The UK 6-Year Debt Rule: When Does Debt Become Statute-Barred?

In the United Kingdom, there is a legal time limit on how long a creditor has to take court action to recover most unsecured debts. This is commonly referred to as the "6-year debt rule." The rule does not make the debt disappear in England, Wales, or Northern Ireland — it removes the creditor's ability to enforce it through the courts. In Scotland, the position is fundamentally different: after the equivalent period expires, the debt is extinguished entirely, meaning it ceases to exist in law.

The limitation periods are set out in statute. In England, Wales, and Northern Ireland, the governing legislation is the Limitation Act 1980. In Scotland, the governing legislation is the Prescription and Limitation (Scotland) Act 1973, as amended by the Prescription (Scotland) Act 2018, which commenced in stages with major remaining reforms in force from 28 February 2025.

This article explains how these rules work, what time limits apply to different types of debt, and where the common points of confusion arise.

For most unsecured debts — such as credit cards, personal loans, store cards, catalogues, and overdrafts — the creditor has a limited window in which to begin court proceedings.

• In England, Wales, and Northern Ireland, the time limit is 6 years from the date the cause of action accrued. Once this period expires without court proceedings being issued, the debt is described as "statute-barred." The debt still technically exists, but the creditor can no longer obtain a County Court Judgment (CCJ) to enforce it.
• In Scotland, the time limit is 5 years for most unsecured debts. Once this period expires, the debt is not merely unenforceable — it is "extinguished," meaning the obligation ceases to exist entirely.

These periods can be restarted if the debtor makes a payment towards the debt or provides a written acknowledgment of it.

Not all debts follow these standard periods. Tax debts owed to HMRC have no limitation period. Mortgage shortfall debts, council tax, and certain benefit overpayments each have their own specific rules, which are set out in detail below.

The limitation system operates by placing a time restriction on a creditor's right to bring a court claim, rather than by cancelling the debt itself (except in Scotland, where the debt is cancelled).

The starting point: when does the clock begin?

The limitation period begins when the "cause of action" accrues. For simple contract debts, this is typically the point at which the debtor defaults and the creditor becomes entitled to take court action. For debts regulated under the Consumer Credit Act 1974, creditors must issue a default notice before taking certain enforcement actions. For claims for the accelerated balance under a regulated agreement, Doyle v PRA Group Ltd (2019) indicates that limitation runs from the expiry of the default notice period (normally 14 days after issue). However, instalment arrears can accrue earlier, as each missed contractual payment may have its own cause of action.

The exact date from which the limitation period starts can vary depending on the terms of the specific contract and the type of debt involved.

The clock runs continuously

Once started, the 6-year period (or 5-year period in Scotland) runs continuously. The creditor must file a claim form with the court before the period expires. "Issuing" proceedings means the claim form is filed with the court — not when it is served on the debtor.

Resetting the clock

Two events can restart the limitation period:

1. Written acknowledgment. Under Section 29(5) and Section 30(1) of the Limitation Act 1980, a written acknowledgment of the debt that is signed by the debtor resets the limitation period. The acknowledgment must be in writing and signed by the person making it. Email may amount to a written, signed acknowledgment depending on the circumstances (for example, where it includes a typed name or signature block).
2. Part payment. Any payment made towards the debt also restarts the limitation period. The new period runs from the date of the payment. Where a debt is jointly held, a payment by either party resets the clock for both parties.

These resets can occur repeatedly. However, once a debt has become statute-barred — meaning the limitation period has already expired — it cannot be revived by a subsequent acknowledgment or payment. This is confirmed by Section 29(7) of the Limitation Act 1980.

What "statute-barred" means in practice

In England, Wales, and Northern Ireland, a statute-barred debt has not been written off or forgiven. The obligation still exists in law. However, the creditor has lost the right to bring a court claim to enforce it. In Scotland, when the 5-year prescriptive period expires, the obligation is extinguished under Section 6(1) of the Prescription and Limitation (Scotland) Act 1973. The debt no longer exists, and no obligation to pay remains.

Standard limitation periods by debt type

• Simple contract debts (England, Wales, Northern Ireland): 6 years. This applies to credit cards, personal loans, store cards, catalogues, overdrafts, utility arrears, and rent arrears. The period is set by Section 5 of the Limitation Act 1980.
• Simple contract debts (Scotland): 5 years. This applies to most unsecured credit debts and contract debts. The period is set by Section 6 of the Prescription and Limitation (Scotland) Act 1973. Schedule 1 to the 1973 Act defines the obligations that are subject to this 5-year prescription, including obligations to pay sums of money under contract.

Mortgage shortfall debts (England, Wales, Northern Ireland)

Where a property has been repossessed and sold, the mortgage lender may pursue any remaining shortfall. The limitation period for the capital element is 12 years, as set by Section 20(1) of the Limitation Act 1980. This was confirmed by the House of Lords in West Bromwich Building Society v Wilkinson [2005]. The limitation period for the interest element is 6 years, under Section 20(5). In practice, most shortfalls are capital-only because sale proceeds are typically applied to interest first.

FCA rules under the Mortgages and Home Finance: Conduct of Business sourcebook (MCOB) require mortgage lenders to notify borrowers of any shortfall recovery within 6 years of the property sale. Failure to do so may give grounds for a complaint to the Financial Ombudsman Service.

Council tax

In England and Wales, no application for a liability order may be made after 6 years beginning with the day the sum became due, under Regulation 34(3) of the Council Tax (Administration and Enforcement) Regulations 1992. Once a liability order has been obtained, Bolsover DC v Ashfield Nominees [2010] EWCA Civ 1129 supports that liability-order enforcement is not subject to a 6-year limit.

In Scotland, council tax has a 20-year limitation period, not 5 years. Council tax is explicitly excluded from the 5-year prescription and falls under the 20-year long-stop provision, as set out in Schedule 1, paragraph 1(fd) of the Prescription and Limitation (Scotland) Act 1973.

Benefit overpayments

In England, Wales, and Northern Ireland, the limitation period for court action to recover benefit overpayments is 6 years, under Section 9(1) of the Limitation Act 1980. However, the DWP can often recover overpayments by statutory deduction from ongoing benefits under social security legislation, even where a court claim would be statute-barred.

In Scotland, DWP benefit overpayments and tax credits have a 20-year limitation period, as they are explicitly excluded from the 5-year prescription under Schedule 1, paragraph 1(fb) of the Prescription and Limitation (Scotland) Act 1973.

HMRC tax debts

Debts for income tax, VAT, and capital gains tax owed to HM Revenue & Customs are not subject to Limitation Act time limits. Section 37(2) of the Limitation Act 1980 explicitly excludes "proceedings for recovery of tax or duty and interest on tax or duty" from its limitation periods, meaning HMRC can pursue these debts indefinitely.

National Insurance contributions are not classified as tax. They are subject to the standard 6-year limitation period under Section 9(1) of the Limitation Act 1980. HMRC's internal manual (DMBM595080) confirms this position.

Personal injury claims

For reference, personal injury claims are subject to a 3-year limitation period under Section 11 of the Limitation Act 1980.

Enforcement of County Court Judgments

Where a CCJ has already been obtained, the creditor generally has 6 years in which to take enforcement action without requiring further court permission. After 6 years, enforcement generally requires court permission under CPR 83.2. Charging orders and insolvency proceedings have no time limit, as established in Lowsley v Forbes [1999] and Ezekiel v Orakpo.

Scotland's 20-year long-stop

Under Section 7 of the Prescription and Limitation (Scotland) Act 1973, there is an absolute 20-year time limit for all obligations not otherwise exempted. From 28 February 2025, this 20-year period can no longer be interrupted by a relevant claim or acknowledgment, making it a true "long-stop" provision.

"Statute-barred" does not mean the debt is cancelled (except in Scotland)

In England, Wales, and Northern Ireland, the debt continues to exist after the limitation period expires. The creditor simply loses the right to pursue it through the courts. In Scotland, by contrast, the debt is extinguished — it no longer exists at all.

The clock can restart

Many people are unaware that making a payment or providing a written acknowledgment of a debt resets the limitation period entirely. A single small payment or an email acknowledging the debt can restart the full 6-year (or 5-year) period. This applies even to very old debts, provided the limitation period has not yet fully expired.

Once truly statute-barred, it cannot be revived

If the full limitation period has already expired, a subsequent payment or acknowledgment does not restart the clock. This is set out in Section 29(7) of the Limitation Act 1980.

"Issuing" proceedings means filing, not serving

The creditor meets the time limit by filing the claim form with the court, not by ensuring the debtor receives it. A claim filed on the last day of the limitation period is valid even if the debtor is not served until later.

Council tax and tax debts do not follow the 6-year rule

HMRC tax debts have no limitation period at all. Council tax in Scotland is subject to a 20-year period. And once a council tax liability order is obtained in England and Wales, there is no time limit on enforcement.

Benefit overpayments can be recovered without court action

Even where a court claim for benefit overpayments would be statute-barred, the DWP can often recover by statutory deduction from ongoing benefits under social security legislation.

• Scotland: child maintenance. Child maintenance obligations under the Child Support Act 1991 have no time limit in Scotland. They are explicitly excluded from the 5-year prescription under Schedule 1, paragraph 1(fc) of the Prescription and Limitation (Scotland) Act 1973.
• Scotland: standstill agreements. Under Section 13A of the Prescription and Limitation (Scotland) Act 1973, inserted by the 2018 Act, parties may agree to extend the 5-year prescriptive period by up to 1 year through a standstill agreement. This can only be agreed after the prescriptive period has commenced and before it would expire, and can only be done once per obligation.
• Scotland: the discoverability test. The way the 5-year prescriptive period begins in Scotland was amended for certain obligations, with changes commencing from 1 June 2022 and further reforms from 28 February 2025. Under Section 5 of the Prescription (Scotland) Act 2018, the 5-year period now begins only when the pursuer is aware (or could with reasonable diligence be aware) of three things: that loss has occurred, that it was caused by another person's act or omission, and the identity of that person.
• FCA rules on statute-barred debts. For debts owed to firms regulated by the Financial Conduct Authority, CONC 7.15.4 prohibits firms from attempting to recover statute-barred debts where no contact was made during the limitation period. Furthermore, CONC 7.15.8 states that a firm must not continue to demand payment from a customer after the customer has stated that they will not be paying the debt because it is statute-barred.
• Suspension of the limitation period. The limitation period may be suspended in certain circumstances. These include where the debtor is under a legal disability, or where fraud or concealment has prevented the creditor from bringing a claim.
• "Payable on demand" mortgages. Whether mortgages described as "payable on demand" can become statute-barred is a matter of conflicting interpretation. Some sources suggest these mortgages are difficult to time-bar because the cause of action only accrues when a demand is made; others suggest the 12-year period applies from the date of default regardless. This area involves significant legal complexity and published guidance suggests specialist advice may be needed.

The limitation system creates a defined window within which a creditor can take court action. Once that window closes, the position depends on where in the UK the debtor is located and what type of debt is involved.

For most unsecured debts in England, Wales, and Northern Ireland, the 6-year period means that if no court proceedings have been issued and no payments made or written acknowledgments given within that time, the creditor loses the ability to obtain a court judgment. The debt itself remains on record but cannot be enforced through the courts.

In Scotland, the position is more definitive. After 5 years without a relevant claim or acknowledgment, the obligation is extinguished and ceases to exist.

Certain debts sit outside these standard periods entirely. HMRC tax debts can be pursued without any time limit. Council tax in Scotland is subject to a 20-year period. Mortgage shortfall capital has a 12-year period. And benefit overpayments can be recovered through administrative deductions even where a court claim would be time-barred.

The clock-resetting mechanism is a particularly significant feature of the system. Any payment — regardless of how small — or any written acknowledgment of the debt restarts the full limitation period from that date. This effect only applies while the limitation period is still running; once it has fully expired, no action by the debtor can restart it.

• England/Wales/NI: 6 years to start court action. After that, debt is "statute-barred" (unenforceable in court) but still exists.
• Scotland: 5 years. After that, debt is "extinguished" (gone forever).
• Clock Reset: Payment or written acknowledgment resets the 6-year (or 5-year) clock if debt isn't already barred.
• Tax Exception: HMRC income tax/VAT debts NEVER become statute-barred.
• Mortgage Shortfalls: Capital can be chased for 12 years.
• Benefit Overpayments: Can be deducted from future benefits even if statute-barred for court action.