Statute Barred Debt: When You Don't Have to Pay
Understand the statute of limitations and protect yourself from old debts
Quick Answer: Most debts become unenforceable (statute barred) after 6 years of no contact, no payment, and no acknowledgment of the debt. After this period, creditors can't take you to court. If they do, you can defend yourself by claiming the debt is statute barred. This defense is powerful: courts almost always uphold it if evidence shows 6 years have passed.
What is Statute Barred?
Statute barred means a debt is too old to enforce. The law says creditors have a limited time to pursue you in court. After 6 years (the limitation period), they lose this right. The debt doesn't disappear—you can still pay if you want—but they can't force you through legal action.
This protection exists to prevent endless harassment over old debts and to give people a fresh start. However, the 6-year period only starts if there's been no recent contact, payment, or acknowledgment. A single payment or written agreement can restart the clock.
What the Law Says
Limitation Act 1980 Section 5–6
Establishes the 6-year limitation period for breach of contract and simple contract debts (credit cards, personal loans, overdrafts). After 6 years from the date of the breach or last payment, the creditor can't pursue you in court.
Consumer Credit Act 1974 Section 56–65
Protects consumers in credit agreements. If a debt is statute barred, lenders can't pursue it. Additionally, creditors must comply with FCA rules (CONC 7) when collecting debts; harassment during the limitation period is unlawful.
Civil Procedure Rules Part 26
When a creditor sues you, "statute barred" is a complete defense. You don't have to pay; the court will dismiss the claim if you prove the 6-year period has passed without acknowledged contact or payment.
When Does the Clock Start?
The 6-year period starts from the date of the last acknowledged contact or payment toward the debt. For a credit card debt, it's the date of the last payment or the date you last acknowledged owing the money in writing. For a personal loan, it's the maturity date (when the loan should have been repaid) if never paid, or the date of the last payment.
Key point: the clock resets if you make ANY payment (even £1) or write acknowledging the debt. This can restart the 6-year period, giving the creditor a fresh window to sue.
What Resets the Limitation Period
- Any payment toward the debt (even £1).
- A written statement acknowledging you owe the debt ("I will pay when I can").
- A court judgment (the clock restarts from the judgment date).
- A payment arrangement agreed in writing.
IMPORTANT: Don't pay a penny or write acknowledging the debt if it's approaching 6 years. This can reset the limitation period and give the creditor a fresh chance to pursue you.
Frequently Asked Questions
Will a statute barred debt appear on my credit file forever? ▼
No. Debts must be removed from your credit file after 6 years from the date they were first recorded, regardless of whether they're paid. If a debt remains on your file after 6 years, complain to the credit reference agency and demand removal.
Can I be taken to court for a statute barred debt? ▼
No. The creditor loses the right to sue after 6 years. If they do sue, you simply defend by saying "statute barred" and the claim will be dismissed. Don't ignore a claim thinking it's automatic; respond with your defense or get free help.
What if I signed a "promissory note" or loan agreement? ▼
Most consumer debts are still subject to the 6-year rule, even with a written agreement. Some specialist debts (like mortgages) have different rules. Check the agreement or consult an advisor to confirm, but the 6-year protection applies in most cases.
Can creditors sue after 6 years if they have a CCJ? ▼
If a CCJ was issued before 6 years passed, the clock can restart from the judgment date. However, if 6 years pass from the original debt (not the judgment), the creditor can't sue on the original debt—but they may try to enforce the old judgment, which is a separate issue.
What if a debt buyer tries to collect an old debt? ▼
Same rule applies. If the debt is statute barred, the debt buyer (who purchased it from the original creditor) also can't pursue you in court. The limitation period applies regardless of who owns the debt. Defend your case by citing statute barred.