What is a Payment Default?
A payment default is a violation of the debtor’s monetary obligation (failure to perform or improper performance of the obligation, including delays in execution) which satisfies the following conditions:
A payment default is a violation of the debtor’s monetary obligation (failure to perform or improper performance of the obligation, including delays in execution) which satisfies the following conditions:
- The infringement has lasted more than forty-five (45) days after the date of the financial obligation, i.e. the day following the payment date;
- The amount shall be at least thirty (30) Euros, which may include both a main claim and/or collateral claim for the financial undertaking;
- The arrears underlying the payment default must be true, verified and executable.
After the publication of a payment default in the register, the amount of the payment default may fall below 30 euros.
The information disclosed to third parties about payment defaults includes the number of disputed payment defaults and the start and end dates of valid and ended payment defaults, the amount and origin of the default (the person entering the default and its field of activity).
The data about defaults is updated (increased or decreased) according to the debt balance at least once a week, if necessary.
The info about defaults shall be ended upon ending of the breach of the obligation underlying the debt, including full payment of the debt. The end date of the default is the end date of the default, eg the date of payment of the debt.
Ended payment defaults are published in the register for 7 years in the case of companies and up to 5 years in the case of individuals.
It is important to know that if an agreement is entered into with the debtor to pay the default, or the payment is made after the default is published, the default will not be cleared in agreement with the debtor. Cancellation of the publication of a payment default is possible if the debt information has not been published yet
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