What happens after 7 years of not paying debt?

In the UK, nothing special happens to a debt after 7 years. Seven years is a US rule of thumb. Here, two separate clocks matter, and they work differently:

Your credit file: a default normally stays on your credit file for six years from the date of the default, then drops off. That happens whether or not the debt has been paid.
Whether a creditor can take you to court: this depends on the type of debt and where you live. For most unsecured debts the time limit is generally six years in England, Wales and Northern Ireland and five years in Scotland, but there are conditions and exceptions.

A debt dropping off your credit file doesn’t mean it’s gone, and a debt can be too old to take to court while still showing on your file. This guide explains the general rules. It can’t tell you whether a particular debt is out of time, so get free debt advice before you contact a creditor about an old debt or pay anything towards it.

Is my debt written off after 7 years?

No, not automatically, and there’s no 7-year rule in UK law. What happens depends on where you live.

England, Wales and Northern Ireland: for most unsecured debts, such as credit cards, personal loans, overdrafts and catalogue debts, a creditor generally has six years to take you to court. The six years usually runs from your last payment or your last written acknowledgement of the debt. Once that time has passed without court action, the debt is “statute-barred”. It still exists, but the creditor can’t get a court judgment to make you pay it.

Scotland: the period is generally five years and is called “prescription”. It has a stronger effect. If no relevant claim was made and you didn’t acknowledge the debt during those five years, the debt is extinguished, meaning it no longer exists and can’t be recovered.

These are general rules only. Some debts follow different rules, for example mortgage shortfalls, debts where a creditor already has a court judgment against you, and some debts owed to government bodies. A free debt adviser can check how the rules apply to your debt.

What happens to your credit file

Credit file records and legal time limits are separate.

Defaults: a default normally stays on your credit file for six years from the date of the default, even if you pay the debt off. Settling it updates the record to “satisfied” but doesn’t remove it early.
County court judgments (England and Wales): a county court or High Court judgment stays on the Register of Judgments, Orders and Fines for six years, and lenders use the register when deciding whether to lend to you. If you pay the full amount within one month, you can get the judgment removed from the register by writing to the court with proof of payment. If you pay later, it’s marked as “satisfied” but stays for the full six years. This applies in England and Wales. Scotland and Northern Ireland have their own court systems and rules.
Other records: settled or closed accounts usually show for six years from the date they were closed.

Once a record drops off, lenders can no longer see it, which may help your credit score. It doesn’t change whether you still owe the money.

Can a creditor still contact you about an old debt?

In England, Wales and Northern Ireland, a statute-barred debt still exists, so a creditor may still ask you to pay. But regulated firms have to follow Financial Conduct Authority rules. They must not:

chase a statute-barred debt if they (or the original lender) had no contact with you during the limitation period
suggest you could be taken to court for a debt they know, or should know, is statute-barred
keep demanding payment after you’ve told them you won’t pay because the debt is statute-barred

In Scotland, once a debt has prescribed it no longer exists, so there’s nothing for a creditor to recover.

If you think a collector is breaking these rules, you can complain to the firm and then to the Financial Ombudsman Service.

Paying or acknowledging an old debt

Be careful before you pay anything or write to a creditor about an old debt. The effect depends on whether the time limit has already run out:

If the time limit hasn’t run out yet, a payment or a written acknowledgement of the debt can restart the clock, so the creditor gets a fresh period to take you to court.
If the debt is already statute-barred in England and Wales, a later payment or acknowledgement doesn’t make it enforceable through the courts again. A payment still counts towards the balance, though, and you may find it harder to show the debt is statute-barred if the dates are disputed.
In Scotland, a debt that has already prescribed has been extinguished and can’t be revived.

Working out the right start date can be tricky, and collectors don’t always have accurate records. Get free advice before you acknowledge or pay a debt you think may be out of time, or one you don’t recognise.

What to do if you’re contacted about an old debt

Don’t ignore it, but don’t rush to pay. Check the facts first.
Ask for details in writing. Ask the collector to tell you who the original creditor was, the amount and the date of your last payment.
Keep records of all letters, emails and calls. They’ll help if there’s a dispute about dates.
Get free, regulated debt advice before you respond. An adviser can check whether the debt is statute-barred (or prescribed in Scotland) and help you write to the creditor if it is.
Check your credit file with the credit reference agencies to see what’s recorded and when the default was registered.

To conclude

There’s no 7-year rule for debts in the UK. Defaults normally leave your credit file six years after the default date. Whether a creditor can still take you to court depends on the type of debt and where you live: generally six years in England, Wales and Northern Ireland, and five in Scotland, where an old debt can be extinguished completely. Neither rule applies to every debt, so speak to a free debt adviser before you pay or acknowledge an old debt.

Free, confidential debt advice:

National Debtline (England, Wales and Scotland)
StepChange Debt Charity
Advice NI (Northern Ireland)
Citizens Advice Scotland

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