Statute Barred Debt UK Explained

Determining whether a debt is statute-barred involves identifying when the last qualifying payment was made or when the debt was last acknowledged in writing. The six-year period runs from whichever of these events occurred most recently, not from when the debt was first incurred. It is important to note that a debt becoming statute-barred does not mean it disappears entirely — the creditor may still contact you about it, and the debt may still appear on a credit file for up to six years from the default date. People in this situation sometimes find it helpful to request a copy of their credit report and gather any records of payments or correspondence to establish the relevant dates.

Common situations include: being contacted about a very old debt and wondering whether it is still enforceable, receiving a county court claim for a debt that may be statute-barred, being unsure whether a payment made years ago restarted the limitation period, finding an old debt on a credit report and questioning its validity, or being pressured by a debt collector to make a token payment on an old debt.

The Limitation Act 1980 sets out the time limits for bringing legal claims. Section 5 provides a six-year limitation period for simple contract debts (most unsecured debts). Section 8 provides a twelve-year period for specialty debts (debts under deed, such as some mortgages). Section 29 is particularly important: it states that if the debtor makes any payment on account of the debt, or provides a written acknowledgement, the limitation period restarts from that date. Section 32 may extend the period where fraud, concealment, or mistake is involved.

People exploring whether a debt might be statute-barred often consider: gathering all available records to establish the date of the last payment or acknowledgement, checking their credit file for relevant dates, seeking free debt advice before responding to any contact about old debts, and being cautious about making any payment or written acknowledgement that could restart the limitation period. Some people also explore broader debt solutions if they have multiple debts.

Common mistakes include: making a small or token payment on an old debt which may restart the six-year limitation period under section 29 of the Limitation Act, writing to the creditor and inadvertently acknowledging the debt in terms that restart the clock, assuming a statute-barred debt has been written off or no longer exists, confusing the limitation period with the six-year credit file entry period, and not seeking advice before responding to a claim form for a potentially statute-barred debt.