Limitation of Debts in Denmark: When Does a Claim Expire?
An unpaid invoice in Denmark as a rule becomes time-barred after 3 years, and reminders do not stop the clock. The periods, when they start and what interrupts limitation.
info General information, not legal advice. Rules and rates can change, so always check the current rules and get advice on your specific case. Disclaimer
Short answer
An ordinary claim, such as an unpaid invoice, as a rule becomes time-barred 3 years after the due date. Claims under an IOU, a judgment, a court settlement or an endorsed payment order have a 10-year period. Reminders and collection letters do not interrupt limitation; the debtor's acknowledgment of the debt does, for example a paid instalment, as do legal steps such as a payment order or a writ.
What is limitation?
When a claim is time-barred, the creditor can no longer demand payment. The rules are in the Danish Limitation Act (forældelsesloven). The aim is that claims are pursued within a reasonable time, so the debtor does not have to reckon with old claims forever. For creditors, it means old invoices cannot be left to sit.
When does the period start?
The period runs from when the creditor could demand payment, and if a payment period was given, from the end of that period (section 2 of the Limitation Act). For an invoice with a payment deadline, that is typically the due date.
3 years or 10 years?
- 3 years (section 3): ordinary claims, such as unpaid invoices for goods and services.
- 10 years (section 5): claims under an IOU (gældsbrev), and claims established by a judgment, court settlement or endorsed payment order.
- Interest and fees falling due later become time-barred after 3 years (section 5(2)), even if the main claim has a 10-year period.
Loans, wages, damages and a number of other claims have special periods or special rules on when the period starts, and there are extensions, for example if the creditor did not know about the claim or the debtor. Get advice if your claim is not an ordinary invoice.
Reminders do not stop the clock
Many creditors believe a reminder or a debt collection notice keeps the claim alive. It does not. If you have claims approaching 3 years, you need an acknowledgment from the debtor or must take legal steps.
What interrupts limitation?
Limitation is interrupted when the debtor acknowledges the debt to the creditor (section 15), for example by paying an instalment, asking for more time or confirming the debt. A new period then starts. If the debtor acknowledges the debt in writing, stating both that it exists and its amount, a new 10-year period runs from the acknowledgment (section 5(1)(3) and section 19(2)).
Legal steps such as a writ, a payment order, a bankruptcy petition or an enforcement request also interrupt limitation if they are pursued within a reasonable time (section 16). A new period typically runs from the decision (section 19(3)). Read about court debt collection.
What about negotiations?
Negotiations do not interrupt limitation. If negotiations about the claim began before the period expired, however, limitation occurs no earlier than 1 year after the negotiations ended (section 21(5)). So do not let a negotiation drag on without an agreement or a legal step. Read about settlement and mediation.
Use an instalment plan to secure the claim
When the customer enters into an instalment plan and pays instalments, they acknowledge the debt, and limitation is interrupted. Getting the agreement in writing with the amount puts you in an even stronger position.
Frequently asked questions
Can a time-barred claim be sent to debt collection?
If the claim is time-barred, payment can no longer be demanded. If you are unsure whether the period has expired, get advice before taking further steps.
Does a debt collection notice interrupt limitation?
No. Reminders and debt collection notices do not interrupt limitation. The debtor's acknowledgment and legal steps do.
When does interest become time-barred?
Interest and fees falling due later become time-barred after 3 years (section 5(2)), even when the main claim has a 10-year period.
Getting started
Use our limitation calculator to estimate when your claim becomes time-barred, and review your oldest invoices now. Through InkassoHurtig you can get no-obligation quotes from police-authorised debt collection agencies and lawyers. This content is general information and not legal advice.