Yes. If you believe a debt may be statute barred — meaning the limitation period for commencing legal proceedings has expired — you can and should raise it as part of a dispute.
The limitation period for most simple contract debts in Australia is six years from when the debt became due, though this varies by state, territory and debt type. Once the period has expired, a creditor generally cannot commence court proceedings to enforce the debt.
How to raise it:
- Use the Dispute a Debt form and state clearly that you believe the limitation period may have expired. Include the approximate date the debt arose and any relevant background.
- We will investigate the claim — checking when the debt became due, whether any events have restarted the limitation clock (such as a written acknowledgement of the debt or a partial payment), and what the rules are in the relevant jurisdiction.
- We will respond to you in writing with our findings.
Important: making a payment, or acknowledging a debt in writing, can restart the limitation period even on a very old account. If you believe a debt may be statute barred, seek independent advice before taking any of these steps.
The National Debt Helpline (1800 007 007) or a community legal centre can provide free guidance on how the limitation rules apply to your situation.
Was this article helpful, or still not sure? Our team is happy to talk it through.