A statute barred debt is an old debt that can no longer be enforced through the courts. In England and Wales, most debts become statute barred after 6 years calculated from the date of breach of contract. Understanding this rule matters whether you're chasing a debt or being chased for one.
The 6-year limitation period
Under the Limitation Act 1980, creditors have 6 years to bring a court claim for most debts. The clock starts from:
- The date the debt became due, OR
- The date of the last payment or written acknowledgment
After 6 years with no relevant activity, the debt becomes "statute barred" and courts will refuse to enforce it.
However, for debts arising from contracts made by way of deed (i.e. a contract under seal) then the limitation period is 12 years.
The key rule is that you need to issue a Court claim within the limitation period, and it is very unwise to leave the claim for too long.
What counts as resetting the clock?
The 6-year period restarts if:
The debtor makes a payment: Any payment, even a small one, resets the clock to zero.
The debtor acknowledges the debt in writing: A letter or email admitting they owe the money restarts the limitation period.
What doesn't reset the clock:
- Phone calls (even if they admit owing money)
- The creditor sending letters or demands
- The creditor selling the debt to someone else
- Verbal promises to pay
For creditors: don't let debts become statute barred
If you're owed money, act within 6 years:
Year 1-2: Chase actively with reminders and escalation
Year 2-3: Send letter before action, consider court action
Year 3-5: File court claim before it's too late
Year 5+: Urgently pursue, limitation is approaching
Once statute barred, you lose the legal right to pursue the debt through the courts.
Key action: File your court claim well before the 6 years expires. Even if the case takes a while to resolve, filing the claim preserves your right.
For debtors: when can you stop worrying?
If 6 years have passed since:
- You last made any payment, AND
- You last acknowledged the debt in writing, AND
- The contract was not made by way of deed.
Then the debt may be statute barred. The creditor cannot:
- Successfully sue you
- Get a CCJ
- Enforce through bailiffs
Special cases
12-year limitation for some debts:
- Debts secured by a deed (some mortgages)
- Debts owed under a deed of covenant
- Recovery of land
Different rules for:
- Personal injury claims: 3 years
- Scotland: 5 years (different legal system)
- Tax debts: Different rules apply
Does the debt disappear?
No. A statute barred debt:
- Still exists legally
- Can still appear on your credit file (but usually only for 6 years)
- Can still be collected through non-court means (calls, letters)
- The debtor can still voluntarily pay
What changes is that the creditor cannot force payment through the courts.
What if someone sues for a statute barred debt?
If a creditor files a court claim for a statute barred debt:
- If you want to defend the claim, you must file a Defence and raise the limitation defence within it
- Don't ignore it or you'll get a default CCJ anyway
- The court will dismiss the claim if you prove the debt is statute barred
The court doesn't automatically check if a debt is statute barred, you must raise it as a defence.
Credit file implications
Debts stay on your credit file for 6 years from:
- The default date, OR
- The date of the last payment
This is separate from the limitation period. A debt can be statute barred (can't be sued) but still on your credit file, or vice versa.
How to check if a debt is statute barred
- Find the last payment date - Check bank statements, payment records
- Find the last written acknowledgment - Any letters/emails admitting the debt
- Calculate 6 years from whichever is most recent or, if neither happened, from the date that the debt should have been paid
- Check for special categories - Mortgages, deeds, tax have different rules
For creditors: avoiding limitation problems
Best practices:
- Track payment due dates and last contact dates
- Act promptly on overdue debts
- File court claims well before 6 years
- Keep records of all payments and acknowledgments
Use Garfield: Our automated system tracks deadlines and prompts action, so you never accidentally let a debt become statute barred.
Getting help
If you're owed money: Don't wait until year 5 to take action. Start debt recovery promptly, and use Garfield to automate the process before limitation becomes an issue.
If you're being chased: Seek debt advice from organisations like StepChange, Citizens Advice, or National Debtline. They can help you understand if a debt is statute barred.