Statute-barred debt in the UK. When old debts can no longer be enforced.

If you are being chased for an old debt, there is a UK legal rule that might protect you. It is called statute-barred debt. After a certain amount of time has passed, creditors lose the right to sue you. They can still ask for the money, but they cannot take you to court to force repayment. Understanding how this rule works could save you thousands of pounds.

Here is the calm, plain-English answer.

The short version

In the UK, the Limitation Act 1980 sets a time limit on when creditors can sue you for a debt. For most consumer debts (credit cards, personal loans, overdrafts, store cards), the limit is six years from the date of your last payment or last written acknowledgment that you owe the debt.

If that time limit has passed, the debt is statute-barred. The creditor cannot take you to court. They can still chase you informally by letter or phone, but they have no legal power to obtain a court judgment or force payment.

For mortgages, the time limit is 12 years. For mortgage interest specifically, it is six years. If you are in Scotland, the time limit for most debts is five years, not six.

The key to this rule is knowing when the clock starts ticking and what can restart it. One written acknowledgment that you owe the debt can reset the six-year timer to zero.

At a glance

What statute-barred actually means under the Limitation Act 1980

Statute-barred is a technical term. It means the law has set a time limit on the creditor's right to sue. Once that time limit expires, the creditor is barred (stopped) from taking legal action.

The law that creates this rule is the Limitation Act 1980. Section 5 of that Act sets the six-year limit for "simple contract debts" (debts from a contract that is not under deed, like credit cards, personal loans, overdrafts, and most consumer debts).

The bar is not absolute. It does not erase the debt. It does not forgive what you owe. It simply removes the creditor's legal power to pursue the matter in court. This distinction is important. A debt can be statute-barred but still real. You still owe the money. The creditor has simply lost the legal tool to force repayment.

Once a debt is statute-barred, you can use it as a defence in court. If a creditor sues you despite the time limit, your defence is that the debt is statute-barred and the court has no jurisdiction to hear the case. The claim should be struck out.

The six-year rule for most consumer debts

For the majority of debts you will encounter, the time limit is six years. This applies to:

• Credit card balances
• Personal loans from banks or credit unions
• Overdrafts
• Store cards and shop credit
• Mail-order catalogue debts
• Payday loans
• Money borrowed from friends (if informal, still six years)
• Unpaid invoices or bills owed between consumers

The clock starts on the date of your last payment to the creditor. If you have not made a payment for six years, and the creditor has not received a written acknowledgment from you that you owe the debt, the debt becomes statute-barred.

Example: You borrowed £2,000 on a credit card in 2015. You made your last payment on 1 September 2018. The six-year clock started on 1 September 2018. On 1 September 2024, the debt became statute-barred. After that date, the credit card company cannot successfully sue you, even if they pursue you for years.

The Financial Conduct Authority's Consumer Credit sourcebook (CONC 7.15) requires authorised firms not to mislead consumers about statute-barred debts. If a firm threatens legal action on a debt they know is statute-barred, that is a breach of their regulatory obligations.

The 12-year rule for mortgages

Mortgages are treated differently. The Limitation Act 1980, section 20, sets a 12-year time limit on the creditor's right to sue for unpaid mortgage capital.

This is much longer than the six-year rule for other debts, because mortgages are secured against the property. The lender has other remedies (they can repossess the home), so the courts have allowed a longer period for legal action.

If you have not made a mortgage payment in 12 years, the lender cannot sue for the arrears. However, they can still pursue other remedies. For example, they may still be able to repossess the property under the terms of the mortgage deed, depending on the wording and how long ago the default occurred.

For mortgage interest specifically, the time limit is six years (not 12). This means unpaid interest on a mortgage becomes statute-barred six years after the interest was due.

Example: You stopped paying your mortgage on 1 March 2010. The lender did not pursue you legally. The capital arrears become statute-barred on 1 March 2022. The interest on that period becomes statute-barred six years after each interest payment date.

What restarts the clock

The clock can be reset. If a creditor wants to extend their time to sue, they have several tools. The most important is written acknowledgment.

If you acknowledge in writing that you owe the debt, the six-year clock restarts from the date of that acknowledgment. "Written acknowledgment" means a signed or typed statement from you confirming that you owe the debt. A simple message saying "yes, I still owe you money" is enough. It does not have to be formal or elaborate.

A payment also restarts the clock. If you make any payment toward the debt, the time limit clock restarts from the date of that payment.

Example: You borrowed £3,000 on a credit card in 2016 and made your last payment on 15 July 2019. The debt is due to become statute-barred on 15 July 2025. But on 10 June 2025, you receive a letter from the creditor saying they are "willing to settle for £1,500". You respond in writing saying "I acknowledge I owe you the full amount." You have just restarted the clock. The debt is now statute-barred on 10 June 2031, not 15 July 2025.

If you make a part payment, the clock restarts too. Paying £100 toward a £5,000 debt resets the time limit.

What does NOT restart the clock

It is equally important to know what does NOT restart the time limit, because creditors sometimes claim actions that don't actually reset the clock.

Interest charges do not restart the clock. The time limit clock continues counting from your last payment or acknowledgment, even if the creditor has added interest to the debt.

Statements from the creditor do not restart the clock. Receiving a letter saying "you owe us £5,432" (the original debt plus interest) does not reset the limit. The clock is still counting from your last payment.

Threats of legal action do not restart the clock. A letter saying "we are about to sue" or "pay now or we will go to court" does not restart anything. The creditor is only bluffing if the time limit has already passed.

Threats of enforcement action (bailiffs, freezing orders, county court judgments) do not restart the clock either.

Default notices do not restart the clock. A formal notice that you are in default of the contract does not reset the time limit.

Requests for payment do not restart the clock. A phone call or letter asking for money does not restart it.

The only things that restart the clock are: written acknowledgment from you, a payment from you (even a small one), or a court judgment against you (which restarts the clock from the date of judgment).

How to use statute-barred debt as a defence

If you are sued on a statute-barred debt, you can defend yourself. The defence is straightforward.

When you receive a claim form from the court, one of the first things to check is the date of the debt. If it is more than six years old (or 12 years for mortgages) and you have not made a payment or written acknowledgment in that time, the debt is statute-barred.

You should send back to the court a document called a "Defence and Counterclaim" (or just a Defence, if you are not making a counterclaim). In this document, you state that the debt is statute-barred under the Limitation Act 1980, section 5 (or section 20 if it is a mortgage). You give the date of the last payment or acknowledgment and calculate the six-year cutoff date.

The format is simple: "The claimant's claim is statute-barred. The cause of action accrued on [date of last payment], which is more than six years before the date of this claim. Under the Limitation Act 1980, section 5, the claimant has no right of action."

When the judge receives this Defence, the claim should be struck out (dismissed). The creditor has no legal right to pursue the matter.

This is one area where defending yourself in court as a litigant in person is genuinely straightforward. You do not need case law citations or complex argument. The law is clear. If the time limit has passed, the creditor cannot sue. Many judges will strike out the claim on paper without even a hearing.

How to write a statute-barred debt letter

If you want to notify a creditor formally that a debt is statute-barred, you can write a letter. This is useful if you want to stop them from pursuing you, or if you are considering settlement negotiations and want to signal your legal position.

The letter should:

1. State the date you last paid or acknowledged the debt.
2. Calculate the six-year cutoff date.
3. State that the debt is now statute-barred under the Limitation Act 1980, section 5.
4. Request that they cease collection activity.
5. Request written confirmation that they will not pursue legal action.

Example letter:

Dear [Creditor name],

Re: Statute-barred debt - [account number, if you have it]

I am writing to notify you that the debt you are pursuing against me is statute-barred under the Limitation Act 1980.

My last payment to your company was on [date]. More than six years have passed since that date. Under section 5 of the Limitation Act 1980, your company has no legal right to sue me for this debt.

I have not acknowledged the debt in writing since [last payment date], and I have made no further payments.

I request that you cease further collection activity immediately. Please provide written confirmation within 14 days that you will not pursue legal action on this debt.

Yours faithfully, [Your name]

Send this letter by registered post, so you have proof of delivery. Keep a copy for your records.

If the creditor ignores the letter and continues to chase you, or if they sue despite the statute-barred status, you have a written record of the facts. This will help your case if you end up in court.

What creditors can still do with a statute-barred debt

Even though a debt is statute-barred and they cannot sue, creditors have other tools at their disposal. Understanding what they can and cannot do will help you assess the threat level.

They can still chase you by letter or phone. They can ask for payment. They can send multiple letters reminding you of the debt.

They can report it to credit reference agencies and affect your credit score. A statute-barred debt can still damage your credit rating for years, depending on how recently it was reported. This is frustrating and unfair, but it is legal.

They can use a bailiff or debt collector to pursue the matter informally. If they do, this is often a sign they are bluffing, because bailiffs have no legal power to enforce a statute-barred debt. A bailiff cannot force entry, seize goods, or obtain a warrant. But they can be intimidating.

They cannot obtain a court judgment. This is the key distinction. If a debt is statute-barred, the courts will not hear the case.

They cannot obtain an attachment of earnings order (which forces your employer to deduct money from your wages).

They cannot obtain a charging order on your home or other property.

They cannot obtain a freezing order on your bank account.

They cannot use a county court bailiff to enforce a judgment (because there is no judgment to enforce).

If they claim in writing that they will do any of these things, and the debt is statute-barred, you can report them to the Financial Conduct Authority (if they are an authorised firm) or to Citizens Advice Consumer Service.

Exceptions and when statute-barred does not apply

Statute-barred is a strong protection, but there are exceptions. In some situations, the time limit does not apply or is extended.

If you have obtained a county court judgment against you, the time limit restarts from the date of judgment. A judgment is a formal court decision. If a creditor sues you and wins, the judgment becomes a new debt that must be pursued within six years of the judgment date.

If you have an agreement with the creditor to pay in instalments, and you have made one of the payments in the last six years, the clock resets from that payment date.

If you are under 18, the six-year clock may not have started yet. When you reach age 18, the clock begins. This is a safeguard to protect minors from debts incurred as children.

If you have no capacity (for example, if you are diagnosed with severe mental illness and a court-appointed deputy manages your affairs), the clock may be paused or extended. This is to prevent creditors from pursuing people who cannot manage their own legal affairs.

For joint debts, if one person acknowledges the debt or pays it, this might restart the clock for both parties. Consult a solicitor on joint debts, as the rules are complex.

The five-year rule in Scotland

Scotland's legal system is separate from England and Wales, and the time limits are different.

In Scotland, the time limit for most consumer debts is five years, not six. This is a genuine advantage if you are Scottish or if the debt arose in Scotland.

The five-year clock works the same way. It starts from your last payment or acknowledgment. It restarts if you make a payment or write to acknowledge the debt.

After five years, the debt is prescription-barred (the Scottish term for statute-barred). The creditor cannot sue.

If you are being pursued on an old debt and you are based in Scotland, check the date carefully. The shorter time limit could be your protection.

Day-to-day for someone receiving old-debt letters

You have received a letter from a debt collection agency or the original creditor chasing an old debt. What do you do next?

First, do not panic. Many people receiving old-debt letters assume they have to pay. They do not.

Second, gather your records. Look for proof of your last payment. A bank statement, cancelled cheque, credit card statement, anything showing the last time you paid. Write down the date.

Third, calculate six years from that date. If six years have passed and you have not made a payment or written acknowledgment since, the debt is statute-barred.

Fourth, look for any written acknowledgments you may have sent. A letter, email, or text message saying "yes, I owe you money" counts. If you find one, the clock restarted from that date.

Fifth, do not ignore the letter. Ignoring it does not help. Respond in writing (keep a copy) to state that you believe the debt is statute-barred and you will not be paying. You can use the letter template above.

Sixth, be prepared for more letters and calls. Some creditors and debt collectors will ignore your statute-barred defence and keep chasing. This is pressure tactics. If the debt is genuinely statute-barred, they cannot win in court.

Seventh, if you are sued, file your Defence saying the debt is statute-barred. The claim should be struck out.

Eighth, if you need help understanding whether your specific debt is statute-barred, contact Citizens Advice or StepChange Debt Charity. Both offer free advice.

Common misconceptions

People often get statute-barred wrong. Here are the most common mistakes.

"If I pay anything, I get a fresh six years." Partly true. A payment does restart the clock. But the creditor has to prove the payment was voluntary. If they drag a single pound from your account without permission, that is not a restart. Only payments you make willingly count.

"Sending a letter saying I owe the debt restarts the clock." Yes, it does. This is why you should be very careful about what you write in letters to creditors. Never write "I acknowledge I owe you this debt" unless you want to give them another six years to sue. Instead write, "I dispute this debt" or "This debt is statute-barred."

"If they can't sue, I don't really owe the money." Not true. Statute-barred does not erase the debt. You still owe the money. The creditor has simply lost the legal tool to force repayment. If you win the lottery and want to clear your conscience, you can still pay a statute-barred debt. It is not illegal to pay it. It is just not legally enforceable.

"If they are still chasing me, the debt is not statute-barred." Not necessarily. Many creditors and debt collectors chase statute-barred debts hoping the debtor will not know the law. The fact that they are chasing you does not mean they have legal grounds to do so.

"I have to admit the debt before I can use statute-barred as a defence." Not true. You do not have to admit the debt exists. You can defend on the basis that even if the debt did exist, it is now statute-barred.

"Statute-barred debts disappear after six years." Not quite. They are still reported to credit agencies and affect your credit score. They may still be recoverable through informal pressure. The clock only stops the creditor from suing.

"Joint debts are twice as hard to defend." Not necessarily, but they are more complex. If you are jointly liable with someone else, the rules interact in ways that require careful legal thought. Consult a solicitor on joint debts.

Related concepts

If you found this page useful, you might need to understand these related terms and ideas:

• Limitation Act 1980. The statute that sets time limits on creditors' rights to sue. Section 5 covers simple contract debts (six years). Section 20 covers mortgages (12 years).
• Prescribed debt. In Scotland, the equivalent term for statute-barred. A debt that is prescribed is no longer legally enforceable.
• Debt collection agency. A company licensed to pursue debts on behalf of creditors. They have no special legal powers; they can only do what the creditor can do. If the debt is statute-barred, the agency cannot sue either.
• County court claim. The formal legal process for recovering a debt in England and Wales. If the debt is statute-barred, a county court claim will be struck out.
• Defence. A legal document you file with the court if you are sued, stating why the claim should fail. Statute-barred is a complete Defence.
• Written acknowledgment. A signed or typed statement confirming that you owe a debt. This restarts the six-year clock.
• Court judgment. A formal court decision. If a creditor obtains a judgment against you, the judgment itself restarts the time limit, but only from the date of judgment.
• Bailiff. A court officer who enforces judgments. A bailiff cannot enforce a judgment that does not exist. If the debt is statute-barred, there is no judgment.
• Credit reference agency. A company that holds credit reports. They may continue to report a statute-barred debt, affecting your credit score, even though it is not legally enforceable.
• Lien. A legal right to hold onto someone's property until a debt is paid. Liens work differently from other debts and may have different time limits.

Sources

The information on this page is based on:

• The Limitation Act 1980. The primary legislation setting time limits on creditors' rights to sue. https://www.legislation.gov.uk/ukpga/1980/58/contents
• The Financial Conduct Authority Handbook, CONC 7.15. Rules for authorised firms on interactions with consumers over statute-barred debts. https://www.handbook.fca.org.uk/handbook/CONC/7/15.html
• Citizens Advice. Charity providing free, confidential advice on debt, consumer issues, and rights. https://www.citizensadvice.org.uk/
• StepChange Debt Charity. UK charity offering free debt advice and support. https://www.stepchange.org/
• Court of Appeal decisions on Limitation Act 1980 interpretation (available via Find Case Law, caselaw.nationalarchives.gov.uk)

This page was reviewed for accuracy on 2026-05-28. UK debt law evolves, so check the legislation and regulatory guidance for the most current information.

A note on what this page is and isn't

This page provides information about UK debt law and statute-barred debts. It is not legal advice. It does not cover every situation or exception, and it is not a substitute for talking to a qualified solicitor about your specific case.

If you are being pursued for a debt and you think it might be statute-barred, the best approach is to respond in writing (keeping a copy) to say so, and then seek help from a free advice service like Citizens Advice or StepChange if you need it.

CaseCalm helps people understand their legal rights and draft court documents. We are not a law firm and we are not authorised by the Solicitors Regulation Authority. When your situation needs personal legal advice, we point you to qualified professionals.

Written by Peter Kolomiets. Reviewed for accuracy 2026-05-28. Comments or corrections to peter@casecalm.com.