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Collected the debt from the heirs, overcoming the "benevolence barrier"

The loan that our client made to his debtor was secured by a pledge of the latter's apartment. One year after receiving the funds, the borrower died. Later on, representing the interests of the lender-legal entity, we filed a lawsuit against the heirs to collect the debt.

In the process, we encountered the fact that our client's prior management had unreasonably taken a lien off the apartment, even though the loan had not been repaid.

The trial court denied recovery from the heirs, stating that the removal of the pledge was evidence of repayment of the principal debt. In addition, the court considered the statute of limitations to be from the date of death of the principal debtor, not from the date of performance of the obligation.

However, in the higher courts we were able to prove that, firstly, the removal of the pledge does not mean the fulfillment or absence of the main obligation, and secondly, the period of limitation begins to run from the moment in which the loan agreement defines the term for its return.

In a new trial, our client's claims were granted.