Time limits on old debts: what statute barred and prescribed mean

Most debts have a time limit after which a creditor can no longer take court action to recover them. This guide explains the six-year and five-year rules, what restarts the clock, the exceptions and where to get free help.

What a time limit on a debt means

In the UK, most debts carry a legal time limit. Once the creditor has let that period pass without going to court, the debt is said to be statute barred, a term used in England, Wales and Northern Ireland, or prescribed, the Scottish term. Citizens Advice explains that in England a statute-barred debt is generally one you do not have to pay. The idea behind the rule is that nobody should face an open-ended claim over something that happened many years ago, when records are lost and memories fade. The limit applies to the creditor's ability to bring a claim, and it is separate from questions of whether the money was originally owed.

The rules are not identical across the UK. For most ordinary debts, such as credit cards, personal loans and overdrafts, the usual period in England, Wales and Northern Ireland is six years, and the Limitation Act 1980 sets that six-year period for claims founded on a simple contract in England and Wales. In Scotland the equivalent period is five years. The Financial Conduct Authority's handbook, which sets conduct rules for firms collecting consumer credit debts, uses the same two figures. The effect also differs: StepChange notes that in England, Wales and Northern Ireland the debt still exists but cannot be enforced through the courts, whereas in Scotland it stops existing in law.

How the clock works and what restarts it

Citizens Advice says the six-year period in England runs from the last time you wrote to the creditor or made a payment. That is why the dates on old statements matter. The clock can be restarted, which means a fresh six years can begin, and the Limitation Act 1980 section 29 provides that a person who acknowledges a debt or pays something towards it restarts the period from that date. Section 29 also states that once a right of action is barred, it is not revived, so the distinction is between a debt that is still within time and one where time has already run out.

Citizens Advice lists the things that could reset the limit: writing to the creditor, including by text, email or online chat, and making any payment, even a small one or one made by someone else on your behalf. It says phoning to check the details of a debt is not listed as a risk. For joint debts, a letter from one person resets the clock only for that person, while a payment resets it for both. In Scotland, Citizens Advice describes the same two triggers. StepChange adds that a letter which disputes the debt or says the amount is wrong does not count as an acknowledgement, which is why debt charities suggest particular wording rather than a casual reply.

Longer limits and exceptions

Not every debt follows the six-year or five-year pattern. Citizens Advice says that where a home has been repossessed and a shortfall remains, the limit in England is six years for interest and 12 years for the main amount, and that the 12 years run from the date a payment was missed. In Scotland, Citizens Advice gives 5 years for the interest and 20 years for the main amount, and 20 years for council tax arrears and for enforcing a court order. StepChange lists further cases, including no time limit on money owed to HMRC and a debt already covered by a court judgment. Citizens Advice also notes that if a breathing space applies when the limit would end, the limit is extended to 8 weeks after the breathing space ends.

A worked example

The figures here are illustrative only. Suppose someone in England last paid a credit card in March 2019 and has not written to the lender since. Using Citizens Advice's six-year rule, six years from March 2019 is March 2025, so by October 2026 the period would have ended roughly one year and seven months ago, from March 2025 to October 2026. If a collection letter arrives in October 2026 and the person makes a small payment of, say, £10 to show goodwill, the guidance says that could reset the limit to another six years, which would run to October 2032 (2026 plus 6). Real cases depend on exact dates and on whether a court judgment exists, so this is why Citizens Advice suggests getting advice before replying.

What creditors must and must not do

The FCA's rules for consumer credit firms say a firm must not mislead customers about their rights and obligations, must not suggest that a customer may face court action over a statute-barred debt when it knows, or should reasonably know, that the period has expired, and must not keep demanding payment after a customer has said they will not pay because the debt is statute barred. The handbook also says a firm should not try to recover a statute-barred debt in England, Wales or Northern Ireland if the lender or owner has not been in contact with the customer during the limitation period. These are conduct standards for firms. They do not mean that a letter will stop arriving, which is why knowing your dates matters.

Common mistakes and where to get help

Citizens Advice warns that once a court order exists it is too late to argue the debt is statute barred, so it matters not to ignore court papers. If you receive them, respond by the deadline and explain on the defence form that you believe the debt is statute barred, and the creditor then has to prove otherwise. If letters keep coming after you have told the creditor the debt is out of time, Citizens Advice says you can complain to the creditor and then to the Financial Ombudsman Service. Many people find that Citizens Advice, MoneyHelper, National Debtline and StepChange can check the dates for free and explain the next step for their own situation.

• Check the date of the last payment and the last written contact, using old bank statements and your credit file.
• Before writing to or paying a creditor, it can be worth checking whether doing so could reset the limit.

Check before you act

Rules, time limits and exceptions depend on the type of debt, the nation you live in and your own dates, and they can change. Please confirm the details on the official pages linked below, and speak to a free debt adviser before replying to a creditor or making a payment.

Sources

• Citizens Advice, if your debt is statute barred (England)
• Citizens Advice, check if you have to pay a debt (England)
• Citizens Advice Scotland, check if you have to pay a debt
• FCA Handbook, CONC 7.15 statute barred debts
• Limitation Act 1980, section 5 (legislation.gov.uk)
• Limitation Act 1980, section 29 (legislation.gov.uk)
• StepChange, statute barred debt