Statute of limitations on debts in Ireland: when a debt is time-barred
In Ireland a creditor does not have unlimited time to sue for a debt. The Statute of Limitations 1957 sets fixed periods within which court proceedings must be issued. For most ordinary debts, such as unpaid invoices, credit card balances, personal loans, overdrafts and money lent between friends, the period is 6 years from the date the cause of action accrued (s. 11(1)(a)). For debts under a deed (a document executed under seal) and for the principal secured by a mortgage, it is 12 years. A court judgment can be enforced by action for 12 years from when it became enforceable, but arrears of interest on it only for 6 years.
Two features of Irish law catch people out. First, the Statute bars the remedy, not the debt itself: the creditor can still ask you to pay, and the court will not apply the time limit unless you raise it in your defence. Second, the clock can restart. A written and signed acknowledgment of the debt, or any part payment, including a payment of interest, gives the creditor a fresh 6 or 12 years from that date (ss. 56, 58 and 65).
This guide explains how to work out when the period started, how acknowledgments and payments affect it, what to do when a creditor or debt purchaser chases an old debt or issues a summons, and, for creditors, how to protect a claim before it becomes statute-barred.
Key facts
Deadline
Most debts become statute-barred 6 years after the cause of action accrued, usually the date payment fell due or the date of the first default (s. 11(1) of the Statute of Limitations 1957). Debts under a deed and mortgage principal: 12 years (ss. 11(5) and 36); mortgage interest arrears: 6 years (s. 37). An action on a judgment must be brought within 12 years of the date the judgment became enforceable, and judgment interest is recoverable for only 6 years (s. 11(6)). A claim against the estate of a deceased debtor must be brought within the ordinary period or within 2 years of the death, whichever expires first (s. 9(2) of the Civil Liability Act 1961). A signed written acknowledgment or a part payment restarts the period from that date.
What to do
- Identify what kind of debt it is. The limitation period depends on the legal basis of the claim. An ordinary contract debt (invoice, credit card, personal loan, overdraft, phone or utility bill, money lent informally) is a simple contract claim: 6 years under s. 11(1)(a). A claim to recover money paid by mistake or unjust enrichment is quasi-contract: also 6 years under s. 11(1)(b). A debt under a deed executed under seal, such as some loan agreements, guarantees and mortgages, attracts 12 years under s. 11(5)(a). Principal secured by a mortgage or charge on land is 12 years (s. 36), while mortgage interest arrears are recoverable for only 6 years (s. 37). Tax debts and some statutory charges follow their own rules. Get the original agreement before you rely on any period.
- Work out when the clock started. Time runs from the date the cause of action accrued, which for a debt is normally the date payment fell due and was not made. For a loan repayable on a fixed date, that is the due date; for a loan repayable on demand, it is usually the date a proper demand was made; for an invoice, the end of the credit period. Instalment debts are more complex: each missed instalment can have its own period, but if the agreement contains an acceleration clause and the lender called in the full balance, time generally runs for the whole debt from that demand. Write down the date of the last payment, the date of any formal demand or termination notice, and the date of any letter you signed, because each of these can be decisive.
- Check whether the period was restarted. Under s. 56, where the debtor acknowledges a debt, the right of action is treated as accruing on the date of the acknowledgment, giving the creditor a fresh period. Section 58 requires the acknowledgment to be in writing and signed by the debtor or the debtor's agent, and made to the creditor or the creditor's agent; a phone call does not count. Under s. 65 any payment in respect of the debt, including interest, also restarts time from the date of payment. Small token payments under a payment plan therefore keep an old debt alive. Unlike the modern English legislation, the 1957 Act contains no express rule preventing an expired debt from being revived, so take advice before signing anything or paying anything on a very old debt.
- Consider factors that delay the start. Under s. 71, where the action is based on the defendant's fraud or the right of action was concealed by fraud, time does not run until the claimant discovered the fraud or could with reasonable diligence have discovered it. Section 72 makes similar provision for actions for relief from the consequences of a mistake. Under ss. 48 and 49, if the person entitled to sue was under a disability (a minor, or of unsound mind) when the right accrued, they have 6 years from the end of the disability. These exceptions are applied strictly: courts expect concrete facts showing fraud or concealment, not general allegations, and a claimant who could have found out with ordinary care cannot rely on them.
- If you are the debtor and receive a demand for an old debt. Do not ignore it, but do not admit the debt or pay anything either. Ask the creditor or debt purchaser in writing for a copy of the original agreement, a statement of account showing the date of the last payment, and proof that they own the debt (many Irish loan books have been sold to funds and are serviced by credit servicing firms regulated by the Central Bank). Phrase the letter carefully: a sentence such as "I accept I owe this but cannot pay" may be an acknowledgment. If more than 6 years (or 12 for a deed) have passed since the cause of action accrued and nothing has restarted time, reply that the claim is statute-barred and that you will rely on the Statute of Limitations 1957 if proceedings are issued.
- If you are served with court proceedings, plead the Statute. Debt claims go to the District Court up to €15,000, the Circuit Court up to €75,000 and the High Court above that, under the limits set by the Courts and Civil Law (Miscellaneous Provisions) Act 2013. A District Court civil summons or a Circuit Court civil bill has a short deadline for entering an appearance or a defence (typically around 10 to 14 days; check the document served on you). Limitation is a defence that must be pleaded expressly: the judge will not raise it on the court's own motion. If you do not respond, the creditor may obtain judgment in default, and the debt then becomes a judgment debt enforceable for up to 12 years. Courts often decide limitation as a preliminary issue, which can end a claim early.
- If you are the creditor, act before time runs out. Calendar the expiry date for every overdue account. A letter of demand does not stop time; only issuing proceedings does, so issue the summons, civil bill or summary summons before the period expires, even if you continue negotiating. If the debtor is willing to engage, ask for a signed written acknowledgment of the amount owed or a payment, either of which gives you a fresh period. If the debtor has died, act quickly: under s. 9(2) of the Civil Liability Act 1961, a claim against the estate must be issued within the normal period or within 2 years of the death, whichever expires first. Lodge a claim with the personal representative as soon as you learn of the death.
- Know the time limits for enforcing a judgment. Once you have judgment, s. 11(6)(a) allows an action on the judgment for 12 years from the date it became enforceable, but s. 11(6)(b) limits arrears of interest on the judgment to 6 years. Execution against goods through the sheriff or county registrar can usually be issued without leave within 6 years of judgment; after that the court's leave is required under the Rules of the Superior Courts. A judgment mortgage registered against the debtor's property is a separate security with its own enforcement rules. The court may also award interest under s. 22 of the Courts Act 1981 for the period before judgment. Consider an instalment order in the District Court or, where the debtor is insolvent, bankruptcy or a personal insolvency arrangement.
- Keep records and get advice where the sums are significant. Whether you are owed money or being chased for it, keep every statement, letter, email and payment record, and note the date and method of each contact. Limitation disputes usually turn on documents: the original agreement, the date of default, any demand, and any signed acknowledgment or payment. For debts secured on your home, debts sold to funds, or claims above the District Court limit, take advice from a solicitor, MABS (the Money Advice and Budgeting Service, free and confidential) or a personal insolvency practitioner. Abhaile, the State mortgage arrears scheme, provides free advice for homeowners in arrears.
What to watch out for
- A single signed letter or small payment can restart a 6-year period from scratch. Payment plans agreed with debt collectors are the most common way old debts are revived.
- The Statute does not wipe out the debt. Creditors can still ask for payment and may report it to credit reference systems for as long as the rules allow, and the time bar only helps you if you plead it in court.
- Ignoring a summons or civil bill leads to judgment in default even on a time-barred debt, because the limitation defence was never raised. A judgment then runs for a further 12 years.
- Debts under seal and mortgage debts have a 12-year period, not 6. Assuming the shorter period for a guarantee or mortgage can be an expensive mistake.
- Fraud or concealment can postpone the start of the period under s. 71. A debtor who hid assets or misled the creditor cannot count on the clock having run from the original default.
- For creditors, a letter of demand or negotiation does not stop time. Only issuing proceedings does, and against a deceased debtor's estate the deadline may be as short as 2 years from death.
- Amending proceedings after the period has expired to add a new claim or a new defendant is difficult; courts are slow to allow amendments that would deprive the other side of a limitation defence.
Legal basis
Related court decisions
Frequently asked questions
How long can a debt be chased in Ireland?
A creditor can ask for payment indefinitely, but can only sue within the limitation period: 6 years for most contract debts and 12 years for debts under a deed or secured by a mortgage. After that, if you plead the Statute of Limitations 1957 in your defence, the court will dismiss the claim.
Does a debt disappear after 6 years in Ireland?
No. The Statute bars the creditor's remedy in court, it does not cancel the debt. The creditor or a debt purchaser may still write to you and ask for payment. The time bar only protects you if you raise it as a defence when sued, and a signed acknowledgment or any payment can restart the period.
Does making a small payment restart the clock?
Yes. Under s. 65 of the 1957 Act, any payment in respect of the debt, including a payment of interest, causes the right of action to accrue afresh from the date of payment. A €10 payment on a 5-year-old credit card debt gives the creditor a new 6-year period.
Does a phone call or email count as acknowledging the debt?
An acknowledgment must be in writing and signed by the debtor or their agent and made to the creditor or their agent (s. 58). A phone call is not enough. An email may arguably satisfy the writing requirement if it identifies the sender, so avoid emails admitting the debt while you consider your position.
When does the 6 years start for a credit card or loan?
Generally from the date the cause of action accrued, which is usually the date of default or, where the lender demanded the whole balance under the agreement, the date of that demand. Where instalments were missed, each instalment may have its own start date. The date of your last payment is often the key fact, so check your statements.
What is the limitation period for a judgment debt?
An action on a judgment must be brought within 12 years from the date the judgment became enforceable, and arrears of interest on the judgment can be recovered for only 6 years (s. 11(6)). Execution through the sheriff after 6 years from judgment usually needs the court's leave.
Is a mortgage debt subject to the same rule?
No. Principal secured by a mortgage or charge on land has a 12-year period (s. 36), while arrears of mortgage interest can be recovered for only 6 years (s. 37). Possession claims have their own rules. Because mortgage arrears cases are complex, seek advice from MABS, Abhaile or a solicitor.
Can a debt collector contact me about a statute-barred debt?
Yes, a creditor or collector can ask for payment, but they must not mislead you, for example by threatening court action they cannot win. Credit servicing firms are regulated by the Central Bank and bound by its consumer protection rules. Reply in writing that the debt is statute-barred and ask them to stop contacting you.
What if the person who owed me money has died?
Under s. 9(2) of the Civil Liability Act 1961, proceedings against the estate must be issued within the ordinary limitation period or within 2 years of the death, whichever expires first. Notify the executor or administrator in writing at once and issue proceedings well before the 2-year mark if the claim is not admitted.
Does the court apply the time limit automatically?
No. In Irish civil procedure the Statute of Limitations is a defence that the defendant must raise in the defence or other pleading. If you do not enter an appearance or file a defence, the creditor can obtain judgment even on a debt that was statute-barred.
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