Have you ever received a letter about an old debt and wondered whether you still have to pay it?

Debt collection can feel overwhelming, especially if you are being contacted about money you don’t even remember owing. Many people are unaware that debts have a legal time limit for collection, meaning creditors cannot chase them forever.

Understanding your rights and responsibilities is key to dealing with debt confidently. Whether you’ve fallen behind on payments, are dealing with an unexpected creditor letter, or just want to know where you stand, this guide will explain how long creditors can legally pursue you in the UK.

Debt Collection in the UK: The Time Limits You Need to Know

In the UK, most debts have a six-year limitation period under the Limitation Act 1980. This means creditors must take court action within six years of your last payment or written acknowledgment of the debt. If they fail to do so, the debt may become statute barred—meaning they can no longer take legal action to recover it.

However, this doesn’t mean the debt disappears. Creditors can still contact you and ask for payment, but they cannot enforce repayment through the courts.

What Types of Debts Have a Time Limit?

Most unsecured debts fall under the six-year limitation period, including:

• Credit cards
• Personal loans
• Overdrafts
• Utility bills (gas, electricity, and water)
• Catalogue debts
• Store cards

For mortgage shortfalls, different time limits apply:

• Six years for interest payments
• Twelve years for the main loan amount

Some debts never become statute barred. These include:

• HMRC debts (income tax, VAT, and National Insurance contributions)
• Council tax arrears (which can be enforced through liability orders)
• Benefit overpayments (which can be recovered even after six years)

If you have a debt that falls outside the limitation period, you might not have to pay—but you need to be careful about how you handle creditor contact.

How to Tell If Your Debt Is Statute Barred

A debt may be statute barred if:

✔️ You have not made any payments towards it in six years
✔️ You have not acknowledged the debt in writing
✔️ The creditor has not taken legal action

Even if a debt is statute barred, creditors can still send letters and make calls, but they cannot take court action to force you to pay.

If a creditor tries to take you to court for a statute-barred debt, you must respond to the court papers stating that the debt is statute barred. If you do not, the court may issue a County Court Judgment (CCJ), allowing the creditor to chase the debt indefinitely.

What Happens If a Creditor Takes Legal Action?

If a creditor attempts to take you to court before the six-year period expires, you will receive court papers. This is a formal warning that they are taking legal steps to recover the debt.

If you receive a court claim, you have the right to:

✔️ Dispute the claim if the debt is statute barred
✔️ Negotiate a repayment plan if you owe the debt but cannot pay in full
✔️ Seek free debt advice to explore your options

If a County Court Judgment (CCJ) is issued, it allows creditors to enforce payment through:

• Wage deductions (attachment of earnings order)
• Bailiff visits
• Bank account freezing (third-party debt order)

Ignoring a CCJ can lead to serious financial consequences, so it’s important to act quickly if you receive court papers.

What If Creditors Keep Contacting You?

If your debt is statute barred, you can send a letter requesting that creditors stop contacting you. A simple statement such as “I do not admit any liability for your claim” should be enough.

⚠️ Avoid saying that you are unsure of the debt—this could restart the six-year limitation period.

For added security, send the letter by recorded delivery to provide proof. If creditors continue to contact you after this, you can complain to the Financial Ombudsman Service.

Can You Be Sent to Prison for Debt?

For most debts, no—you cannot go to prison for failing to repay debts such as credit cards, loans, or overdrafts.

However, exceptions exist:

• Unpaid criminal fines
• Business rates
• Child maintenance arrears

In these cases, persistent non-payment can result in court action, and in extreme situations, imprisonment.

Should You Wait for a Debt to Become Statute Barred?

Hoping that a debt will expire isn’t always the best plan. While you may avoid legal action, creditors can still:

• Damage your credit file (missed payments and defaults remain for six years)
• Sell the debt to collection agencies, leading to increased pressure
• Issue a CCJ before the limitation period expires, making the debt enforceable for much longer

Instead of waiting, consider:

✅ Negotiating with creditors – Many will accept reduced payments
✅ Checking for Payment Protection Insurance (PPI) – You may already have cover
✅ Seeking professional debt advice – Free help is available from charities like StepChange and MoneyHelper

Taking control early can help reduce stress and prevent long-term financial problems.

Alternatives to Ignoring Debt

If repaying your debts seems unmanageable, you may be eligible for:

Debt Management Plan (DMP)

An informal agreement to reduce monthly payments to an affordable level.

Debt Relief Order (DRO)

Freezes debts for 12 months. If your situation doesn’t improve, the debt is written off.

Individual Voluntary Arrangement (IVA)

A legally binding agreement to repay a portion of your debt over five years.

Bankruptcy

A last-resort option that clears most debts, but may affect your assets.

Seeking professional advice can help you choose the right solution.

What Happens When the Limitation Period Ends?

When a debt reaches the limitation period, it becomes statute barred, meaning:

• The creditor cannot take legal action
• You do not have to pay
• The debt remains on your credit file for six years from default

⚠️ In Scotland, statute-barred debts are legally considered repaid, and creditors must stop collection attempts.

Final Thoughts

Understanding debt time limits can help you make informed decisions and avoid unnecessary stress.

If you receive letters about an old debt, check whether it is statute barred before responding. If you are unsure, seek professional debt advice.

At We Buy Any Debts, we help people take back control of their finances. Whether your debt is old or new, our team can provide clear, straightforward advice.

Need help? Contact us today to explore your options.