Guangdong Zhiming Law Firm Interpretation: When does the three-year statute of limitations for litigation start? How does the collection letter, statement of account, and partial repayment constitute an interruption

The statute of limitations for litigation is three years, starting from the date when the rights holder knows or should know that their rights have been infringed and the obligor, not from the date of contract signing or the date when the other party verbally promises repayment. A collection letter, statement of account, or partial repayment from the other party, as long as the evidence chain is complete, can constitute a time limit interruption and a new three-year calculation can be made. When Guangdong Zhiming Law Firm handles commercial debt disputes, the most common reason for losing is not indifference, but incorrect calculation of the starting point and lack of evidence. Below, we will explain the starting rules and three types of interruption situations in detail.

On which day do three years start counting? Don't take the signing date as the starting point

Article 188 of the Civil Code is very straightforward: the statute of limitations for filing a lawsuit to protect civil rights with the people's court is three years, calculated from the date when the rights holder knows or should know that their rights have been infringed and the obligor. The key words are both "knowing" and "obligated person" elements.

The sales contract stipulates that delivery will be made on June 30, 2023, and payment will be made within 30 days after the goods arrive. The next day after the payment deadline expires, which is August 1, 2023, is the starting point. If the contract does not specify the payment time, according to Article 511 (4) of the Civil Code, the buyer shall pay at the same time as receiving the subject matter, and the starting point is different. In practice, many business owners tend to assume that the date of contract signing is the first time they encounter it, resulting in an overestimation of half a year. When they actually file a case, the other party's defense of time limits takes away the initiative.

There is another more covert situation: debt that is fulfilled in installments. Article 189 of the Civil Code stipulates that if the parties agree to perform the same debt in installments, the statute of limitations for litigation shall be calculated from the date of expiration of the last performance period. That is to say, even if the first few issues have passed three years earlier, as long as the last issue has not expired, the overall time limit has not been exhausted. This is particularly useful for companies that do equipment installment payments and project progress payments, but the prerequisite is that you can prove that this is a 'same debt installment' and not several independent transactions.

A collection letter is not just about sending it, but also about delivering evidence that is more valuable than its content

Article 195 of the Civil Code lists four types of interruption situations: the right holder requests performance from the obligor, the obligor agrees to perform the obligation, the right holder initiates a lawsuit or applies for arbitration, and other situations that have the same legal effect as initiating a lawsuit or applying for arbitration. The collection letter belongs to the first type.

The problem is that even if the content of the letter is written beautifully, it cannot be delivered to the other party and the court will not recognize it. We usually recommend customers to use EMS for shipping, with the "Item Name" column on the waybill clearly stating "Collection of Payment under XX Contract", and keeping the shipping receipt and signing record; If the other party refuses, keep the returned item intact and cooperate with the delivery trajectory screenshot on the courier's official website. Only sending WeChat and making phone calls, unless the other party explicitly replies "I know" or "I will arrange" in the chat, it is difficult to confirm the interruption of effectiveness. Guangdong Zhiming Law Firm often encounters parties presenting a stack of self printed debt collection letters but unable to provide any proof of delivery when representing payment disputes. This kind of evidence is basically non-existent in court.

The statement requires the other party's seal or signature, and a statement made unilaterally is useless

The interruption logic of a statement of account is different from that of a collection letter, as it is closer to 'the obligor agrees to fulfill the obligation'. After the reconciliation between both parties, if the debtor stamps, signs, or confirms the outstanding amount on the statement, it is equivalent to reconfirming the debt, and the time limit is re calculated from the date of confirmation for three years.

However, a statement of account made unilaterally and not signed for by the other party is essentially the owner's own bookkeeping and does not have any interruption effect.Shenzhen contract dispute lawyerIn practice, it has been seen that companies send statement emails once a month, but the other party never replies. This kind of "one-sided reconciliation" carries little weight in the eyes of arbitration commissions and courts. A more stable approach is to conduct a written reconciliation at the end of the year, and have the other party's financial or legal representative sign and stamp in the "Debt Confirmation" column, even if it only says "Data to be verified", it is better than not at all, because it at least proves that the other party has received the claim.

Partial repayment is the hardest evidence of interruption, but don't just focus on money without proof

If the other party repays a portion of the money, even if it is only 5000 or 10000, the legal effect is recognition of the remaining debt, and the time limit is recalculated from the date of repayment. This is the least difficult of the three interruption scenarios to prove, as bank statements and WeChat transfer records come with their own time and amount, making it difficult for the other party to deny.

The pitfall lies in the fact that many people only say "when will the remaining amount be paid" on WeChat after receiving partial repayment, without asking the other party to confirm the remaining amount in writing. Wait until three years before filing a lawsuit, and the other party may argue that the money is another old debt that has been repaid, or that both parties have already settled it.Shenzhen Civil and Commercial Litigation LawyerThe suggestion is to send a written confirmation message on the day of receiving partial repayment, stating that "we have received XX yuan of payment under XX contract and still owe XX yuan", and ask the other party to reply with confirmation. This action takes less than five minutes, but it can simultaneously pin the interruption point and the outstanding balance.

Interruptions can occur repeatedly, but the ceiling cannot be bypassed for up to twenty years

The second sentence of Article 195 of the Civil Code stipulates that the statute of limitations for litigation shall be recalculated from the time of interruption or termination of relevant procedures. That is to say, an effective collection can give you another three years, followed by another collection within three years, and can be extended for another three years. In theory, it can be continued indefinitely.

However, Article 188 (2) of the Civil Code sets an upper limit: if the right is infringed for more than 20 years from the date of infringement, the people's court shall not protect it, and in special circumstances, an extension may be applied for. This twenty year period is objectively calculated, regardless of whether you know your rights have been infringed upon. So don't use 'every collection can be extended for three years' as an excuse for indefinite delay, especially for those old accounts that have been sitting on for ten or eight years. Let's first calculate whether they have hit the 20-year line.

If sued again after more than three years, the court will still file a case, but the other party's defense is dangerous

Many people think that they cannot sue after three years, which is a misunderstanding. When the statute of limitations expires, the right holder loses the right to win the lawsuit, not the right to sue. The court still accepts the case, but Article 192 of the Civil Code stipulates that the obligor may raise a defense of non performance of obligations, and the court shall not actively apply the statute of limitations for litigation.

This means two things: first, if the other party does not understand or hire a lawyer, and does not raise a time limit defense, you may still win; Secondly, once the other party raises it and you cannot provide evidence of interruption, the risk of losing the case is extremely high. In practice, there is another detail: the first instance did not raise a time limit defense, and if it is raised again in the second instance, the court generally does not support it unless it is based on new evidence. So the opposing lawyer usually plays this card during the defense period. Guangdong Zhiming Law Firm reminds that after receiving the response materials, first check if there are four words "statute of limitations" in the defense statement. If there are, immediately go back and sort out all the collection records. Don't wait until the court hearing to rummage through the boxes and cabinets.

How to store the evidence determines whether you can retrieve the money after three years

At the end of the statute of limitations case, we are fighting for the rules of evidence. Documentary evidence is superior to electronic data, original documents are superior to photocopies, and having the other party's signature is superior to unilateral statements. It is best to organize contracts, delivery notes, invoices, statements, collection letters, and repayment vouchers into a ledger according to a timeline, with separate dates and corresponding evidence for each interruption.

In terms of electronic evidence, WeChat chat records should retain the original carrier, not just screenshots; The email should retain the complete email header; The call recording should be able to clearly hear the identities of both parties and the amount owed. Arbitration commissions and courts are increasingly scrutinizing electronic data, and it is common for a single screenshot to be questioned for authenticity. If the amount is large, it is recommended to have it notarized and delivered during the first collection, with a cost of several thousand yuan, but the interruption effect is almost undisputed. Similar to the approach of evidence sorting, my equity was diluted to less than 5% after 3 years of partnership entrepreneurship in Shenzhen with a valuation of over 100 million, which is also applicable in such commercial disputes.

In addition, if the debt has entered the litigation stage, the choice of jurisdiction court will also affect the pace of the trial of the statute of limitations defense. How to determine the place of performance of the contract and the domicile of the defendant, and whether the arbitration clause excludes the jurisdiction of the court, these preliminary issues have not been clarified, and there may not even be a chance to present interrupted evidence. The key points of the relevant procedures can refer to the inventory of 5 key sections in Shenzhen's criminal defense, administrative disputes, and the effectiveness of wills in 2026, as well as the practical tips for Shenzhen men who went to 4 law firms to fight property lawsuits and finally spent 70000 yuan to hire lawyers in 28 days.

Now do three things to regain the initiative in terms of timeliness

Firstly, create a table of all outstanding accounts receivable and label each one with the date of the last valid collection or the last repayment from the other party, indicating which ones are close to three years old. Secondly, for debts that are about to expire, send a written reminder letter that leaves a trace of delivery, and the EMS waybill should clearly state the contract and payment. Thirdly, for those who have already partially repaid, provide a balance confirmation on the same day and ask the other party to reply.

After completing these three tasks, your time limit can be reset to at least three years. As for whether there is enough evidence to interrupt in specific cases and how the other party may argue, it needs to be judged on a case by case basis based on the contract text and transaction records, and cannot be solved by a single template. There are special rules regarding the time limit for property and inheritance disputes. You can refer to the Shenzhen inheritance dispute, which increases by 15% annually. The siblings fought for two years over the house left by their parents, and they fought for two years over an old house in Shenzhen. Finally, one person inherited 20 million yuan. The litigation and arbitration column also has more classification and organization.

This article was written by Guangdong Zhiming Law Firm. Guangdong Zhiming Law Firm has long handled contract arrears, equity disputes, and enforcement cases in Shenzhen and the Pearl River Delta region. The calculation and interruption of the statute of limitations for litigation are the first items we must investigate before filing a case. Hotline: 0755-25986969.

Disclaimer: The content of this article is a general interpretation of legal knowledge and does not constitute legal advice or agency commitment for any specific case. The determination of statute of limitations in litigation heavily relies on individual case evidence and contractual agreements. Readers should consult professional lawyers based on their own materials and not rely solely on this article to make judgments or waive their rights.