In England, in accordance with the Limitation Act 1980 you have six years to pursue an unpaid debt. This time period runs from the date payment comes due.
After this timeframe has elapsed the debt becomes Statute Barred. This means that if you pursue the debt and issue a County Court Claim after the six years have expired the debtor has a complete Defence to the claim. This means that the debtor could use the expiry of the limitation period as a reason for not paying the debt. The burden would then be on you to prove that the time frame hasn't expired.
However, if the debtor has done either of the following the usual time limits may not apply:
If either of the above have happened the six year time period would start over again from the date of acknowledgment. This would even apply after the limitation period has expired.
Therefore if you have been in contact with the debtor but believe the time frame to have lapsed it is always worth checking with our Forbes Collect team. The debtor may well have acknowledged the debt and so you may be entitled to pursue the unpaid invoices in any event.
For more information contact us on 0800 689 4176 or email us on firstname.lastname@example.org
13 Dec 2017
If you are faced with the situation where you have to take one of your clients to Court to recover your unpaid…
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