I have spent years working with debt collection, first in a bailiff's office and now as an attorney helping clients. Debts should be repaid. But should all debts? The answer is no.

The issue is also a hot topic at the national level. This summer, the Ministry of Justice and Digital Affairs circulated a proposal to amend the Code of Enforcement Procedure, under which debtors would be allowed to keep more of their wages in an effort to reduce envelope wages. In January, the Supreme Court clarified the rules governing the publication of time-barred debts. Estonians also lost €21 million to scammers in the first nine months of this year.

All three issues raise the same question: when does a debt stop being a debt that must be paid? The answer is more often than many people think. Here are three examples.

Time-barred claims in enforcement proceedings

I will begin with my favorite topic: enforcement proceedings. If enforcement of a claim has become time-barred, the debtor may refuse to pay it. The debt technically still exists, but a bailiff can no longer collect it through compulsory enforcement. The general rule is simple: enforcement of a claim arising from a court judgment becomes time-barred after 10 years.

There are 75,000 debtors in Estonia who are subject to more than 400,000 ongoing enforcement proceedings. A large share of proceedings initiated before 2016 involve collection of time-barred claims, and proceedings launched in 2016 are reaching the limitation period now. I am referring to private claims, such as apartment association debts and lender claims. Fines and tax debts expire under different rules and generally much sooner. Of course, there are exceptions, such as child support claims or proceedings that have been suspended for some reason, but the general rule remains the same.

Debtors must take the initiative and submit an application asserting that the claim is time-barred. Enforcement will not stop automatically. When withdrawals from the second pension pillar were made in 2021, an estimated €70 million went toward debt repayment. Many debtors unknowingly repaid claims that had long since become time-barred. Every day, employers transfer money from employees' wages to bailiffs to cover debts that could no longer legally be enforced.

For creditors, however, the message is that it is time to review enforcement proceedings involving their debtors and obtain an overview from bailiffs. The principle of "first come, first served" applies in enforcement proceedings, and it is unwise to wait and hope a debtor will eventually start paying voluntarily. There are more options than many people realize: enforcement proceedings can be initiated in another country, Revolut and Wise accounts can be seized, and debtors' movable property and inheritances can also be attached.

Time-barred debt collection claims

The second category consists of debts pursued by collection agencies that are, in fact, already time-barred. In many cases, the collection agency's only leverage is the threat of adding a person to a payment default register.

In a January 30, 2026 ruling, the Supreme Court stated very clearly that publishing information about a time-barred debt in a payment default register is permitted only in exceptional circumstances. A time-barred claim does not necessarily reflect a person's creditworthiness because a time-barred obligation may legally be left unpaid.

An even more important conclusion followed. If an individual challenges publication of the debt, the registry operator must demonstrate a compelling reason for publication that outweighs the debtor's interests, regardless of whether the debt is time-barred or not. The logic of "we will keep publishing it until you pay" no longer applies.

Therefore, before paying a collection agency, individuals should determine whether the claim is valid in the first place. If they are added to a payment default register, they should consider whether there is a sufficient legal basis for doing so.

Loans taken out by scammers

Every day, media outlets report cases where scammers have emptied the bank accounts of individuals and companies through fraudulent schemes. In more serious cases, scammers have also taken out loans in their victims' names. Several Estonian court rulings have found that lenders do not have the right to recover such loans from fraud victims.

People should therefore not feel embarrassed or rush to repay loans taken out by scammers. The recommended first step is to consult a legal adviser, who can assess the situation and suggest the best course of action. Legal proceedings are not always necessary.

That is why fraud victims should preserve all evidence rather than begin deleting it. Save all correspondence, call logs and other relevant material. Victims should also notify the police, their bank and the lender. After that, they should contact a legal adviser.

The law does not help passive parties

In summary, not every debt must be repaid. If a creditor has not been proactive in recovering the money owed, debtors have the right to use the options provided by law: seek recognition that a claim is time-barred, refuse payment of a time-barred claim and challenge an unjustified payment default listing.

The same principle applies in both directions. Creditors who fail to take active steps to recover debts cannot be surprised when claims become time-barred. Debtors who do not know their rights may end up paying debts they do not actually owe. The law does not help passive parties, whether creditor or debtor. Both sides must take active steps to achieve the best outcome for themselves.

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