Statute-barred debt: what it means and how to check yours
Written by
Emily Tye
Reviewed by
Amy LancashireA statute-barred debt is one that's too old for a creditor to enforce through the courts. In England, Wales and Northern Ireland, the time limit (sometimes called the statute of limitations on debt) is 6 years for most debts. The debt still exists after that, so you can still be asked to pay, but if the creditor takes you to court, the time limit is your defence. In Scotland, the limit is 5 years and the debt is wiped out.
When does a debt become statute barred?
Under the Limitation Act 1980, a credit card, loan or similar debt in England and Wales usually becomes statute barred 6 years after the creditor could first take you to court, as long as in that time:
you haven't made a payment towards it
you haven't admitted in writing that you owe it
the creditor hasn't started court action against you
When does the 6-year clock start?
For most credit cards and loans, it usually starts when a default notice runs out, not when you first missed a payment. A default notice is a formal warning that the Consumer Credit Act 1974 requires before a lender can ask for the full balance, and it gives you at least 14 days to catch up. This is simplified, and the exact date depends on your agreement.
What restarts the clock?
While the 6 years are running, section 29 of the Act restarts the clock if you make any payment, however small, including through a debt management plan. It also restarts if you sign a written admission that you owe the debt. A phone call on its own won't restart it, but emails, texts and online chat messages could count as writing.
For joint debts, a payment by either of you restarts the clock for both of you, but a written admission only restarts it for the person who made it.
How do I check if my debt is statute barred?
You're looking for 3 dates: when the creditor could first take you to court, when you last paid and when you last admitted the debt in writing. If 6 years have passed since the latest of these (5 in Scotland), the debt is likely to be statute barred.
Check your credit file for the default date. It's usually close to when the clock started.
Look through old bank statements and letters for your last payment and anything you've put in writing. Payments to a debt collector count too.
Search for a county court judgment (CCJ) against you on TrustOnline. If there is one, different rules apply.
Get free advice if you're still unsure. StepChange and National Debtline offer free debt advice, or you can find another free adviser through MoneyHelper.
If you have debts that aren’t statute-barred, our guide on how to get out of debt covers how to decide which to deal with first.
Does a statute-barred debt stay on my credit file?
Usually not, but a debt dropping off your credit file doesn’t mean it’s statute barred. A default stays on your credit file for 6 years from the default date, whether you pay or not, while any payment you make before the time limit runs out restarts the limitation clock.
Here's a simplified example. Say your account defaulted in March 2019 and you paid £10 a month until March 2021. The default would drop off your file in March 2025, but in England and Wales the debt wouldn't be statute barred until March 2027.
What if I get court papers about a statute-barred debt?
If you get court papers about an old debt, it's important to reply by the deadline, even if you think it's statute barred. The court won't check the time limit for you, so if you want to rely on it, you'd need to say so on your defence form. If you don't reply, the creditor could get a CCJ against you. A free debt adviser can help you fill in the form.
Is statute-barred debt different in Scotland and Northern Ireland?
Northern Ireland has the same 6-year limit as England and Wales, under the Limitation (Northern Ireland) Order 1989, and the debt still exists afterwards.
Scotland is different. Under the Prescription and Limitation (Scotland) Act 1973, a debt is 'prescribed' 5 years after it became enforceable, as long as the creditor hasn't made a relevant claim, such as court action, and you haven't acknowledged it by paying something or clearly admitting it in writing. A prescribed debt no longer exists, so the creditor can't recover it.
Which debts don't follow the 6-year rule?
In England and Wales, some debts work differently:
County court judgments: a debt with a CCJ can't become statute barred. The creditor can still enforce the CCJ after 6 years, but needs the court's permission to send bailiffs
Mortgage shortfalls: if your home is repossessed and sold for less than you owe, the lender has 12 years to recover the main amount and 6 years for interest
Income tax and VAT: the 6-year limit doesn't apply to HMRC recovering tax
Council tax: a council has 6 years to apply for a liability order. Once it has one, that time limit no longer applies
Benefit overpayments: these follow their own rules, so it's worth getting advice before assuming one is statute barred
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