Written by
Philip Young
Founder of Garfield
Table of contents:
Limitation Periods for Debt Claims
Exceptions to the Limitation Periods
Practical Implications
Conclusion
I am owed money but the debt is quite old. Is this a problem?
Explore how the age of a debt affects its recoverability under English law, including limitation periods, exceptions, and practical implications for claimants pursuing old debts.

When considering whether the age of a debt is a problem for recovery under English law, it is important to understand the concept of limitation of actions, also known as time bar. The Limitation Act 1980 sets specific periods after which claims cannot generally be pursued in Court. The length of these periods varies depending on the type of claim and the circumstances surrounding it.
Limitation Periods for Debt Claims
1. Simple Contracts: For debts arising from simple contracts (i.e., standard contracts not executed with the increased formality of a Deed), the limitation period is six years. This period begins from the date on which the cause of action accrues, which is usually the date on which the payment was due and not paid. After six years from this date, the debtor can legally refuse to pay the debt by raising the defence of limitation.
2. Speciality Contracts: Debts arising from specialty contracts, such as those formalised through a Deed, benefit from a longer limitation period of twelve years. This extended period reflects the formal nature and perceived reliability of Deeds compared to simple contracts.
It is therefore important to issue a Claim Form within the applicable limitation period. If you do so, the debtor cannot usually raise limitation as a defence.
Exceptions to the Limitation Periods
Certain circumstances can modify or extend these standard limitation periods, allowing for claims to be brought even after the six or twelve year period has expired:
1. Fraud or Concealment: If the debtor has actively concealed their liability or committed fraud, the limitation period does not begin until the claimant discovers the fraud or could with reasonable diligence have discovered it. This provision prevents debtors from using deception to avoid liability.
2. Acknowledgment or Part Payment: If the debtor acknowledges the debt in writing or makes a payment towards the debt, the limitation period restarts from the date of acknowledgment or the date of the last payment. This is providing the acknowledgment or part payment occurred within the limitation period. This recognition or part-payment effectively resets the clock, allowing the creditor additional time to initiate legal action.
3. Claimant’s Disability: If the claimant is under a disability at the time the cause of action accrues (e.g., the claimant is a child or lacks mental capacity), the limitation period may be delayed until the disability ceases. For example, if the claimant is a child, the limitation period would not start until the claimant turns eighteen years old.
Practical Implications
If you are considering pursuing an old debt, it's crucial to determine:
- The exact date the payment was originally due.
- Whether the contract was made by way of Deed or was a simple contract.
- Any actions by the debtor that may have restarted the limitation period, such as acknowledgments or partial payments.
- Whether any exceptions such as fraud or the claimant’s disability might apply to extend the limitation period.
If a debt is nearing the end of its limitation period, acting swiftly to initiate a claim (by issuing a Claim Form) or secure an acknowledgment or part payment of the debt in writing from the debtor is advisable. This can prevent the debt from becoming statute-barred and unenforceable.
Conclusion
In summary, the age of a debt can indeed be problematic in terms of legal recovery. However, under English law, there are specific rules regarding limitation periods that determine how long you have to take action. For simple contracts, the period is six years, and for specialties, it is twelve years, with various exceptions potentially extending these periods. Understanding these rules and exceptions is key to assessing the viability of pursuing an old debt legally.