The limitation period for collection of debts is 6 years from the date the debt became payable and after that time they may become statute barred. This means that the debt is no longer recoverable, including by legal action in the courts.
However, it is always worth checking that your debt is actually statute barred. If any of the following apply, then it might not be:
- Have any payments been made towards the debt in the last 6 years?
- Has the debtor contacted you to find out the balance owing or to acknowledge the debt in any way in writing?
- Has Court action been taken already?
Whilst the debt might not be recoverable through the Court, we can still send the debtor a letter to try to collect these amounts owed to you on your behalf. Whilst legal proceedings may not be pursued, there is no harm in sending a letter and you may even get back more than what you were owed in the first place!
Further, if you have any business-to-business debts that were paid late – did you claim Late Payment Compensation, Interest and Recovery under the Late Payment of Commercial Debts (Interest) Act 1998? If the answer is no, let us have the details and we can seek to recover the compensation that you are owed.
Speak to our expert in Debt Recovery, Laura Charles on 01283 526210 or via email onlaura.charles@elselaw.co.uk for more information on how we can help you.
FAQs
The statute of limitations on a judgment is 20 years – not six. Further, a creditor can renew the judgment.
Can creditors come after you after 6 years? ›
For most debts, the time limit is 6 years since you last wrote to them or made a payment. The time limit is longer for mortgage debts. If your home is repossessed and you still owe money on your mortgage, the time limit is 6 years for the interest on the mortgage and 12 years on the main amount.
Should I pay a debt that is 6 years old? ›
The Legal Side: Statutes of Limitations
This time period ranges from 3-6 years usually. According to the CFPB, once the statute of limitations expires, a collector legally can't sue you for the debt. That doesn't mean you don't technically still owe the money though. The debt doesn't just vanish or become invalid.
How long before a debt is uncollectible? ›
Can a 10 year old debt still be collected? ›
Can a Debt Collector Collect After 10 Years? In most cases, the statute of limitations for a debt will have passed after 10 years. This means a debt collector may still attempt to pursue it (and you technically do still owe it), but they can't typically take legal action against you.
Can a debt collector restart the clock on my old debt? ›
Keep in mind that making a partial payment or acknowledging you owe an old debt, even after the statute of limitations expired, may restart the time period. It may also be affected by terms in the contract with the creditor or if you moved to a state where the laws differ.
Can a debt collector bother you after 7 years? ›
Debt collectors may not be able to sue you to collect on old (time-barred) debts, but they may still try to collect on those debts. In California, there is generally a four-year limit for filing a lawsuit to collect a debt based on a written agreement.
What is the 11 word phrase to stop debt collectors? ›
If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. As soon as you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to stop the harassment, call us for a free consultation about what you can do to resolve your debt problems for good.
What happens after 7 years of not paying debt? ›
The debt will likely fall off of your credit report after seven years. In some states, the statute of limitations could last longer, so make a note of the start date as soon as you can.
What happens if you never answer debt collectors? ›
Ignoring Debt Collectors Can Lead to a Debt Collection Lawsuit. Worst-case scenario: They can file a lawsuit against you. Debt buyers may also sue you. Once a creditor or debt collection agency files a lawsuit, it's even riskier to continue ignoring it.
HMRC can take you to court for these debts even if they are very old. Debts where the creditor already started action to obtain a decree. The debt cannot become prescribed.
Can you collect 20 year old debt? ›
The statute of limitations is a law that limits how long debt collectors can legally sue consumers for unpaid debt. The statute of limitations on debt varies by state and type of debt, ranging from three years to as long as 20 years.
Should I settle a 7 year old debt? ›
Although the debt won't be factored into your credit score after seven years, there are still consequences. When you stop paying your debt, the creditor will start charging late fees and interest will continue to accumulate, increasing the balance you owe.
Is a default still showing after 6 years? ›
How long does a default stay on your credit file? A default will stay on your credit file for six years from the date of default, regardless of whether you pay off the debt. But the good news is that once your default is removed, the lender won't be able to re-register it, even if you still owe them money.
What happens to collections after 6 years? ›
You still owe a debt, even after the statute of limitations has expired. Once a debt has expired, a creditor has no legal recourse to collect it. Expired debt can stay on your credit report for up to seven years. Debt collectors will attempt to re-age your debt so they have more time to collect.
Can a creditor report after 7 years? ›
Under the Fair Credit Reporting Act, in most cases, debts can only appear on your credit report for seven years. After that period is up, the debt can no longer be reported. Also, if you've had a delinquent account on your credit report, creditors can hold the debt against you.
What happens to your credit after 6 years? ›
An account in default will show for 6 years from the date it defaulted, after which it will no longer appear on your credit report. Electoral Register history will be visible to organisations performing a search against your credit report indefinitely as this information is used to help identify who you are.
