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Debt and Money Advice, Non-Priority Debts· 4 min read

Statute Barred Debt

If a creditor is chasing you for an old debt, it may be "statute barred," meaning they can no longer take you to court to force you to pay. In England and Wales, most unsecured debts become unenforceable after six years under the Limitation Act 1980 if you have not made a payment or acknowledged the debt in writing during that time.

When an old debt becomes unenforceable

If you are being contacted about a debt from years ago, it can be worrying. You might not even remember the debt, or you may have thought it was dealt with long ago. In many cases, old debts can become what is called "statute barred", which means the creditor can no longer take you to court to make you pay.

This applies in England and Wales under the Limitation Act 1980. The debt does not disappear, but the creditor loses the legal right to enforce it through the courts.

How long before a debt becomes statute barred?

The time limit depends on the type of debt:

  • Unsecured debts (6 years): This covers credit cards, personal loans, overdrafts, utility bills, and council tax.
  • Mortgage shortfalls (12 years for the capital sum, 6 years for interest): If your home was repossessed and sold for less than you owed, the leftover amount has a longer limitation period for the capital, but only 6 years for interest.
  • Tax debts (no time limit): HMRC can pursue income tax, VAT, and capital gains tax indefinitely. These debts do not become statute barred.
  • County Court Judgments (CCJs): If a creditor already has a CCJ against you, the normal 6-year limitation period no longer applies. However, if the CCJ is more than 6 years old, the creditor will need permission from the court before they can enforce it.

When the clock starts

The six-year period (or twelve years for mortgage capital) begins from the "cause of action". This is usually either:

  • The date the debt first became payable (for example, when you missed a payment and the lender demanded the full amount), or
  • The date of your last payment or written acknowledgement of the debt, whichever is later.

What can restart the clock

This is important to understand. The limitation period resets back to zero if you:

  • Make any payment towards the debt, even a small one
  • Acknowledge the debt in writing, for example by email, letter, or signing a document that confirms you owe the money

That means a debt that was close to becoming statute barred can have the full six years added again if you make a payment or put something in writing.

What to do if a creditor contacts you about an old debt

If you get a letter, phone call, or visit from a creditor or debt collector about a debt that may be over six years old:

  • Check your records. Look at when you last made a payment or acknowledged the debt in writing. If it has been more than six years with no payment and no written acknowledgement, the debt may be statute barred.
  • Do not make a payment or admit you owe the money. Even a small payment or a written reply saying "I know I owe this" can restart the clock. Be careful with what you say and sign.
  • Write to the creditor. If you believe the debt is statute barred, you can write to them stating that the debt is unenforceable under the Limitation Act 1980 and that you will not be making any payments.
  • Get advice before you respond. If you are not sure whether the debt is statute barred, talk to us before you reply to the creditor. Getting it wrong could restart the limitation period.

Get help

Being chased for an old debt can be stressful, especially if you are not sure where you stand. We can help you check whether a debt is statute barred and advise you on what to do next.

All our advice is free and confidential.

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