What happens after a debt is statute barred?
The people you owe can no longer:
A debt can still appear on your credit file in some cases.
This means:
- Lenders can see it
- It may be harder to get future credit
For debts covered by the Financial Conduct Authority (FCA):
These are consumer debts, like:
- Credit or store cards
- Payday loans
- Personal loans
- Overdrafts
- Catalogues
The people you owe cannot do much.
- They cannot chase you to pay more if you make a payment
- The debt is now written off in Scotland
For other debts:
For debts not regulated by the FCA:
- The debt still exists by law
- The people you owe could contact you for payment
England, Wales or Northern Ireland
Money can sometimes be taken from your wages or benefits without going to court.
This mainly applies to:
- DWP or local authority benefit overpayments
- HMRC tax credit overpayments
They can use a direct earnings attachment (DEA) to take this money from you.
Scotland:
The people you owe cannot do anything.
The debt no longer exists by law.
Ask for your money back if you made recent payments to this debt.
What should I do if my debt is statute-barred or prescribed?
This depends on whether the limitation period has definitely passed.
If you know the limitation period has passed
The people you owe are not contacting you
You do not need to do anything.
The people you owe are still contacting you
Write to them and:
- Explain that you will not be paying anything to the debt
- Ask them to stop contacting you
- Tell them to send proof that you owe them money
Use our statute-barred template letter to ask creditors to stop contacting you.
If you are not sure the limitation has passed
Do what you can to find out.
Check payments you have made to a debt by:
- Getting a copy of your credit file
- Looking through old bank statements
- Thinking of something that happened around the time you might have last paid it. Like:
- Moving home
- A new baby
- An emergency cost
Contact the creditor if you still cannot remember:
- When you last paid the debt or
- When you last accepted the debt as yours
Tell them:
- You think the debt is statute-barred or prescribed
- Ask them to send proof it is not
- Start paying if they have proof
Creditors can start court action any time if you do not contact them.
Ignoring a debt risks you getting a:
- CCJ
- Decree
- Money judgment
You may still want to pay a debt after the limitation period has passed.
You can do this, but it may not be best if you still have other debts to pay.
Can the people I owe start court action after the limitation period has passed?
They are not allowed to do this but they sometimes try.
Tell the court the debt is statute barred or prescribed.
They should cancel the case if you can prove this time has passed.
If you get court paperwork for a statute-barred or prescribed debt:
- It is very important to complete and return the forms
- You will get a court order if you do not
- You may be able to get this cancelled later
- This can be difficult
- There may extra court fees
When you return the court forms showing the limitation period has passed:
- It is up to the creditor to prove it has not
If they can prove it has not passed:
- You will get a court order to pay the debt
If they cannot:
- The court should dismiss their claim
- You will not get a court order for payment
