Statute of Limitations

What Is the Statute of Limitations on Debt?

The Statute of Limitations sets a legal time limit on how long a creditor or debt collector has to take you to court over an unpaid debt.

After this time limit expires, the debt becomes “statute-barred”, meaning it is no longer legally enforceable through the courts.

⏳ The General Rule (England, Wales, and Northern Ireland)

Under the Limitation Act 1980, most unsecured debts — such as credit cards, personal loans, overdrafts, and utility bills — become statute-barred after 6 years if:

You haven’t made a payment towards the debt during those six years, and
You haven’t acknowledged the debt in writing during that time, and
The creditor hasn’t already taken court action (e.g. a County Court Judgment, or CCJ).

Once all three conditions are met, the creditor can no longer use the courts to make you pay the debt.

⚠️ Important: The debt still exists — it’s just unenforceable in court. Some collectors may still contact you, but you cannot be legally forced to pay.

🏠 Mortgage and Secured Debts

For mortgages and other secured loans, the limitation period is 12 years for the capital (the loan amount) and 6 years for any interest owed after default.

🧾 Council Tax, Benefit Overpayments & Taxes

These follow different rules:

Council Tax: Local authorities must start enforcement within 6 years of the amount becoming due.
HMRC debts (Tax, VAT, etc.): No statute of limitations — HMRC can pursue indefinitely.
Criminal fines: No time limit — they can always be enforced.

✍️ What “Acknowledging” a Debt Means

The 6-year clock can restart if you:

Make a payment (even £1), or
Send a written acknowledgment that you owe the debt (including email or text in some cases).

Simply talking on the phone about a debt does not restart the limitation period — it must be in writing.

🚫 When It’s Not Statute-Barred

A debt is not statute-barred if:

A County Court Judgment (CCJ) has already been issued.
You’ve made payments within the last 6 years.
You’ve acknowledged the debt in writing.

Without a valid Deed of Assignment, a DPC cannot legally enforce the debt without the original creditor joining the case.

This was confirmed in Van Lynn Developments v Pelias Construction Co Ltd (1968), where Lord Denning stated that “the debtor is entitled to view the sale agreement to ensure that the assignee can give him good discharge under the contract.”

✅ What To Do If Contacted About an Old Debt

If a debt collector contacts you about an old debt you believe is statute-barred:

Do not admit the debt or make any payment.
Ask for proof that the debt is not statute-barred.
Send a written letter stating that you believe it’s statute-barred under the Limitation Act 1980.