Debt over 10 years old in the UK - Can You Be Chased? Laws

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Are you wondering if you have to pay a debt that is over 10 years old? You’ve come to the right place for answers! Every month, over 170,000 people visit for guidance on debt issues.

This article will help you understand:

What it means when a debt is over 10 years old.
If you can still be chased for this debt.
What to do if you are unsure about an old debt.
How to deal with debts you’re not responsible for.
How to get free and impartial debt advice.

A study by Citizens Advice found evidence of poor practices by debt collectors in the UK, including the collection of very old debt.¹ So, it’s understandable to be concerned about your debt.

Don’t worry; you’re not alone! We’re here to help you find ways to deal with it.

Paying your debts over ten years old

While we all should pay the debts we make, there are some specific pieces of legislation in place that might mean we don’t have to pay.

As you can imagine, there are different rules and regulations surrounding debts and debt collectors, and it can be tricky to keep tabs on.

Most of the time, you’ll be required to repay the debt you owe, and the sooner you do this, the better.

There are, however, a few different circumstances that might mean you don’t have to pay the debt at all.

It is important to remember that defaulted debts will remain on your credit report for six years. This credit score impact will make it harder to obtain credit.

Debts over ten years old also come into play, so read on to find out what to do.

Debts you’re not responsible for

Certain rules surrounding debts might mean you do not have to pay up.

For instance, if there was a problem when you signed the agreement, like if you might have been pressured into signing it or the agreement itself wasn’t clear, you may not have to pay the debt if you can prove that this occurred.

Similarly, you won’t have to pay if the creditor didn’t check if you could afford the repayments when you signed the agreement.

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‘Statute-barred’ – Debts over six years old

If a creditor takes too long to recover the debt you owe and you do not make any admission or payments of the debt, the debt becomes what’s known as statute-barred.

Normally, this is if your debt is over six years old. This means that it can no longer be recovered through court action.

The debt is written off under the UK debt statute of limitations; however, it still exists technically.

For a debt to become statute-barred, it takes a bit of time. So if you have a debt over ten years old, it may be statute-barred.

There are, however, certain rules surrounding this too.

» TAKE ACTION NOW: Fill out the short debt form

Can I be chased for debt after ten years?

If you know for certain that your debt is statute-barred, then it means that your debt collector can no longer take you to court and force you to pay it.

Additionally, the FCA has stated that they think it is “unfair” for debt collectors to continue to chase you for debt and undertake debt enforcement action once it is statute-barred under the Limitation Act 1980.

So in most circumstances, if the debt can be shown to be statute-barred, your debt collector will no longer contact you about it, and you can consider it a debt write-off.

There are caveats to this.

For example, if you owe debts to the DWP or HMRC, they can deduct money directly from your wages, regardless of whether the debt is statute-barred. This is called a direct earnings attachment.

A County Court Judgement (CCJ) can also be chased.

A CCJ can be enforced for up to six years without permission from the court. If the creditor wants to enforce the judgment after this period, they must get permission from the court.

Thousands have already tackled their debt

Every day our partners, The Debt Advice Service, help people find out whether they can lower their repayments and finally tackle or write off some of their debt.

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Where can you get free and impartial debt advice?

The following debt advice services can give you more information on debt solutions, such as a debt management plan (DMP), Individual Voluntary Arrangement (IVA), debt relief order and more.

Organisation	Website	Phone number
Stepchange	http://www.stepchange.org	0800 138 1111
National Debtline	http://www.nationaldebtline.org	0808 808 4000
Citizens Advice	http://www.citizensadvice.org.uk	England: 0800 144 8848 Wales: 0800 702 2020

FAQs

Here, we’ll go into detailed responses to some of the more commonly asked questions about debts over ten years old.

When does a debt become statute-barred?

6 years. When a creditor takes too long to either contact you with regards to repaying the debt, or take court action to get the debt repaid, the debt becomes ‘unenforceable’, or statute-barred. It still exists, but the law (the statute) is used to prevent (or bar) the original creditor from taking out a court order to get it repaid. They may be able to take other action, depending on the debt. If you have a debt over 10 years old, you should check to see if it is a debt that can be statute-barred. Even if your debt has been statute-barred, it could stay on your credit reference file, which will make it harder for you to get further credit.

How long does it take for a debt to expire?

For most types of debt in England, Wales and Northern Ireland, the time frame for a debt is six years. There are stringent laws set out which dictate the period in which the creditor has to begin court action. This time frame, or limitation period, varies according to the type of debt. The debts that this limitation period covers are most of the common debt types, such as utility debts, council tax debts, credit card debts and overdrafts, to name a few. These simple contract debts, as they are known, fall under this ‘Limitation Act’.

What has to happen for a debt to become statute-barred?

Once the limitation period is running, these contract debts will become statute-barred if:

the creditor has not started a county court claim for the debt,
if you haven’t made a payment towards the debt in the last 6 years,
or you have not written to the creditor admitting you owe the debt during the last six years.

There are a few exceptions to this rule, so if your debt that is over 10 years old isn’t one of the debts listed, you may still have to pay up.

What kind of debts have an extended limitation period?

There are a few exceptions of debts that have an extended limitation period. Not all types of debt fall under the 6-year ruling, so it’s important to know what your debt is in regards of if you have a debt over 10 years old. The exceptions to the 6-year rule include:

Mortgage shortfalls – these have a longer limitation period of 12 years, with an interest limitation of 6 years
Personal injury claims – these have a much shorter limitation period, of only 3 years
Income tax, VAT and HMRC debts – these types of debt don’t have a limitation period, so HMRC could take you to court for your debt that is over 10 years old
Court Judgment – if the creditor has already started to get a court order before the limitation period is over, the debt can never become statute-barred

What can a creditor do after the limitation period is over?

If a debt has become statute-barred, it can’t be restarted. The Financial Conduct Authority (FCA) in fact have declared that it is unfair for a creditor to continue to ask you to pay a statute-barred debt once you’ve told them you don’t intend to pay it. With debts regulated by the FCA, this means that once you have proved the limitation period has passed and confirmed you won’t be paying the debt, the creditor should stop contacting you. Legally though, they’re not obliged to stop contacting you, so if you have a debt over 10 years old, and have received a letter from the creditor, it is within their remit to do this. Some creditors, such as HMRC, can collect debts without needing to go to court, and even if the debt is statute-barred. So make sure you know who you owe the debt to.