Dealing with long-term debt can be stressful; the thought of constant chasing from creditors can lead to feelings of anxiety, worry and even depression. However, the good news is, in the UK there’s typically a limitation period on many types of debt, including card debt and personal loan repayments.
Of course, this does not mean debts are totally written off after a certain period of time, or that further action will not be taken if you still owe a creditor six, eight, or 10 years down the line. For this reason, it’s essential to understand how long a debt can be pursued by creditors and what happens when it becomes statute barred.
In this guide, we’ll explain how the time limits associated with debt collection in the UK work and what you can do if you’re struggling to manage your debts.
If you owe money in the UK, you may be wondering how long creditors and debt collectors can legally pursue you for repayment. The answer depends on where in the UK you live and the type of debt.
The Basics of Debt Limitation Periods
Every country has laws that limit how long creditors and collectors can chase borrowers for repayment These time limits are known as limitation periods or prescription periods
The purpose of limitation periods is to encourage creditors to take timely action to recover debts. It’s considered unfair for creditors to wait indefinitely before taking steps to collect.
Once the limitation period expires:
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In England, Wales and Northern Ireland, the debt still exists but usually can’t be enforced through the courts.
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In Scotland, the debt is extinguished – it ceases to exist. Creditors have no further right to pursue repayment.
The Limitation Period in England, Wales and Northern Ireland
For most common debts like credit cards, personal loans and utility arrears, the limitation period in England, Wales and Northern Ireland is 6 years.
The 6 years runs from the date of the last payment or written acknowledgement of the debt. This includes:
- Making a partial payment
- Signing a payment schedule
- Responding to the creditor acknowledging the debt in writing
If 6 years have passed with no payment or acknowledgement, the creditor normally loses the right to sue through the courts. But the debt still exists and could be collected through other methods.
Some exceptions to the 6 year limit include:
- Mortgage shortfalls – interest is limited after 6 years but the capital balance after 12 years
- Government debts like income tax or VAT – no time limit
The Limitation Period in Scotland
In Scotland, the standard limitation period is 5 years. This applies to most consumer debts like credit cards and personal loans.
The 5 years runs from the date of last payment or written acknowledgement.
But unlike other parts of the UK, in Scotland the debt is extinguished after 5 years. The creditor has no further right to collect the debt by any means.
Exceptions to the 5 year limit include:
- Mortgage shortfalls – interest is limited after 5 years but capital can be pursued for 20 years
- Government debts like income tax or VAT – no time limit
What Happens After the Limitation Period Expires?
In England, Wales and Northern Ireland:
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The creditor can no longer successfully sue you in court for the debt. Any court claim should fail if you prove it is statute-barred.
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But the debt still exists, and creditors could attempt collection through other methods like debt collection agencies.
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The debt may remain on your credit file affecting future applications.
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If you make a payment or acknowledge the debt in writing, this restarts the limitation period. The creditor has another 6 years to take you to court.
In Scotland:
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The debt is extinguished – it ceases to exist as a legal obligation.
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The creditor has no further right to collect the debt by any means.
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If you make a payment after 5 years, you may be able to recover it as an “undue payment”.
How to Check If a Debt Can Still Be Collected
To check if creditors can still take action, review:
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When you last made a payment
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Any letters you’ve sent referencing or acknowledging the debt
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When you were last contacted about the debt
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Your credit file history for defaults and other activity
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Financial records like bank statements
If you’re unsure, contact the creditor in writing and request confirmation of any recent payments or acknowledgement.
What to Do if a Debt is Statute-Barred
If a creditor tries to collect an expired debt, advise them in writing that you dispute the debt due to the limitation period. Request they provide proof it can still be legally enforced.
Never ignore legal paperwork – always respond. If court papers arrive for an expired debt, tell the court it is statute-barred in your defence.
Seek professional debt advice if you are struggling with creditors. An advisor can help with checking limitation periods and stopping collection action on expired debts.
The Purpose of Limitation Periods
Limitation periods aim to protect consumers from lifelong debt pursuit. They encourage creditors to take timely action to recover monies owed.
Without limitation periods, creditors could theoretically sue borrowers decades after a debt was incurred. Memories fade, records are lost – this could severely hamper a person’s ability to defend themselves.
The law recognizes this is unfair. Limitation statutes provide closure, ensuring borrowers get on with life after a reasonable time period expires.
Summary
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The UK limitation period on most debts is 6 years in England/Wales/NI and 5 years in Scotland.
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The period runs from the date of last payment or written acknowledgement.
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In England/Wales/NI the debt still exists but usually cannot be sued on after limitation expires.
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In Scotland the debt is extinguished – it ceases to legally exist.
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Check your records and credit file to see if a debt’s limitation period has expired.
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Seek professional debt help if creditors pursue you for an expired statute-barred debt.
What is a statute barred debt?
As outlined above, the term ‘statute barred debt’ refers to a debt that has passed beyond its specific limitation period. These types of debt can no longer be legally pursued in the court and the creditor loses the legal right to take further action from this point on.
Put simply, statute barred status offers debtors respite from the constant pressure of collection efforts and the threat of potential legal action. They give hope to people struggling with long-term debt by ensuring that individuals are not endlessly hounded by creditors for old debts, especially when they’ve been unable to properly service the debt for an extended period of time.
When does a debt become statute barred?
When it comes to unsecured debts, in most cases, this time limit is set at six years from the date of the debtor’s last payment or acknowledgment of the debt. This is to say, if the creditor has not initiated court proceedings or obtained a court judgement against the debtor within this six-year period, the debt is considered statute barred. However, as discussed above, it’s important to remember that not all debts automatically become statute barred after six years. For example, secured debts, including mortgages, typically have a period of 12 years.
That being said, it’s not always as straightforward as it sounds. Even when you’ve determined the type of debt you’re dealing with, knowing at what exact point a debt becomes statute barred can be tricky. If you’re trying to find out if a debt has become statute barred and you’re unsure when the last activity on a specific account took place, considering the following factors can help you work it out:
- When was your last payment or acknowledgment?
The six-year countdown starts from the date of your last repayment, or the last time you actively acknowledge the debt. This could be ANY written communication that sees you actually acknowledge you owe the money.
- A lack of legal action
If you’ve not been made aware of any legal action being taken against you since your last payment, and you believe this final repayment to have occurred over six years ago, the debt is likely statute barred.
Remember – even if your debt has been sold to a debt collection agency or another creditor, the six-year clock doesn’t reset. It continues from the last activity on the account, even if ownership changes.
How Long can Debt Collectors Chase You?
FAQ
When can you no longer be chased for a debt?
Since the default was issued, if more than 6 years has passed whereby you haven’t made a payment or acknowledged the debt in writing, the debt is now statue barred.
What is the 11 word phrase to stop debt collectors?
If you want to stop debt collectors from calling you, the phrase to use is: “Please cease and desist all communication with me about this debt.” This simple phrase, when sent in writing to a debt collector, legally requires the debt collector to stop contacting you except to notify you of specific actions, such as …
Can a 13 year old debt still be collected?
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What happens after 7 years of not paying debt UK?
… last contact with the creditor, the debt has become “statue barred” and the creditor is no longer permitted to pursue payment or take further legal actionMar 9, 2025