---
title: "Time-barred debts: can a creditor still petition on an old debt?"
url: https://windinguppetitionsolicitors.co.uk/time-barred-debts-can-a-creditor-still-petition-on-an-old-debt/
date: 2026-10-26
modified: 2026-10-26
lang: en
author: "Hamza Chaudhry"
description: "Yes, a creditor can still serve a statutory demand on an old debt. Section 123(1)(a) of the Insolvency Act 1986 asks whether the company is “indebted in a sum exceeding £750 then due”, and nothing in that wording asks whether the creditor could still sue for the money. The difficulty comes afterwards: if the debt is statute-barred under the Limitation Act 1980, the company has a defence to the claim, and we would expect a petition built on that debt to be challenged as disputed and to risk dismissal."
categories:
  - "Bankruptcy"
  - "Companies Court"
  - "company Insolvency"
  - "Insolvency"
  - "Insolvency Act 1986"
  - "Limitation"
  - "Statutory Demand"
  - "Winding-Up Petitions"
tags:
  - "Disputed Debt"
  - "judgment debt"
  - "Limitation Act 1980"
  - "limitation period debt"
  - "old debt"
  - "rule 10.4 Insolvency Rules 2016"
  - "Section 123 Insolvency Act 1986"
  - "section 24 Limitation Act 1980"
  - "section 268 Insolvency Act 1986"
  - "section 29 Limitation Act 1980"
  - "section 5 Limitation Act 1980"
  - "set aside statutory demand"
  - "statute-barred debt"
  - "statutory demand"
  - "time-barred debt"
  - "Winding Up Petition"
image: https://windinguppetitionsolicitors.co.uk/wp-content/uploads/Time-barred-debts-can-a-creditor-still-petition-on-an-old-debt-1024x683.png
word_count: 2660
---

# Time-barred debts: can a creditor still petition on an old debt?

Yes, a creditor can still serve a statutory demand on an old debt. Section 123(1)(a) of the Insolvency Act 1986 asks whether the company is "indebted in a sum exceeding £750 then due", and nothing in that wording asks whether the creditor could still sue for the money. The difficulty comes afterwards: if the debt is statute-barred under the Limitation Act 1980, the company has a defence to the claim, and we would expect a petition built on that debt to be challenged as disputed and to risk dismissal.

The question reaches us from two directions. A director opens a demand for an invoice from 2017 and assumes it cannot be enforced. A creditor holding an old unpaid invoice wonders whether a petition is still available. Both are usually surprised, because limitation restricts the bringing of an action, and a statutory demand is not an action.

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**
*The information on this website is not legal advice; you should always obtain specific advice on the circumstances of your case. Our Winding-up Petition Solicitors & Barristers provide specialist legal advice based on decades of expertise. [Request a legal assessment](https://windinguppetitionsolicitors.co.uk/legal-case-assessment) or call [+442071830529](tel:+442071830529) to get in touch. For regulatory reasons we do not take on low value cases nor provide free legal advice, information or guidance and our team cannot answer questions from non-clients.*

## What "time-barred" means under the Limitation Act 1980

Section 5 of the Limitation Act 1980 provides that "An action founded on simple contract shall not be brought after the expiration of six years", and the six years run from the date the cause of action accrued. For an unpaid invoice that is usually the date payment fell due, although the contract terms can move that date, and section 6, headed "Special time limit for actions in respect of certain loans", applies different rules to some loans. Our [guide to limitation periods in litigation](https://lexlaw.co.uk/solicitors-london/limitation-in-litigation-know-your-limits/) explains that a cause of action accrues when all the facts needed to support the claim exist, and that once the period has expired "the Defendant has a complete defence to the claim."

Where the obligation sits in a deed, section 8(1) allows longer: "An action upon a specialty shall not be brought after the expiration of twelve years". A personal guarantee shows both periods in practice. Our page on [personal guarantees on business loans](https://lexlaw.co.uk/solicitors-london/government-backed-business-loan-personal-guarantee-are-you-still-liable/) explains that a guarantee given as a simple contract generally carries six years and one executed as a deed twelve, and that the start date depends on the wording, including whether a demand is a condition of liability.

## Is a time-barred debt still owed?

The Act bars the bringing of an action. It does not say in terms that the debt disappears. We take the view that the debt continues to exist but cannot be recovered by ordinary proceedings if the debtor relies on limitation, and that distinction explains why a demand can be served at all. It also means the point has to be raised. In our experience a court will not take limitation on behalf of a company that has put nothing before it, which is why the [consequences of an expired limitation period](https://lexlaw.co.uk/solicitors-london/limitation-in-litigation-know-your-limits/) only help a debtor who relies on them.

That is why we treat limitation as a dispute about the debt. Our [guide to challenging a winding-up petition](https://windinguppetitionsolicitors.co.uk/how-to-challenge-a-winding-up-petition-uk-guide-2026/) makes the point that "Where the debt is genuinely disputed, negotiation is not enough", and the court will not order liquidation where there is a genuine dispute. A company with a clear limitation defence therefore has the same job as any other company opposing a petition, which is to put the evidence in front of the court early. We deal with the mechanics in our page on [opposing a winding-up petition](https://windinguppetitionsolicitors.co.uk/opposing-a-winding-up-petition/).

## A statutory demand does not expire

For a company, section 123(1)(a) is satisfied where a creditor "has served on the company, by leaving it at the company's registered office, a written demand (in the prescribed form) requiring the company to pay the sum so due and the company has for 3 weeks thereafter neglected to pay the sum or to secure or compound for it to the reasonable satisfaction of the creditor". For an individual, section 268(1)(a) requires that the debt is payable immediately, that the demand was served, that "at least 3 weeks have elapsed since the demand was served" and that it has been "neither complied with nor set aside in accordance with the rules". Our page on [issuing a statutory demand](https://windinguppetitionsolicitors.co.uk/issue-statutory-demand/) adds that a demand "does not expire".

No judge looks at the demand when it is served, so nobody asks about limitation at that stage. The creditor sends a document, the clock starts, and the debtor either deals with it or does not. Our guide to [making and serving a statutory demand](https://lexlaw.co.uk/statutory-demand-debt-enforcement-recovery-solicitors-london-advice/) sets out how creditors use that step, which is why an old debt can reappear in this form years after the creditor stopped chasing it.

## Challenging the demand: a company and an individual take different routes

An individual applies to the court to set the demand aside. Rule 10.4(2) of the Insolvency (England and Wales) Rules 2016 says: "The application must be made within 18 days from the date of the service of the statutory demand." Under rule 10.5(5)(b) the court may grant the application if "the debt is disputed on grounds which appear to the court to be substantial". We would put a limitation defence under that ground. Our pages on [setting aside a statutory demand as an individual](https://lexlaw.co.uk/solicitors-london/setting-aside-a-statutory-demand-as-an-individual/) and [the set-aside process generally](https://lexlaw.co.uk/set-aside-statutory-demand-insolvency-legal-advice/) cover the procedure.

A company's position differs. The company that disputes a demand under section 123(1)(a) responds in writing and, if the creditor will not stand down, applies for an injunction to restrain presentation of the petition. Our page on [restraining presentation of a winding-up petition](https://windinguppetitionsolicitors.co.uk/obtaining-injunction-restrain-presentation-winding-up-petition/) says the court grants that only where there is prima facie evidence of a substantial and bona fide dispute. Our overview of [setting aside a demand before bankruptcy or winding-up](https://windinguppetitionsolicitors.co.uk/setting-aside-a-statutory-demand-before-bankruptcy-or-winding-up/) deals with both situations side by side.

## When a payment or a letter restarts the six years

Limitation is not always final. Under section 29(5), where a person liable for "any debt or other liquidated pecuniary claim" acknowledges the claim or makes any payment in respect of it, "the right shall be treated as having accrued on and not before the date of the acknowledgment or payment." An acknowledgment counts only if it is "in writing and signed by the person making it" (section 30(1)), and it must be made to the creditor or the creditor's agent (section 30(2)(b)). A small payment made in year five can therefore give the creditor a fresh six years, and the general rules on when time runs are in our [guide to limitation periods in litigation](https://lexlaw.co.uk/solicitors-london/limitation-in-litigation-know-your-limits/).

The limit on that rule matters just as much. Section 29(7) provides that "a right of action, once barred by this Act, shall not be revived by any subsequent acknowledgment or payment." It is a common mistake to think that any payment revives an old debt, and that is wrong once the six years have ended. We cover the practical side in our [debt recovery](https://windinguppetitionsolicitors.co.uk/debt-recovery/) page, which carries its own Limitation Act warning, and we advise any director not to pay part of an old debt, or write about it, until the dates have been checked.

Directors who have given guarantees need one further point. Section 31(6) says an acknowledgment binds "the acknowledgor and his successors", but section 31(7) says a payment binds "all persons liable". Read together, a payment by the company may extend time against a director who guaranteed the same debt, while a letter from the company may not. That reading comes from the text of the sections, and we would test it against the facts before relying on it. A director facing personal exposure can read our guidance on [bankruptcy advice for individuals](https://windinguppetitionsolicitors.co.uk/bankruptcy-advice/).

## Judgment debts follow a different rule

If the creditor has a court judgment, section 24(1) provides that "An action shall not be brought upon any judgment after the expiration of six years from the date on which the judgment became enforceable", and section 24(2) bars arrears of interest on a judgment debt after six years from the date the interest became due. That might suggest an old judgment is useless as the basis for a petition. Our own pages say otherwise. Our [debt recovery](https://windinguppetitionsolicitors.co.uk/debt-recovery/) page states that the Limitation Act 1980 "does not impose a limitation period for winding up petitions founded upon judgment debts".

The reasoning appears in our guides to [enforcing old judgment debts beyond six years](https://lexlaw.co.uk/solicitors-london/creditors-guide-to-enforcement-of-unpaid-old-court-judgment-debts-in-the-uk-2025/) and to [enforcement of a judgment debt](https://lexlaw.co.uk/enforcement-recovery-judgment-debt-solicitors-london/). Enforcing an existing judgment is treated as execution of that judgment and not as a fresh claim, and some enforcement methods need the court's permission once six years have passed. A company served with a demand based on an old judgment should therefore not assume that age alone will stop a petition.

## The time limit you may really be thinking of

Searches on this topic bring up other limitation questions that share the vocabulary. Tax debts follow their own rules, which we do not cover in this piece. If the debt is owed to HMRC, our page on [HMRC statutory demands](https://taxdisputes.co.uk/hmrc-statutory-demand/) explains the challenge route, and our page on [HMRC recovery of international tax debts](https://taxdisputes.co.uk/mutual-assistance-recovery-debt-mard-oecd-hmrc-international-debt-collection-tax/) sets out a separate five-year rule for requests from foreign tax authorities. We also explain [when HMRC can wind up a company](https://windinguppetitionsolicitors.co.uk/can-hmrc-wind-up-my-company-directors-guide-to-winding-up-petitions/) and [when HMRC can make a director or sole trader bankrupt](https://windinguppetitionsolicitors.co.uk/can-hmrc-make-me-bankrupt-directors-sole-traders-bankruptcy-risks-explained/).

Others arrive wanting to know how long they have to claim against an adviser who gave bad advice. That is a different question under the same Act, and our pages on the [limitation period in professional negligence claims](https://professionalnegligenceclaimsolicitors.co.uk/limitation-period-in-professional-negligence-claims/) and [time-barred compensation](https://professionalnegligenceclaimsolicitors.co.uk/time-barred-compensation-in-professional-negligence-claims/) explain the six-year period, the extension for late knowledge and the final cutoff. Directors sued by a liquidator face yet another version, covered in our page on [whether a liquidator can still sue after six years](https://lexlaw.co.uk/solicitors-london/can-a-liquidator-sue-after-six-years-thg-v-zedra-explained/).

## What to do if a demand arrives for an old debt

Start with the dates. Work out when payment fell due, whether anything has been paid since, whether anything signed has been sent to the creditor, and whether the creditor ever obtained a judgment. Then reply in writing, within the demand period, saying that the debt is disputed and why. Our [step-by-step guide to defending a winding-up petition](https://windinguppetitionsolicitors.co.uk/step-by-step-guide-to-defending-a-winding-up-petition-advice-for-directors/) shows how a dispute is evidenced, and the [winding-up process](https://windinguppetitionsolicitors.co.uk/what-is-the-process-of-winding-up-procedure/) page shows where each step falls.

If a petition has already been presented, the bank may freeze the company account. Our guide to a [bank account frozen after a winding-up petition](https://windinguppetitionsolicitors.co.uk/bank-account-frozen-after-winding-up-petition-what-directors-can-do-now/) deals with that, and our page on [validation orders](https://windinguppetitionsolicitors.co.uk/validation-order/) explains how a company can keep trading while the petition is pending.

## The deadlines that run whatever the age of the debt

A limitation defence does not pause any of the clocks. A company that neglects to pay for "3 weeks" after service of a section 123(1)(a) demand has given the creditor a basis for a petition, and an individual's three weeks under section 268(1)(a) run in the same way. An individual's application to set the demand aside must be made within 18 days of service under rule 10.4(2). Our page on [setting aside statutory demands](https://windinguppetitionsolicitors.co.uk/statutory-demand-set-aside-lawyers-london-hmrc/) explains that time runs "from the date of service" and not from the date on the document, and that after 18 days the court's permission is needed, so a late application is at its discretion.

The practical result is that a debtor who sits on a limitation point for a month may find the position much harder to put right. A company has no set-aside application to lose, but it has the same three weeks to dispute the debt in writing and a creditor who may present the petition when they expire. Raise the limitation point in the first reply, and do not wait for the petition. Our [guidance on injunctions against petitions](https://windinguppetitionsolicitors.co.uk/obtaining-injunction-restrain-presentation-winding-up-petition/) shows what the court will want to see.

## If you are the creditor

An old debt is not necessarily worthless, because a payment or a signed acknowledgment inside the six years may have extended time, and a judgment may still support a petition. Check the file for both before deciding anything. Our guide to [recovering unpaid debts](https://windinguppetitionsolicitors.co.uk/debt-recovery/) explains the options.

If the debt is statute-barred with no acknowledgment and no judgment, the risk changes sides. Our [guide to old judgment debts](https://lexlaw.co.uk/solicitors-london/creditors-guide-to-enforcement-of-unpaid-old-court-judgment-debts-in-the-uk-2025/) warns that petitions based on disputed debts can be dismissed with costs awarded against the creditor, and a company that raises limitation turns your petition into a disputed-debt petition. Our page on [opposing a winding-up petition](https://windinguppetitionsolicitors.co.uk/opposing-a-winding-up-petition/) shows how the other side will approach it.

## How LEXLAW Can Help

We act for companies and individuals served with statutory demands and petitions on old debts, and for creditors who need to know whether an old debt can still support insolvency proceedings. We do not offer free legal advice and we do not act under legal aid, and we generally take on substantial matters. Our work on [opposing winding-up petitions](https://windinguppetitionsolicitors.co.uk/opposing-a-winding-up-petition/) is where most of these cases start.

We are dual qualified solicitors and barristers, with chambers in Middle Temple next to the Royal Courts of Justice. We offer a fixed fee advice conference with both a solicitor and a barrister, and you can start by completing our [case assessment form](https://windinguppetitionsolicitors.co.uk/legal-case-assessment/).

### Check Your Insolvency Case ✔
We analyse your winding-up petition prospects. We deliver strategic legal advice at your first meeting. We get optimal legal results. *Want a first or second opinion on your case? *Click below or call our lawyers in London on ☎ [02071830529](tel:+442071830529)

[Check your case ✔](https://windinguppetitionsolicitors.co.uk/legal-case-assessment/)

**ALWAYS OBTAIN SPECIFIC GUIDANCE & ADVICE
**
*The information on this website is not legal advice; you should always obtain specific advice on the circumstances of your case. Our Winding-up Petition Solicitors & Barristers provide specialist legal advice based on decades of expertise. [Request a legal assessment](https://windinguppetitionsolicitors.co.uk/legal-case-assessment) or call [+442071830529](tel:+442071830529) to get in touch. For regulatory reasons we do not take on low value cases nor provide free legal advice, information or guidance and our team cannot answer questions from non-clients.*

### FAQs

Can a creditor serve a statutory demand for a debt older than six years?
Yes. Section 123(1)(a) of the Insolvency Act 1986 refers to a sum "then due", and section 268(1) of the same Act refers to a debt "payable immediately", and neither provision mentions limitation. The age of the debt matters at the later stage, when the debtor puts a limitation defence before the court.

Is a statute-barred debt still owed?
Section 5 of the Limitation Act 1980 bars an action on a simple contract debt after six years. It does not say in terms that the debt ceases to exist, and we treat it as a debt that cannot be enforced by ordinary action if the debtor relies on limitation.

Does a part payment restart the six years?
If it is made within the six years, yes: section 29(5) treats the right as accruing on the date of payment. Once the period has expired, section 29(7) says a barred right of action is not revived by a later acknowledgment or payment.

Does an email count as a written acknowledgment of a debt?
Section 30(1) requires an acknowledgment to be in writing and signed by the person making it, and it must be made to the creditor or the creditor's agent under section 30(2)(b). Whether a particular email satisfies those requirements depends on its content and the circumstances, so we would take advice before assuming that it does not.

How long do I have to challenge a statutory demand?
An individual must apply to set the demand aside within 18 days from the date of service under rule 10.4(2) of the Insolvency (England and Wales) Rules 2016. For both individuals and companies, three weeks after service without payment gives the creditor a basis to petition under section 268(1)(a) or section 123(1)(a).

Can a creditor petition on a judgment debt more than six years old?
Section 24(1) of the Limitation Act 1980 bars an action upon a judgment after six years from the date it became enforceable. Our view, set out on our own pages, is that this does not impose a limitation period on a petition founded on a judgment debt, although some enforcement methods need the court's permission after six years.

Does limitation apply to a personal guarantee?
A claim on a guarantee given as a simple contract must generally be brought within six years under section 5 of the Limitation Act 1980, and within twelve years if the guarantee was executed as a deed under section 8(1). When time starts depends on the guarantee's wording, including whether a demand is a condition of liability.

What happens if I ignore a demand on an old debt?
Under section 123(1)(a), a company that neglects to pay for three weeks after service has given the creditor a basis for a petition, and the creditor can then present one. Ignoring the demand means the limitation point is not raised until the petition, when the position is harder to put right.