Statute barred debt
Statute barred debt The term statute barred debt is used in the meaning of a monetary obligation towards a creditor, which has a specific period of limitation. After this time frame passes, the debt is considered as uncollectible and it is no longer legally executable due to the lapsed prescribed period. Debts have different statute limitations across the world. In the United Kingdom and Wales, under the Limitations Act of 1980, simple contracts and unsecured debts have a limitation period of 6 years in total and secured defaults are valid up to 12 years after the date on which a liability has been marked as overdue.