recievable

Receivable is a legally enforceable claim for the payment (monetary or non-monetary) towards the debtor held by a creditor. The claim must be repaid by the end of the maturity date specified in the contract. Otherwise, the debtor is in default and the creditor is entitled to enforce the claim by legal means. The issue of receivables is mainly defined in Act No. 89/2012 Coll., The Civil Code.

Usually, the recovery of receivables is dealt with by debit notes (collection letters) addressed to the debtor. Only if the debt is not paid on the basis of collection letters, the debt settlement is handed over to the court.

If the creditor fails to exercise his right to claim the receivable within a certain period of time, the receivable is time-barred and the creditor is no longer entitled to claim the receivable. However, this does not mean that the debtor has ceased to be liable to pay the debt.