Most debts have a time limit for court action. In England and Wales, the Limitation Act 1980 sets a six-year period for actions founded on simple contract, and in Scotland the Prescription and Limitation (Scotland) Act 1973 extinguishes many obligations after five years. Northern Ireland has its own limitation law, which is not covered here. Citizens Advice’s advice on time limits is written for England.
The basic rule in England and Wales
Section 5 of the Limitation Act 1980, which the legislation marks as applying in England and Wales, provides that an action founded on simple contract shall not be brought after six years from the date the cause of action accrued. Citizens Advice explains the practical effect for most debts as a six-year time limit measured from when the borrower last wrote to the creditor or made a payment. Once the limit has passed the debt may be “statute barred”, meaning the borrower does not have to pay it, provided nothing has restarted the clock and no court claim has been made.
What restarts the clock
Section 29 of the 1980 Act provides that where a right of action to recover a debt has accrued and the person liable acknowledges the claim or makes any payment in respect of it, the right is treated as accruing on the date of the acknowledgment or payment. A current period can be repeatedly extended, but a right of action already barred by the Act is not revived by a later acknowledgment or payment. Section 30 says an acknowledgment must be in writing and signed to be effective under section 29.
Citizens Advice warns in practical terms not to contact a creditor in writing, including by text, email or online chat, and not to make any payment, even a small one or a payment made by someone else on the borrower’s behalf, if the limit might have ended or might end soon, because doing so could look like agreeing the debt is owed and could reset the time limit for another six years. Checking details is possible by phone. For joint debts, Citizens Advice says a letter from one debtor resets the limit only for that person, but a payment by either resets it for both.
If a creditor keeps chasing
Where the debt is statute barred, Citizens Advice says a borrower can write to the creditor to stop it contacting them, including a statement such as “I don’t admit any liability for your claim”, and that the letter should not say the amount is wrong or that the borrower is unsure what is owed. If the creditor still insists the debt is not barred, it would have to go to court to prove it, and a borrower who receives court papers should respond by the deadline and raise limitation as a defence. Citizens Advice adds that once a court order exists it is too late to claim the debt is statute barred, although if the debt was already barred when the order was obtained the order might be changed. A judgment stays on a credit file for six years. Continued contact about a barred debt can be complained about to the creditor and then the Financial Ombudsman Service.
Breathing space and mortgage debt
Citizens Advice notes that where a borrower is in a breathing space, the time limit is automatically extended to end eight weeks after the breathing space ends. It also says the limit is longer for mortgage debts after repossession: six years for interest and 12 years for the main amount.
Scotland
Section 6 of the Prescription and Limitation (Scotland) Act 1973 extinguishes an obligation to which it applies if it has subsisted for a continuous period of five years without any relevant claim having been made and without the obligation having been relevantly acknowledged. That differs from the English position: in Scotland the obligation is extinguished, rather than a court action being barred, and the period is five years. Periods during which the creditor failed to claim because of the debtor’s fraud or an error induced by the debtor’s words or conduct are not counted. A Scottish debtor should take Scottish advice.
FAQs
Does a debt disappear after six years in England and Wales?
Not automatically. The debt may become statute barred, meaning the creditor cannot take court action, but a written acknowledgment or a payment can restart the limit, and a court claim made in time changes the position.
Will a small payment restart the time limit?
Yes, it can. Section 29 treats any payment in respect of the debt as restarting the period, and Citizens Advice warns that even small payments can reset the time limit.
Can I just ignore court papers about an old debt?
No. Citizens Advice says to respond by the deadline and raise the time limit in the defence; if the case is undefended the court will make a judgment.
Bottom line
Limitation is a defence to court action, not a wipe-out of what is owed. In England and Wales the usual limit is six years, restarted by a signed written acknowledgment or a payment; in Scotland a five-year prescription can extinguish the obligation. Anyone with an old debt should get advice before writing or paying anything. This is general information, not legal advice.
Sources
- legislation.gov.uk, “Limitation Act 1980, section 5: Time limit for actions founded on simple contract”
- legislation.gov.uk, “Limitation Act 1980, section 29: Fresh accrual of action on acknowledgment or part payment”
- legislation.gov.uk, “Limitation Act 1980, section 30: Formal provisions as to acknowledgments and part payments”
- legislation.gov.uk, “Prescription and Limitation (Scotland) Act 1973, section 6: Extinction of obligations by prescriptive periods of five years”
- Citizens Advice, “Check if you have to pay a debt”
- Citizens Advice, “If your debt is statute barred”