Understanding How Long You Have to Recover Business Debt

What is The Six-Year Rule for Debt Recovery in England, Wales and Northern Ireland?

A widespread misunderstanding is that unsecured debts are written off after six years especially when looking to recover business debt. While it’s true that many unsecured debts cannot be pursued through legal means after six years, this does not mean the debt simply disappears. Instead, the debt becomes ‘statute barred’, which means that while it still exists, you cannot use the court system to enforce repayment.

It’s important to note that different types of debts are subject to different rules, however the limitation period for most types of debt is six years:

  • Commercial Debts generally have a six-year limitation period from the date of the last payment or acknowledgment of the debt from the debtor.
  • With Mortgages, the debt can be enforced for a maximum of 12 years, whereas for the interest, it remains six years.
  • Personal Loans such as credit cards, utility bills or payday loans are also subject to the six-year rule, from the last payment or written acknowledgment from the debtor.
  • Anything owed to HMRC does not have a limitation period and you can be taken to court at any point.

How to Recover Business Debt When Approaching the End of the Six-Year Period?

Axis TradePay integrates seamlessly with our AccountSure credit management services and Simply Litigation debt recovery legal services, or it can function as a standalone service.

Here’s how we can work for you and your business:

No Collect, No Fee
Our debt recovery services operate on a no collect, no fee basis, starting at a 6% commission. This ensures that you only pay for successful recoveries.

Late Payment Legislation
For B2B debts, we leverage late payment legislation to add charges and interest, often making our services cost-negative.

Ensuring Timely Debt Recovery with Axis TradePay

Timely debt recovery is crucial for maintaining healthy cash flow in your business. Our expert services are designed to ensure you can recover what you’re owed efficiently and effectively.

Don’t let your unpaid invoices become a forgotten cost!

Contact us today to learn how we can assist in recovering your business debts.

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