Glossary · UK
What is Statute-Barred Debt?
A debt that can no longer be enforced through the courts because the legal time limit for taking action has expired under the Limitation Act 1980.
Full Definition
In England and Wales, the Limitation Act 1980 imposes time limits on how long a creditor can take legal action to recover a debt. For most unsecured debts -- including credit cards, personal loans, overdrafts and utility bills -- the limitation period is six years from the date the debt became due or from the last written acknowledgement of the debt. For mortgage debts and loans secured on property, the limitation period is 12 years. Once these periods expire without court action, the debt is said to be statute-barred: the creditor cannot obtain a court judgment to enforce repayment. Importantly, the debt itself does not disappear -- it still legally exists -- but the creditor cannot sue to recover it. The limitation clock can be restarted if the debtor makes a written acknowledgement that the debt exists, or if they make even a partial payment. Debt collectors may still contact you about a statute-barred debt, but they cannot threaten court action. If a creditor does issue court proceedings for a statute-barred debt, the debtor should raise the limitation period as a defence. Scotland operates different rules under the Prescription and Limitation (Scotland) Act 1973, with a shorter five-year prescriptive period for most debts, after which the debt is extinguished entirely (not merely unenforceable).