Limitations
The creditor has not taken court action within the time limit
If the creditor has not taken court action within the time limit set down in law, the debt is unenforceable. This is known as 'statute barred'. If one thinks a debt is statute barred, s/he must take advice from a specialist adviser straight away and before contacting the creditor or taking any other action on behalf of the client.
Time limits in England, Wales and N.
In England, Wales and N. Ireland, in general, creditors have six years in which to take a client to court for the debt. There are certain rules about when a time limit starts to run for the purposes of court action for debt.
For the capital sum of a mortgage (not the interest) the time limit is 12 years. However, lenders who are members of the Council of Mortgage Lenders (CML) have agreed voluntarily that they will begin all recovery actions for shortfalls within the first six years following the sale of a property which has been repossessed.
There are no time limits which stop HM Revenue and Customs from collecting tax once the initial assessment has been made.
Enforcement of a judgment in England, Wales and N. Ireland
In England and Wales, once a judgment has been entered there is no time limit within which to start enforcement proceedings. The exception to this is that a warrant of execution against goods cannot be issued more than six years after a judgment, without leave of the court.
A charging order cannot be enforced by an order for sale where the application for an order for sale is made more than twelve years after the date of the charging order, subject to acknowledgement. This is because an order for sale is a new action with its own time limits, rather than enforcement of the original judgment.
Warning if not sure seek advice