Broadly speaking, below is a brief, but not exhaustive, guide.
The Limitation Act 1980 applies only when no contact has been made between the creditor and debtor within a certain time limit, and applies to residents of England and Wales.
The time limit depends on the type of debt. For unsecured loans it is 6 years. If the debtor acknowledges the debt in writing or pays an installment within the original limitation period, then the time limit begins again from the date of acknowledgement or the date of payment.
If the creditor does not contact the debtor for 6 years or more, the debtor may be able to claim that the outstanding debt is Statute Barred under the conditions of the Limitations Act. Statute Barred means the creditor cannot use the legal system to enforce payment.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
