statute-barred debt

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A debt that has not been recovered within the period allowed by the legislation relating to limitation of actions. Such a debt can no longer be recovered by action. The limitation period for debts due on promises made by deed is 12 years from the date the debt became due. For other debts the limitation period is six years from the date the debt became due. However, in certain contracts of loan that do not provide for repayment of the debt by a fixed date and in which repayment is not conditional on a demand by the creditor, the six-year period will not start to run until the creditor makes a demand in writing for repayment of the debt. The Limitation Act 1980 sets out these periods.

Subjects: Law.

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