Statute-barred debts

A statute-barred debt is one a creditor can no longer legally enforce through the courts. For most unsecured consumer debts in England & Wales, the limitation period is 6 years.

When does the 6-year clock start?

The clock generally starts from when you last:

• Made a payment toward the debt
• Acknowledged the debt in writing
• Or, in some cases, were in default by missing agreed payments

Each of these can restart the clock.

What restarts the clock?

• A new payment (even £1)
• A written letter acknowledging the debt
• Sometimes a CCJ (County Court Judgment) extends the period

Always think before you pay a near-limit debt — paying could restart the 6 years.

What statute-barred means

• The debt still exists
• The creditor can still ask for payment (contact and reminders are allowed)
• They cannot get a CCJ for the debt (using limitation as a defence)
• The debt may still appear on your credit file for 6 years from default

How to deal with a potential statute-barred debt

1. Check when you last paid or acknowledged the debt
2. Ask the creditor for a statement of account (history of payments and charges)
3. Use that history to establish the limitation date
4. If you believe it is statute-barred, send a statute-barred template letter — National Debtline provides one free
5. Do not make a small goodwill payment without checking first — it may reset the clock

When debts are NOT statute-barred

The 6-year limitation does not apply or is different for:

• Mortgage shortfalls (12 years for the principal, 6 for interest)
• HMRC debts (timelines vary by type)
• Council tax (usually enforced via liability order, not limitation)
• Some Student Loan Company cases
• Debts with CCJs already issued (the limit is 6 years from the CCJ itself)

A common pitfall

Debt purchasers (companies that buy old debts) sometimes try to collect without acknowledging limitation. Check the facts carefully before acting — see Where to find free UK debt advice.