Old debts sometimes resurface years later, often from a debt collector you’ve never heard of. In some cases, the creditor has run out of time to take you to court. This is known as a statute-barred debt.
The short answer
- Most unsecured debts become statute-barred after six years in England and Wales.
- The clock runs from your last payment or written acknowledgement of the debt.
- If a creditor got a CCJ within the time limit, the rule doesn’t stop enforcement.
- In Scotland, most debts are written off after five years (prescription).
- Some debts, such as HMRC and benefit overpayments, have different rules.
How does the six-year rule work?
Under the Limitation Act 1980, a creditor usually has six years to start court action for an unsecured debt. The six years normally start from the last time you paid anything or admitted the debt in writing. If no payment or acknowledgement happened in that time, the creditor can’t successfully sue you.
Does the debt disappear?
In England and Wales, the debt still technically exists, and creditors can ask you to pay. But they can’t enforce it through the courts, and they shouldn’t pressure you or mislead you about your rights.
What should I do if I think a debt is statute-barred?
Don’t make a payment or admit the debt in writing until you’ve checked, as this could restart the clock in some cases. National Debtline has template letters to tell the creditor the debt is statute-barred.
What about council tax?
Council tax has its own rules. See council tax debt after 6 years.
Common questions
Does a statute-barred debt stay on my credit file?
Defaults usually drop off after six years from the default date, which is often before a debt becomes statute-barred.
Can a debt collector chase a statute-barred debt?
They can ask for payment, but they can’t take court action and must not mislead you about that.
Does the six-year rule apply to mortgage shortfalls?
Different limits apply. Interest on a mortgage shortfall is usually limited to six years, but the capital can be chased for twelve years.
Getting help
You don’t have to deal with debt on your own. Free, impartial advice is available from MoneyHelper, StepChange and National Debtline. If you want to talk through whether a formal solution such as an IVA could be suitable, you can also get in touch with us.