Statute Barred Debt
Debt solutions

24th November 2021 · 4 minute read

  • Defaulted debt
  • Debt problems
  • Managing debt
  • Statute Barred Debt
  • Mortgage debt
  • Unsecured debt
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How do you know if your debt is statute barred

Do you have Statute Barred debt?

When you’re trying to cope with a stressful debt situation it can sometimes feel like you’ve stepped into another world. There’s a whole new language full of confusing acronyms like CCJ’s and legal terms like Statute Barred debt. It can feel like a minefield. It’s important to understand some of these terms as they could help you.

Let’s breakdown the jargon so you can identify if your debt is Statute Barred, and if it is (fingers crossed!) what this means for you.

Not in the mood to read? We got you covered. Listen to the rest with the YouTube link at the bottom of the page

What is a Statute Barred debt?

In simple terms, a Statute Barred Debt, is a debt that is no longer recoverable via the court system. This means the creditor is unable to obtain a County Court Judgement (CCJ) against the debt. However, this doesn't mean that the debt does not exist. The creditor or debt collector may still continue to make attempts to recover the debt.

I know it's confusing, right? Put simply, if your debt can be classed as Statute Barred, it’s a good thing for alleviating some of the financial pressure you may be experiencing.

How do I know if my debt is statute barred?

There are three main categories of Statute Barred Debt relating to any debts you might have. These are:

Unsecured debts:

Quick definition. Unsecured debt is any debt whereby the lenders cannot collect any of your assets to repay the debt, things like credit cards and utility bills.

If you have any unsecured debts and you are 100% certain you meet all of the below criteria:

  • You or anyone else responsible for the debt have not made any payments towards the debt for the last 6 years.
  • You or anyone else responsible for the debt have not communicated with the creditor/debt collector for the last 6 years.
  • The creditor or debt collector has not gone to court about the debt.

Your debt could be classed as Statute Barred Debt. If you want to keep it that way there is a specific way to handle this debt – we’ll touch on this shortly.

Mortgage - Any remaining interest after your home has been repossessed:

If your home has already been repossessed, there is a remaining debt of interest on your mortgage and you are 100% certain you meet all of the below criteria:

  • You or anyone else responsible for the debt have not made any payments towards the debt for the last 6 years.
  • You or anyone else responsible for the debt have not communicated with the creditor or debt collector for the last 6 years.
  • The creditor or debt collector has not gone to court about the debt.

Your debt could be classed as Statute Barred Debt. If you want to keep it that way there is a specific way to handle this debt – we’ll come to this very soon!

Mortgage - Remaining borrowed amount (excluding interest) after your home has been repossessed:

If your home has already been repossessed, there is still a borrowed amount remaining on that mortgage (excluding the interest) and you are 100% certain you meet all of the below criteria :

  • You or anyone else responsible for the debt have not made any payments towards the debt for the last 12 years.
  • You or anyone else responsible for the debt have not communicated with the creditor/debt collector for the last 12 years.
  • The creditor or debt collector has not gone to court about the debt.

Your debt could be classed as Statute Barred Debt. If you want to keep it that way there is a specific way to handle this debt (we’re nearly there).

You will notice that these are quite specific – but not so uncommon – scenarios of debt difficulty. In 2021 alone it was reported that approximately 62.8 million credit cards were issued to UK residents and a whopping 65.5% of UK citizens are homeowners.

That’s a lot of people at risk of financial difficulty.

What can I do if my debt is Statute Barred?

If after reading the above, you think your debt is Statute Barred, The Real Debt Guy has got you covered. You can send a specific letter to the creditor or debt collector and based on the Limitation Act 1980, they should stop their contact with you for this particular debt. Download the letter here.


However, before sending this letter, it’s important you have not done any of the following in the last six or twelve years, depending on the type of debt:

  • Acknowledged or admitted the debt - this isn’t as simple as it sounds as it could be assumed from any form of communication with the creditor or debt collector, such as a telephone call, or any letter you send to them about the debt.
  • Made payments towards the debt - no matter how small, even one penny.
  • Engaged in any other conversations about the debt - this includes written and verbally with the creditor or debt collector.

If all goes to plan, you should receive a letter from the creditor confirming that your debt is indeed classified as Statue Barred and you will receive no further contact.

Don't forget to read The Real Debt Guy's final thoughts below!

The information in this article is considered to be true and correct at the date of publication.

The Real Debt Guy's final thoughts.

At The Real Debt Guy we genuinely care about your wellbeing. That’s why we want you to understand all of your options, so you can choose what is best for you and your family, as well as your mental and emotional state.

Your debt shouldn’t control you. We want you to feel empowered to control your debt.

Knowing all the facts is a big step towards reaching this goal. Understanding your finances is another. That's why we've also created a budget planner to help you. You can head over there by clicking the button below.

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