Out of Date Debt & Statute Barred Debt Explained
Everything you need to know about old debts, your rights under the Limitation Act 1980, and what creditors can and can't do.
What is Statute Barred Debt?
“Statute barred” is the legal term for a debt that is too old for a creditor to enforce through the courts. Under the Limitation Act 1980, once a set period of time has passed without contact or payment, a creditor loses the right to take legal action to recover what you owe.
This does not mean the debt disappears entirely — it simply means the creditor can no longer use court action (such as applying for a County Court Judgment, or CCJ) to force you to pay it.
Time Limits by Debt Type
The time limit depends on where you live and the type of debt involved.
| Debt Type | England, Wales & N. Ireland | Scotland |
|---|---|---|
| Credit cards, personal loans, overdrafts, catalogues | 6 years | 5 years |
| Mortgage shortfall (capital) | 12 years | 20 years |
| Mortgage shortfall (interest) | 6 years | 5 years |
| Council tax arrears | 6 years (liability order) | 20 years |
| Benefit overpayments (DWP) | 6 years | Varies |
| Income tax, VAT, capital gains tax | No limit | No limit |
| Existing County Court Judgment (CCJ) | No limit | No limit |
| Student loans (old-style, pre-1998) | 6 years | Seek advice |
When does the clock start?
For most unsecured consumer credit debts, the limitation period starts from the most recent of these events:
- The last payment you made towards the debt
- The last time you acknowledged the debt in writing
- When court action was started (e.g. a default notice expired)
Which Debts Can Become Statute Barred?
Not all debts are eligible. Here’s a quick reference:
How to Check if Your Debt is Statute Barred
To work out whether the limitation period has passed, identify the most recent of the three “clock-starting” events for your debt.
- Check your last payment date.
Look through old bank statements or request a payment history from the creditor. Asking for records does not constitute acknowledging the debt. - Check for written acknowledgement
Have you ever written to or emailed the creditor without disputing that you owe the debt? A signed letter that doesn’t challenge the debt counts as acknowledgement and resets the clock. - Check your credit file
Use Experian, Equifax, or TransUnion to see defaults, missed payments, and CCJs. You can also try multi-agency credit report service CheckMyFile, which will give a more in depth look at your credit file. Note: a “default” on your credit file is not the same as a default notice — they are different. - Count back six years
Take the most recent event and count forward six years (five in Scotland). If that date has passed, the debt is likely statute barred. - Check for existing court action
Search the Register of Judgments, Orders and Fines at trustonline.org.uk to see if a CCJ already exists. If one does, the Limitation Act no longer applies.
What Happens After a Debt Becomes Statute Barred?
Once a debt is statute barred, creditors and debt collection agencies cannot:
- Apply for a County Court Judgment (CCJ)
- Make you bankrupt over the debt
- Suggest or imply that court action is still possible
- Continue to demand payment once you have told them in writing the debt is statute barred
However, they may still:
- Contact you by letter, phone, or email requesting payment voluntarily
- For certain debts (like benefit overpayments), deduct money directly from wages or benefits without court action
- Record the debt on your credit file (stays for up to 6 years from the date of default)
Rules in Scotland — “Prescribed Debt”
Scotland operates under different rules
In Scotland, the legal term is “prescribed debt”. The key difference is that once a debt is prescribed, it no longer exists in law. Nothing more can be done to collect it.
- Most debts prescribe after 5 years
- Mortgage capital shortfalls are enforceable for 20 years
- Council tax debts are enforceable for 20 years
- Once prescribed, creditors have no recourse whatsoever
- If you paid a debt after it was already prescribed, you may be able to reclaim those payments
FCA Rules on Creditor Contact
Creditors regulated by the Financial Conduct Authority (FCA) must follow strict rules set out in the Consumer Credit sourcebook (CONC):
- Firms must not attempt to recover a statute barred debt if there has been no contact with the customer during the limitation period
- It is misleading to suggest court action is possible when the limitation period has expired
- Firms must stop demanding payment once you have confirmed in writing that the debt is statute barred and you will not be paying
If a creditor continues to contact you after you’ve sent a statute barred letter, you can report them to:
- Financial Conduct Authority (FCA) — fca.org.uk | 0800 111 6768
- Financial Ombudsman Service (FOS) — financial-ombudsman.org.uk | 0800 023 4567
- Local Trading Standards
Template Letter: Statute Barred Debt
If creditors continue to contact you about a debt you believe to be statute barred, send the following letter by recorded post and keep a copy for your records.
Free Help & Debt Advice Resources
If you’d prefer to speak to a free, independent organisation, you can contact:
They offer confidential, impartial advice at no cost.