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THE STATUTE OF LIMITATIONS ACT 1935 (WA)

Time limits on debt recovery for unsecured debts

The Statute of Limitations Act 1935 (WA), among other things, determines how long your creditors have to make a claim on a debt.

This information sheet applies to the recovery of "unsecured debts" where the creditor has no particular interest over property you own, for example, a mortgage.

Unsecured creditors have 6 years in which to go to court and claim on a debt. The 6 years will start to run from the date that the debt was due to be paid OR the date you last admitted the debt in writing, or by making a payment toward the debt. If a creditor commences court action against you after the 6 years has elapsed you can defend the claim, stating that the claim is "statute barred" and that the creditor is out of time.

If the debt has been admitted at any time after it fell due, the 6-year period starts to run afresh from date you make that admission.

Once a creditor has started court action for recovery of the debt (for example, issuing a white summons in the Local Court) within the 6 years, it is no longer possible to raise the limitation period.

With some contracts it can be difficult to establish exactly when the debt or debts fall due and when the limitation period begins to run.

If you think you have an unsecured debt which is more than 6 years old you should seek legal advice about whether you have to pay the debt.

WARNING! This information sheet is intended ONLY to provide general information and should not be regarded as legal advice. You should seek legal advice if you think you have debts which may be statute barred.

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