Statute-Barred Debt: The 6-Year Rule Explained

What makes a debt statute-barred?

Under the Limitation Act 1980, a creditor usually has 6 years to start court action for an unsecured debt. If that time passes without a payment, a written acknowledgement or a court claim, the debt becomes statute-barred. All three of these need to be true:

• At least 6 years have passed since the creditor's "cause of action" — usually when you defaulted and the creditor became entitled to demand the debt
• You (or someone acting for you) haven't made any payment towards it in those 6 years
• You haven't acknowledged in writing that you owe it in those 6 years, and the creditor hasn't obtained a County Court Judgment

The debt doesn't disappear. The creditor can still write to you and ask you to pay voluntarily, but it can't successfully take you to court if you raise the time limit as a defence.

How do I work out when a debt became statute-barred?

Find the later of two dates: when the creditor could first take court action (often the default), and the date of your last payment or written acknowledgement. Add 6 years. If nothing has happened since and no court claim was started, the debt is likely to be statute-barred after that date.

The exact start date can be technical (for example, it can depend on when a default notice expired or when an overdraft was demanded). To find your dates:

• check your own bank statements and old paperwork for your last payment
• check your credit file — but note that defaults drop off after 6 years, so a missing record doesn't prove anything
• ask the creditor for a statement of account showing payments — asking for information doesn't count as acknowledging the debt, as long as you don't admit owing it

Payments made through a debt management plan or by someone on your behalf count as payments. If in doubt, ask National Debtline (0808 808 4000) to check the dates for you.

Which debts can become statute-barred?

Most consumer debts can: credit and store cards, personal loans, overdrafts, catalogue accounts, payday loans, BNPL and utility arrears all have a 6-year limit. Some debts follow different rules:

What should I do if I'm contacted about an old debt?

Don't pay anything or sign anything until you've checked the dates. If the debt looks statute-barred, write to the creditor saying so and asking them to stop contacting you. Old debts are often sold to debt purchasers, so the name on the letter may be one you don't recognise.

1. Check it's your debt

   Ask the firm for details of the original creditor, account number and a statement — without admitting you owe it.

2. Work out the dates

   Use the method above. If you're unsure, speak to a free adviser before replying.

3. Send a statute-barred letter

   Use the template below. Keep a copy and proof of postage or sending.

4. Complain if the pressure continues

   FCA rules say debt collectors must not threaten court action on a statute-barred debt or mislead you about it. If they do, complain to the firm and then the Financial Ombudsman Service.

What should I avoid doing with a possibly statute-barred debt?

Until you're sure of the dates, don't make any payment and don't admit the debt in writing. If the 6 years haven't actually run out yet, a payment or written acknowledgement restarts the clock and gives the creditor another 6 years.

• Don't make a "token" or "goodwill" payment — even £1 counts.
• Don't sign forms such as income and expenditure statements that say you owe the debt.
• Don't agree to a payment plan over the phone before getting advice.
• Don't ignore court papers — the time limit isn't applied automatically (see below).

In England and Wales, once a debt is already statute-barred, a later payment or acknowledgement doesn't legally restart the 6-year period. But creditors may argue about the dates, and a payment can make things more complicated — so get advice before doing anything.

What if I get court papers for a statute-barred debt?

Respond to the claim form within 14 days of service and say in your defence that the claim is statute-barred under the Limitation Act 1980. The court won't apply the time limit for you. If you don't respond, the creditor can get a default judgment (a CCJ) even though the debt was statute-barred.

If a CCJ has already been made against you for a statute-barred debt because you didn't receive the papers, you may be able to apply to have it set aside — act quickly. Read our guide to County Court Judgments and get free advice from National Debtline or Citizens Advice.

Do CCJs become statute-barred?

No. If a creditor got a County Court Judgment before the 6 years ran out, the debt is not statute-barred, and the judgment doesn't simply expire. However, a creditor normally needs the court's permission to enforce a judgment that is more than 6 years old by some methods, and can generally only recover up to 6 years of interest on a judgment.

If you're contacted about an old CCJ, get advice about what the creditor can still do. See our guides to CCJs, bailiffs and attachment of earnings.

How is Scotland different?

In Scotland, most consumer debts "prescribe" after 5 years. Unlike England and Wales, a prescribed debt is wiped out completely — you no longer owe it at all. The 5-year period restarts if you make a payment or acknowledge the debt before it ends. Get advice from a Scottish debt adviser if you live in Scotland or the debt is from when you lived there.

Template statute-barred debt letter

Only send this once you're confident the debt is statute-barred. Replace everything in [square brackets]. Don't add anything that admits you owe the money.

National Debtline also has a free statute-barred sample letter and fact sheet on its website.

Frequently Asked Questions