en/georgians-abroad/) - [#Your rights](https://mmlaw.ge/en/blog/what-to-do-if-detained/) - - [Removing a seizure on bank accounts and property](https://mmlaw.ge/en/removing-seizure-on-account/) - - [Who is a judge? 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