There is a deadline on chasing a debt through the courts. For most unpaid invoices it is six years — here is how the limitation period works and why it pays to act early.
Under the Limitation Act 1980, a simple contract debt — which most unpaid invoices are — can generally be pursued through the courts for six years from the date it became due. After that it usually becomes statute-barred and a claim will normally fail.
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The six-year figure is the outer edge, not a target. The longer a debt sits, the harder it is to recover in practice.
The Limitation Act 1980 sets the time within which most debt claims must be started. For a simple contract debt the period is six years, running from the date the cause of action accrued — broadly, when the debt became due for payment. If you do not start a claim within that window, the debt typically becomes statute-barred: it still exists, but a court claim brought out of time will normally fail on that basis.
Some events can restart the six years — most notably the debtor acknowledging the debt in writing, or making a part payment. But relying on that is risky. In practice, the sooner you act the better: records are fresher, the debtor is easier to trace, and a reminder or Letter Before Action while the debt is firmly in time is far more likely to get you paid. If a debt does prove unrecoverable, VAT bad debt relief can usually return the VAT you paid on it, a fallback rather than a substitute for recovering the debt.
Not sure of a term? See the glossary, or read the full recovery process.
For a simple contract debt — which most unpaid invoices are — the Limitation Act 1980 generally gives six years from the date the debt became due to start a court claim. After that the debt usually becomes statute-barred.
A statute-barred debt is one that is too old to pursue through the courts because the limitation period has expired. The debt still exists, but a court claim to recover it will normally fail on that basis.
Broadly, from the date the debt became due — often the date payment was due under your invoice or terms. Certain events, such as the debtor acknowledging the debt in writing or making a part payment, can reset the clock.
Acting sooner is almost always better: evidence is fresher, the debtor is easier to trace, and you stay well clear of the limit. A reminder costs little and starts the process while the debt is firmly in time.
Start with a reminder while the debt is firmly in date. RobinReturn is not a law firm and does not give legal advice.
For undisputed invoices up to £10,000 owed by another business in England or Wales.
Related guidesHow to recover an unpaid invoice (step by step) · What evidence do I need to claim an unpaid invoice? · How to check a company can pay before you sue · All guides