How Long Can You Legally Be Chased for a Debt in the UK?

In the UK, most unsecured debts become unenforceable after six years under the Limitation Act 1980, meaning creditors lose the legal right to pursue court action once this period expires. However, the limitation clock can restart if you make a payment, acknowledge the debt in writing, or if the creditor obtains a County Court Judgment (CCJ) before the deadline. Understanding these timeframes is critical for both individuals managing personal debts and businesses recovering outstanding invoices—acting too late can mean losing recovery rights entirely.

This matters now because debt collection practices are heavily regulated, and knowing your legal position protects you from aggressive tactics or helps you recover what you’re owed before time runs out. Whether you’re a debtor questioning old collection attempts or a business owner assessing recovery options, limitation periods directly impact your rights, obligations, and financial outcomes.

This guide explains exactly how long creditors can legally chase debts in the UK, when limitation periods start and reset, what happens when debts become statute-barred, and how businesses can recover outstanding accounts within legal timeframes while maintaining compliance and protecting cash flow.

Understanding Debt Limitation Periods in the UK

Debt limitation periods define the legal timeframe within which creditors can take court action to recover money owed. Once this period expires, the debt becomes “statute-barred,” meaning it remains owed but cannot be legally enforced through the courts. This doesn’t erase the debt—you still technically owe it—but creditors lose their strongest recovery tool: the ability to obtain a judgment and enforce payment through bailiffs, attachment of earnings, or charging orders.

What Is a Limitation Period for Debt?

A limitation period is the maximum time a creditor has to bring legal proceedings to recover a debt. For most unsecured debts in England and Wales—including credit cards, personal loans, overdrafts, store cards, and unpaid invoices—this period is six years from the date the debt became due or from the last acknowledged payment. Once six years pass without court action, acknowledgment, or payment, the debt becomes statute-barred and unenforceable in court.

This protection exists to prevent indefinite legal liability and encourage creditors to act promptly. The Limitation Act 1980 establishes these timeframes across England and Wales, while Scotland operates under different rules (typically five years under the Prescription and Limitation (Scotland) Act 1973).

The Limitation Act 1980: Legal Foundation

The Limitation Act 1980 is the primary legislation governing debt limitation periods in England and Wales. Section 5 specifically addresses “simple contract” debts—the category covering most consumer and business debts. Under this law, creditors must initiate court proceedings within six years of the cause of action accruing, which typically means six years from when the debt became payable or from the last payment or written acknowledgment.

Key provisions include:

• Section 5: Six-year limitation for simple contract debts
• Section 8: Twelve-year limitation for debts secured by deed (formal written agreements under seal)
• Section 29: Acknowledgment or part payment restarts the limitation period
• Section 32: Fraud or concealment can extend limitation periods

The Act applies to England and Wales only. Scotland has separate legislation with a five-year limitation period for most debts, while Northern Ireland follows similar principles to England and Wales but with distinct legal frameworks.

Six-Year Rule vs. Twelve-Year Rule Explained

Six-Year Rule: Applies to most unsecured debts arising from simple contracts—credit agreements, personal loans, overdrafts, utility bills, unpaid invoices, and similar obligations. The clock starts from the date the debt became due (the payment deadline) or from the last payment or written acknowledgment, whichever is later.

Twelve-Year Rule: Applies to debts secured by a deed—a formal legal document signed, witnessed, and delivered as a deed. This includes some mortgage agreements, certain business loans, and formal settlement agreements. The extended timeframe reflects the greater formality and legal weight of deed-based obligations.

Practical Distinction: If you signed a standard credit agreement or received an invoice, the six-year rule applies. If you signed a deed (clearly marked as such with specific execution requirements), the twelve-year rule applies. Most consumer and business debts fall under the six-year category.

When Does the Limitation Period Start?

The limitation period doesn’t start when the debt is created—it starts when the creditor gains the legal right to sue, which typically occurs when payment becomes due. Understanding this start date is crucial because any miscalculation can mean the difference between an enforceable and statute-barred debt.

Date of Last Payment or Acknowledgment

The limitation clock begins on the date the debt became payable—usually the payment due date specified in your agreement or invoice. However, the clock resets if you make a payment or acknowledge the debt in writing after this date. The new limitation period then runs from the date of that payment or acknowledgment.

Example: You defaulted on a credit card in January 2018. The six-year limitation would normally expire in January 2024. But if you made a £50 payment in June 2020, the limitation period resets to June 2026. If you acknowledged the debt in writing in March 2022, the period resets again to March 2028.

This reset mechanism is critical: even small actions can extend creditors’ enforcement rights for another six years. Citizens Advice confirms that any payment or written acknowledgment restarts the limitation period entirely.

How Partial Payments Reset the Clock

Making any payment toward a debt—no matter how small—restarts the six-year limitation period from the date of that payment. This applies even if you pay £1 on a £5,000 debt. The law treats partial payment as acknowledgment that the debt exists and is owed, giving creditors a fresh six-year window to pursue legal action.

Critical Implications:

• Paying £10 on an old debt can make it enforceable for another six years
• Payment plans restart the clock with each installment
• Direct debit payments continue resetting the limitation period
• Even payments made under financial pressure or without legal advice have this effect

Business Context: For businesses recovering debts, securing even small payments from debtors can be strategically valuable—not just for cash flow but for preserving legal enforcement rights. Conversely, debtors should carefully consider whether making payments on old debts is in their interest, especially if the limitation period is close to expiring.

Written Acknowledgment and Its Legal Impact

Written acknowledgment of a debt—even without payment—restarts the limitation period. This includes letters, emails, text messages, or signed documents where you admit owing the debt. The acknowledgment must be in writing and signed (physically or electronically) by you or your authorized representative.

What Counts as Acknowledgment:

• Signing a letter confirming you owe the debt
• Emailing a creditor saying “I know I owe this but can’t pay right now”
• Signing a payment plan agreement
• Completing a financial statement acknowledging the debt
• Text messages admitting the debt exists

What Doesn’t Count:

• Verbal admissions (phone calls don’t restart the clock)
• Unsigned letters or emails
• Requests for proof of debt without admitting you owe it
• Disputing the debt or asking for documentation

Legal Requirement: Under Section 29 of the Limitation Act 1980, acknowledgment must be in writing and signed. Verbal acknowledgment has no legal effect on limitation periods, though creditors may use recorded calls as evidence in other contexts.

What Happens After the Limitation Period Expires?

Once the limitation period expires without court action, payment, or acknowledgment, the debt becomes statute-barred. This fundamentally changes the legal relationship between creditor and debtor, though it doesn’t eliminate the debt entirely.

Statute-Barred Debt: Definition and Implications

A statute-barred debt is one where the limitation period has expired, making it unenforceable through court action. The debt still legally exists—you still owe it—but the creditor cannot obtain a County Court Judgment (CCJ) or use legal enforcement mechanisms like bailiffs, attachment of earnings, or charging orders.

Key Characteristics:

• The debt remains on your credit file until six years from the default date (separate from the limitation period)
• You’re not legally obligated to pay, though you can choose to do so
• Creditors can still ask for payment but cannot threaten or pursue court action
• Making any payment or acknowledgment restarts the limitation period

StepChange Debt Charity explains that statute-barred status provides significant protection but doesn’t automatically stop all collection activity—creditors can still contact you, though their options are limited.

Can Creditors Still Contact You?

Yes, creditors can still contact you about statute-barred debts, but their approach is heavily restricted. They can request payment and send letters, but they cannot:

• Threaten court action (this would be misleading and potentially illegal)
• Imply the debt is legally enforceable
• Use aggressive or harassing tactics
• Misrepresent your legal obligations

FCA Regulations: The Financial Conduct Authority (FCA) requires debt collectors to treat customers fairly and not pursue debts they know or should know are statute-barred. FCA rules state that firms must not mislead customers about their liability or enforcement options.

Your Rights: You can request that creditors stop contacting you about statute-barred debts. If they continue or use misleading tactics, you can complain to the Financial Ombudsman Service or report them to the FCA.

Your Rights When a Debt Becomes Unenforceable

When a debt becomes statute-barred, you gain significant legal protections:

Right to Refuse Payment: You’re not legally obligated to pay statute-barred debts. While you can choose to pay if you wish, creditors cannot force you through legal action.

Right to Challenge Collection Attempts: If creditors threaten court action on statute-barred debts, you can challenge this as misleading conduct. The FCA considers this a serious breach of conduct rules.

Right to Request Cessation of Contact: You can formally request that creditors stop contacting you about statute-barred debts. While they may still send occasional reminders, persistent contact after such requests may constitute harassment.

Right to Dispute Limitation Status: If creditors claim a debt isn’t statute-barred, you can request proof of when the limitation period started and whether any payments or acknowledgments reset the clock.

Important Caveat: These rights apply only to statute-barred debts. If creditors have obtained a CCJ before the limitation period expired, the debt remains enforceable for six years from the judgment date (and can be extended further).

Exceptions to the Six-Year Limitation Period

While the six-year rule covers most debts, several important exceptions exist where different timeframes or rules apply. Understanding these exceptions is critical for both debtors and creditors.

Mortgage Shortfalls and Secured Debts

Mortgage shortfall debts—the amount still owed after a property is repossessed and sold—follow different limitation rules depending on how the debt is structured:

Standard Mortgage Shortfalls: If the mortgage was a simple contract, the six-year limitation applies from the date the shortfall became due (typically when the property was sold). However, if the mortgage was secured by deed, the twelve-year limitation period applies.

Practical Impact: Most modern mortgages are deeds, meaning lenders have twelve years to pursue shortfall debts. This extended timeframe reflects the formal nature of mortgage agreements and the significant sums involved.

Secured Debts Generally: For debts secured against property (mortgages, secured loans, charging orders), creditors have twelve years to take action if the debt is secured by deed. The security interest itself may also allow creditors to enforce against the property beyond standard limitation periods.

County Court Judgments (CCJs)

County Court Judgments fundamentally change limitation rules. Once a creditor obtains a CCJ, the original debt limitation period becomes irrelevant—the judgment itself creates a new enforcement period:

Six-Year Enforcement Period: CCJs are enforceable for six years from the judgment date. During this time, creditors can use enforcement methods like bailiffs, attachment of earnings, and charging orders.

Extension Beyond Six Years: Creditors can apply to the court for permission to enforce CCJs older than six years. Courts typically grant this if creditors can show good reason for the delay.

Practical Implication: A CCJ obtained just before the original limitation period expired can extend enforcement rights for another six years (or longer with court permission). This is why creditors often rush to court as limitation deadlines approach.

The Ministry of Justice confirms that CCJs remain on credit files for six years but can be enforced beyond this with court approval.

HMRC Debts and Tax Arrears

HM Revenue & Customs (HMRC) debts follow different rules depending on the debt type:

Income Tax and National Insurance: HMRC can pursue these debts for up to six years from the end of the tax year in which the liability arose. However, if there’s evidence of deliberate non-disclosure or fraud, HMRC can go back twenty years.

VAT Debts: Similar rules apply—six years for standard cases, twenty years for deliberate evasion.

Self-Assessment Penalties: HMRC can pursue penalties for six years from the date they became due.

No Limitation for Fraud: If HMRC suspects deliberate tax evasion, there’s effectively no limitation period—they can pursue debts indefinitely.

Practical Context: HMRC has extensive powers beyond standard creditors, including direct earnings attachment and bankruptcy proceedings. HMRC’s debt collection powers are more robust than those of commercial creditors.

Council Tax and Benefit Overpayments

Council Tax: Local authorities can pursue council tax debts for six years from the date the liability arose. However, if they obtain a liability order (a court order confirming the debt), they can enforce it indefinitely—there’s no limitation period for enforcement once a liability order exists.

Benefit Overpayments: The Department for Work and Pensions (DWP) can recover benefit overpayments indefinitely—there’s no limitation period. The DWP can deduct overpayments from ongoing benefits or pursue recovery through other means regardless of how old the debt is.

Practical Impact: Council tax and benefit debts are particularly persistent. Local authorities and the DWP have strong enforcement powers and aren’t bound by standard limitation rules once they’ve obtained the necessary orders.

How Creditors Can Legally Extend the Limitation Period

Creditors have several legal mechanisms to extend or reset limitation periods, preserving their enforcement rights even as deadlines approach.

Court Action Before the Deadline

The most definitive way creditors extend their enforcement rights is by issuing court proceedings before the limitation period expires. Once a claim is filed with the court—even if it’s on the last day of the limitation period—the debt is no longer subject to limitation rules.

Process:

1. Creditor files a claim with the County Court
2. Court issues the claim and serves it on the debtor
3. If the debtor doesn’t respond, the creditor can request a default judgment
4. If the debtor defends, the case proceeds to hearing

Timing is Critical: The claim must be issued (filed with the court) before the limitation period expires. Service on the debtor can happen afterward. Many creditors file claims just before limitation deadlines to preserve their rights while continuing negotiation.

Strategic Implication: For businesses recovering debts, monitoring limitation deadlines and initiating court action when necessary is essential. Waiting too long eliminates legal enforcement options entirely.

Acknowledgment of Debt in Writing

As discussed earlier, written acknowledgment restarts the limitation period. Creditors often use this strategically by:

Requesting Signed Statements: Asking debtors to sign financial statements or payment plan agreements that acknowledge the debt.

Email Correspondence: Encouraging debtors to confirm the debt in writing via email, which legally counts as written acknowledgment.

Payment Plan Agreements: Offering payment plans that require signed agreements acknowledging the full debt amount.

Legal Requirement: The acknowledgment must be in writing and signed. Creditors cannot rely on verbal admissions or unsigned communications.

Debtor Protection: Before signing anything related to old debts, consider whether the debt might be statute-barred. Signing an acknowledgment restarts the clock and gives creditors another six years to pursue legal action.

Part Payments and Debt Reactivation

Any payment toward a debt—regardless of amount—restarts the limitation period. Creditors use this by:

Encouraging Small Payments: Requesting token payments to “show good faith” or “keep the account active.” Even £1 restarts the six-year clock.

Payment Plans: Structuring payment plans where each installment resets the limitation period, ensuring the debt remains enforceable throughout the plan.

Direct Debit Arrangements: Setting up recurring payments that continuously reset the limitation period with each transaction.

Business Strategy: For businesses recovering debts, securing even small payments serves dual purposes—generating cash flow and preserving legal enforcement rights. For debtors, making payments on old debts should be carefully considered, especially if limitation periods are close to expiring.

Responding to Debt Collection Attempts

When contacted about old debts, your response can significantly impact your legal position. Understanding how to verify debt status and protect your rights is essential.

Verifying the Debt’s Age and Status

Before responding to collection attempts, verify:

When Did the Debt Become Due? Identify the original payment deadline or default date. This is when the limitation period started.

When Was the Last Payment? Check your records for any payments made after the default date. Each payment resets the limitation period.

Was There Written Acknowledgment? Review any correspondence to see if you acknowledged the debt in writing after the default date.

Calculate the Limitation Period: Add six years to the later of: (1) the default date, (2) the last payment date, or (3) the last written acknowledgment date.

Request Documentation: Ask creditors to provide:

• Original credit agreement or invoice
• Full payment history
• Date of default
• Evidence of any payments or acknowledgments

Legal Right to Information: Under the Consumer Credit Act 1974, you can request a copy of your credit agreement for £1. Creditors must provide this within 12 working days or stop pursuing the debt.

Requesting Proof of Debt Documentation

When contacted about old debts, you have the right to request proof before acknowledging or paying anything:

What to Request:

• Copy of the original credit agreement or contract
• Full account statements showing payment history
• Evidence of the default date
• Proof of any payments or acknowledgments that reset the limitation period
• Confirmation of whether court action has been taken

How to Request: Send a written request (letter or email) stating: “I require proof of this debt before I can consider your request for payment. Please provide [list specific documents]. I do not acknowledge this debt and reserve all my rights.”

Why This Matters: Requesting proof doesn’t acknowledge the debt if worded carefully. It protects you from making payments on debts that may be statute-barred or that you don’t actually owe.

Creditor Obligations: Under FCA rules, creditors must provide adequate information about debts they’re pursuing. Failure to do so may constitute unfair treatment.

What to Do If You’re Contacted About Old Debt

Step 1: Don’t Panic or Make Immediate Payments: Collection attempts on old debts are common, but you’re not obligated to pay statute-barred debts.

Step 2: Verify the Debt’s Age: Calculate whether the six-year limitation period has expired based on the default date and any subsequent payments or acknowledgments.

Step 3: Request Proof: Ask for documentation proving the debt’s validity and age before responding further.

Step 4: Check for Court Action: Verify whether the creditor has obtained a CCJ. If so, the debt remains enforceable regardless of the original limitation period.

Step 5: Respond Carefully: If the debt is statute-barred, you can inform the creditor in writing: “I believe this debt is statute-barred under the Limitation Act 1980. Please confirm you will not pursue further action.”

Step 6: Seek Advice: If unsure, contact Citizens Advice, StepChange, or a debt advice charity before taking action.

Avoiding Accidental Debt Acknowledgment

Accidental acknowledgment can restart limitation periods and undermine your legal position:

Don’t Sign Anything: Avoid signing letters, payment plans, or financial statements related to old debts without verifying their status first.

Be Careful with Written Communication: Emails and letters saying “I owe this but can’t pay” count as written acknowledgment. Instead, say “I’m requesting proof of this debt” without admitting liability.

Avoid Making Payments: Even small payments restart the limitation clock. Don’t pay anything until you’ve verified the debt’s status and decided it’s in your interest to do so.

Verbal Admissions Don’t Count: Phone conversations don’t restart limitation periods, but creditors may use them as evidence in other contexts. Be cautious about what you say.

Get Advice First: Before responding to collection attempts on old debts, consult a debt advice charity to understand your position and options.

Legal Protections for Debtors in the UK

UK law provides significant protections for debtors, particularly regarding collection practices and fair treatment.

FCA Regulations on Debt Collection Practices

The Financial Conduct Authority (FCA) regulates debt collection firms and creditors, requiring them to treat customers fairly and comply with strict conduct standards.

Key FCA Requirements:

• Forbearance and Due Consideration: Creditors must consider individual circumstances and offer appropriate solutions, including payment plans, payment holidays, or debt write-offs where appropriate.
• Clear Communication: Creditors must provide clear information about debts, including amounts owed, interest charges, and consequences of non-payment.
• No Misleading Tactics: Creditors cannot misrepresent legal positions, threaten action they cannot or will not take, or imply debts are enforceable when they’re statute-barred.
• Vulnerable Customer Protections: Creditors must identify and support vulnerable customers, including those with mental health issues, financial difficulties, or other challenges.

FCA Consumer Credit Sourcebook (CONC) sets out detailed rules for debt collection, with serious penalties for non-compliance.

Harassment and Unfair Treatment Protections

Debt collection harassment is illegal under multiple laws:

Protection from Harassment Act 1997: Makes it a criminal offense to pursue a course of conduct that amounts to harassment. This includes excessive contact, threatening behavior, or causing alarm or distress.

Administration of Justice Act 1970: Makes it a criminal offense to harass debtors with demands for payment that are calculated to subject them or their family to alarm, distress, or humiliation.

What Constitutes Harassment:

• Excessive contact (multiple calls per day, late-night calls)
• Threatening language or behavior
• Contacting employers, family, or neighbors about the debt
• Visiting your home uninvited or refusing to leave
• Misrepresenting legal positions or consequences

Your Rights: If you experience harassment, you can:

• Complain to the creditor’s compliance department
• Report the conduct to the FCA
• Contact the police if harassment is severe
• Seek legal advice about injunctions or other remedies

When to Seek Legal Advice or Debt Counseling

Professional advice is valuable when:

Debts Are Complex or Large: Multiple debts, large sums, or complicated legal situations benefit from expert guidance.

You’re Unsure About Limitation Periods: If you’re uncertain whether debts are statute-barred or how to respond to collection attempts, professional advice prevents costly mistakes.

Creditors Are Threatening Court Action: Legal advice helps you understand your options and whether defending claims is worthwhile.

You’re Experiencing Financial Hardship: Debt advice charities can negotiate with creditors, arrange payment plans, or explore debt solutions like Individual Voluntary Arrangements (IVAs) or Debt Relief Orders (DROs).

Free Resources:

• Citizens Advice: Free, impartial advice on debt and legal issues
• StepChange: Free debt advice charity offering personalized support
• National Debtline: Free, confidential debt advice
• Money Helper: Government-backed financial guidance service

Business Perspective: Recovering Debts Within Legal Timeframes

For businesses, understanding limitation periods is critical to protecting cash flow and maximizing recovery success.

Why Acting Early Maximizes Recovery Success

Debt recovery success rates decline sharply over time. Credit Management Research Centre data shows that debts over 90 days old have significantly lower recovery rates than those pursued within 30-60 days of default.

Key Factors:

• Debtor Circumstances Change: Debtors may become insolvent, move, or experience worsening financial situations, making recovery harder.
• Evidence Deteriorates: Documentation, records, and evidence become harder to locate as time passes.
• Limitation Deadlines Approach: Waiting too long eliminates legal enforcement options entirely.
• Relationship Preservation: Early, professional intervention is more likely to preserve business relationships than aggressive late-stage collection.

Best Practice: Implement structured credit control processes with clear escalation timelines—initial reminders at 7 days overdue, formal demands at 30 days, and professional collection or legal action at 60-90 days.

Professional Debt Collection vs. Internal Recovery

Businesses face a critical decision: pursue debts internally or engage professional debt collection agencies.

Internal Recovery Advantages:

• Lower cost (no agency fees)
• Direct customer relationship management
• Greater control over approach and messaging

Internal Recovery Challenges:

• Resource-intensive (staff time, systems, processes)
• Limited expertise in negotiation and legal escalation
• Potential damage to customer relationships if handled poorly
• Lower success rates on difficult or aged debts

Professional Collection Advantages:

• Specialist expertise in negotiation and recovery strategies
• Higher success rates, particularly on aged or disputed debts
• Regulatory compliance and legal knowledge
• Frees internal resources for core business activities
• Professional approach that can preserve relationships

When to Engage Professionals:

• Debts over 60-90 days old with no response to internal efforts
• Large-value debts where recovery justifies agency fees
• Debts requiring legal escalation or court action
• Situations where internal resources are stretched
• Cases involving complex disputes or debtor challenges

Fee Structures: Most agencies work on contingency (percentage of recovered amounts) or fixed fees. Transparent pricing and clear terms are essential—avoid agencies with hidden charges or aggressive tactics that could damage your reputation.

Legal Escalation: When to Consider Court Action

Court action should be considered when:

Debts Are Significant: Legal costs are justified by the debt value (typically £1,000+ for County Court claims).

Debtor Has Assets: Court judgments are only valuable if debtors have assets or income to enforce against.

Limitation Deadlines Approach: If the six-year limitation period is approaching and other recovery methods have failed, court action preserves enforcement rights.

Debtor Is Unresponsive: When debtors ignore all communication and negotiation attempts, court action may be the only option.

Evidence Is Strong: You have clear documentation proving the debt (contracts, invoices, delivery records, correspondence).

Process:

1. Pre-Action Protocol: Send a formal Letter Before Action giving the debtor a final opportunity to pay or negotiate.
2. Issue Court Claim: File a claim with the County Court (online via Money Claim Online for debts up to £100,000).
3. Serve Claim: The court serves the claim on the debtor, who has 14 days to respond.
4. Default Judgment: If the debtor doesn’t respond, you can request a default judgment.
5. Enforcement: With a judgment, you can use enforcement methods like bailiffs, attachment of earnings, or charging orders.

Costs: Court fees range from £35 (debts under £300) to £10,000 (debts over £200,000). You can usually recover these from the debtor if successful.

Maintaining Compliance While Protecting Cash Flow

Businesses must balance effective debt recovery with regulatory compliance and ethical practices:

FCA Compliance: If you’re regulated by the FCA or use regulated debt collection firms, ensure all practices comply with CONC rules on fair treatment, forbearance, and vulnerable customers.

Data Protection: Debt collection involves processing personal data. Ensure compliance with UK GDPR, including lawful bases for processing, data security, and debtor rights.

Ethical Practices: Aggressive or harassing collection tactics damage reputation and may breach legal protections. Professional, respectful approaches are more effective and legally compliant.

Transparent Communication: Clearly explain debts, amounts owed, interest charges, and consequences. Avoid misleading statements or threats you cannot or will not carry out.

Vulnerable Customer Policies: Identify and support customers experiencing financial difficulties, mental health issues, or other vulnerabilities. Offer appropriate solutions, including payment plans, payment holidays, or debt write-offs where justified.

Documentation: Maintain thorough records of all collection activity, including correspondence, phone calls, payment arrangements, and legal action. This protects you in disputes and demonstrates compliance.

Common Mistakes That Restart the Limitation Clock

Both debtors and creditors should understand actions that inadvertently restart limitation periods.

Making Small Payments on Old Debts

The most common mistake debtors make is paying small amounts on old debts without realizing this restarts the six-year limitation period.

Scenario: You defaulted on a credit card in 2017. By 2023, the debt is nearly statute-barred. A debt collector contacts you and suggests paying £20 as a “gesture of good faith.” You pay, thinking it will help. Instead, you’ve just given the creditor another six years to pursue legal action—until 2029.

Why This Happens: Debt collectors know that any payment restarts the clock. They may encourage small payments specifically to preserve enforcement rights, not because the payment meaningfully reduces the debt.

Protection: Before making any payment on an old debt, verify its age and limitation status. If the debt is close to becoming statute-barred, paying anything may not be in your interest.

Signing Acknowledgment Letters

Creditors often send letters asking you to confirm debt details or sign payment plan agreements. Signing these documents can restart the limitation period even if you don’t make a payment.

What to Watch For:

• Letters asking you to “confirm your account details”
• Payment plan agreements that include statements like “I acknowledge I owe £X”
• Financial statements or income/expenditure forms that list the debt
• Settlement offers requiring signed acceptance

Protection: Before signing anything related to old debts, read carefully and consider whether the document acknowledges the debt. If unsure, seek advice before signing.

Alternative Approach: If you want to negotiate but avoid acknowledgment, respond without admitting liability: “I’m willing to discuss this matter, but I require proof of the debt first and do not acknowledge any liability at this stage.”

Verbal Admissions and Their Legal Weight

Good news: verbal admissions don’t restart limitation periods. Phone conversations where you admit owing a debt have no legal effect on the limitation clock.

However: Creditors may use recorded calls as evidence in other contexts, such as:

• Proving you were aware of the debt
• Demonstrating your intentions regarding payment
• Supporting claims that you agreed to payment arrangements

Best Practice: Be cautious in phone conversations about old debts. You can discuss the debt without admitting liability by saying things like:

• “I need to verify this debt before discussing payment”
• “I’m requesting written proof of this debt”
• “I don’t recall this debt and need documentation”

Never Say: “Yes, I owe this but can’t pay right now” or “I know I owe it but I’m struggling financially.” These admissions, while not restarting the limitation period, can be used against you in other ways.

Conclusion

Understanding debt limitation periods empowers both debtors and creditors to navigate collection situations with clarity and confidence. The six-year rule under the Limitation Act 1980 provides critical protection for debtors while establishing clear timeframes for creditors to act. Once debts become statute-barred, legal enforcement options disappear, fundamentally shifting the balance of power.

For individuals managing personal debts, knowing your rights prevents costly mistakes like inadvertently restarting limitation periods through small payments or written acknowledgments. For businesses recovering outstanding invoices, acting within legal timeframes and engaging professional support when necessary maximizes recovery success while maintaining compliance and protecting valuable customer relationships.

Whether you’re assessing old debts or recovering unpaid accounts, professional guidance ensures you make informed decisions that protect your financial interests and legal position. Frontline Collections – London Office combines regulatory expertise, proven recovery strategies, and ethical practices to help businesses recover outstanding debts efficiently and compliantly—preserving cash flow while respecting legal boundaries and maintaining the professional relationships that drive long-term success.

Frequently Asked Questions

Can a debt collector chase me for a 10-year-old debt?

Debt collectors can contact you about 10-year-old debts, but they cannot take court action if the debt is statute-barred. Most unsecured debts become unenforceable after six years, so a 10-year-old debt is typically statute-barred unless you made payments or acknowledged it in writing during that time. Collectors can still ask for payment, but they cannot threaten legal action or imply the debt is legally enforceable. If contacted about very old debts, verify the limitation status and inform collectors in writing that the debt is statute-barred.

Does ignoring a debt make it go away after six years?

Ignoring a debt doesn’t automatically make it disappear, but if you make no payments and provide no written acknowledgment for six years, the debt becomes statute-barred and unenforceable through court action. However, the debt still technically exists—you still owe it—and it remains on your credit file for six years from the default date. Creditors can still contact you about statute-barred debts, though they cannot pursue legal enforcement. Ignoring debts is risky because creditors may obtain County Court Judgments before the limitation period expires, which extends enforcement rights for another six years.

What is the difference between statute-barred and written-off debt?

Statute-barred debt is debt where the limitation period has expired, making it unenforceable through court action, but the debt still legally exists. Written-off debt is debt the creditor has decided to stop pursuing and has removed from their active accounts, often for accounting or practical reasons. Written-off debts may still be legally enforceable if the limitation period hasn’t expired—creditors can sell them to debt buyers or resume collection efforts. Statute-barred status provides legal protection from court action; written-off status is an internal creditor decision that doesn’t necessarily affect your legal obligations.

Can a creditor take me to court after six years?

No, creditors cannot successfully take you to court after six years if the debt is statute-barred. If they issue court proceedings after the limitation period expires, you can defend the claim by providing evidence that the debt is statute-barred under the Limitation Act 1980. However, creditors can take you to court if you made payments or acknowledged the debt in writing within the six-year period, as these actions restart the limitation clock. Additionally, if the creditor obtained a County Court Judgment before the six-year period expired, they can enforce that judgment for six years from the judgment date, regardless of the original debt’s age.

How do I prove a debt is statute-barred?

To prove a debt is statute-barred, gather evidence showing that six years have passed since the later of: (1) the default date, (2) your last payment, or (3) your last written acknowledgment. Request documentation from the creditor showing the full payment history, default date, and any correspondence. Check your bank statements for any payments made after the default. If the creditor cannot provide evidence of payments or acknowledgments within the six-year period, the debt is likely statute-barred. If court proceedings are issued, you can file a defense stating the debt is statute-barred and providing evidence of the dates involved. The burden then shifts to the creditor to prove otherwise.

Will statute-barred debts affect my credit score?

Statute-barred debts remain on your credit file for six years from the default date, regardless of whether they become statute-barred before that time. The six-year credit reporting period is separate from the six-year limitation period for legal enforcement. Once six years pass from the default date, the debt is automatically removed from your credit file, which can improve your credit score. However, while the debt remains on your credit file, it can negatively impact your score and make it harder to obtain credit, even if it’s statute-barred and unenforceable. After removal, the debt no longer affects your credit score.

What should businesses do to avoid losing the right to recover debts?

Businesses should implement structured credit control processes with clear escalation timelines to avoid losing recovery rights. Act quickly when invoices become overdue—send reminders at 7 days, formal demands at 30 days, and consider professional collection or legal action at 60-90 days. Monitor limitation deadlines carefully, especially for larger debts, and initiate court proceedings before the six-year period expires if other recovery methods fail. Maintain thorough documentation of all debts, including contracts, invoices, delivery records, and correspondence. Consider engaging professional debt collection agencies like Frontline Collections – London Office for aged or difficult debts to maximize recovery success while maintaining compliance and preserving valuable customer relationships.