Lent money over 15 years ago and now it's "too late"? Limitation periods, acknowledgments and the 6-month rule

A friend borrowed money years ago, keeps stalling, and now says that after 15 years they no longer have to pay. In Taiwan, a loan claim expires after 15 years and each interest payment after 5; after that the debt does not vanish, the debtor can simply refuse to pay. A message saying "I'll pay" or even a small repayment counts as acknowledgment and restarts the clock; a demand letter also interrupts it, but you must then sue within 6 months. For money you lend, keep the evidence and track the dates.

01Step 1: work out the dates

Loan principal: 15 years (Civil Code Article 125).
Interest: 5 years for each payment (Civil Code Article 126).
The clock starts on the agreed repayment date; with no agreed date, from when you could first demand repayment.

02Step 2: get an acknowledgment and the clock restarts

An acknowledgment by the debtor interrupts the limitation period (Civil Code Article 129), and a fresh 15 years runs from that day (Article 137).

Keep messages like "I'll pay you back" or "give me a bit more time".
Bank transfers of partial repayments count as acknowledgment too.

03Step 3: send a demand letter, then sue within 6 months

A registered demand letter (存證信函, sent by double-registered mail at the post office) asking for repayment interrupts the period (Civil Code Article 129).
Within 6 months of sending it you must sue or apply for a payment order, or the interruption is treated as never having happened (Civil Code Article 130).

Chunghwa Post: certified demand letters — Sending a 存證信函 at the post office

04Step 4: sue or apply for a payment order

NT$100,000 or less: small claims procedure, NT$1,000 court fee.
Or first apply for a payment order (支付命令), NT$500; if the debtor does not object within 20 days, it becomes final.

Judicial Yuan: sample pleadings, small claims, payment orders

05Already past the limitation period

Civil Code Article 144: once the period has run, the debtor may refuse to pay. The debt still exists: if they repay voluntarily you can accept it; but if they raise the limitation defence, the court will not order them to pay.

06Where to ask

The litigation counselling section at each district court.
Legal Aid Foundation, 412-8518.

07Things to watch

A demand letter buys you only 6 months; without a lawsuit or payment order in that time, the period counts as never interrupted.
Each interest payment has only 5 years, so long-unclaimed interest expires before the principal.
Keep the IOU, transfer records and messages; an oral loan alone is hard to prove.
Small claims covers claims of NT$100,000 or less; for larger amounts, ask the court's litigation counselling section which procedure to use.