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Debt law balances a creditor's right to be paid with protections that prevent aggressive or unlawful collection. If you owe money, you have rights too.
Key topics
Most contract debts become statute-barred after six years from the date the creditor's right to sue arose. A statute-barred debt still exists but cannot be enforced through the courts. Making a payment or acknowledging the debt in writing restarts the clock.
Once a creditor has a court judgment, they can enforce it using a warrant of control (seizing goods), attachment of earnings, third-party debt orders, or a charging order on property. Each method has its own procedure and costs.
An individual who cannot pay their debts can apply for bankruptcy, a Debt Relief Order, or enter an Individual Voluntary Arrangement (IVA). Companies use administration, liquidation, or a Company Voluntary Arrangement (CVA).
Collectors must follow the FCA's Consumer Credit sourcebook and the Office of Fair Trading guidance. They cannot contact you at unreasonable times, misrepresent the debt, or threaten action they cannot legally take.
Guides
Stage 04 · file
If someone owes you money and has not paid after a formal demand, you can issue a County Court claim. For amounts up to …
Stage 05 · notice
A letter before action (LBA) is a formal demand sent before starting a court claim. It must clearly state what is owed, …
Stage 06 · file
The small claims track handles disputes up to £10,000 and is designed for people without lawyers. Preparation is the key…
Stage 05 · resolve
A Debt Management Plan (DMP) is an informal arrangement through which you repay your unsecured debts at a reduced monthl…
Stage 03 · rights
If you have been injured because someone owed you a duty of care and failed to meet it — a road accident, a workplace in…
Stage 04 · notice
A statutory demand is a formal notice that gives you 21 days to pay a debt of £5,000 or more or apply to court to have i…
Latest news
The Bank of England held its base rate at 5.5% on 18 September 2026. The statutory rate for late commercial payments under the Late Payment of Commercial Debts (Interest) Act 1998 therefore remains at 13.5% per year (8% above base).
2 min read →A Court of Appeal judgment sets out the limits on creditors pursuing debts older than six years — and what amounts to a fresh acknowledgment that restarts the limitation clock.
4 min read →The reformed Money Claim Online service gains automatic statutory interest calculation, a document upload facility, and an expanded settlement negotiation tool for claims up to £25,000.
3 min read →The maximum debt level for a Debt Relief Order increases from £30,000 to £50,000 in November 2026, bringing more people struggling with unmanageable debt within reach of this low-cost insolvency option.
3 min read →Articles
How-to
Where to begin, which parts to skip, and how to tell a rule from its exceptions. A method you can use on any law.
Explainer
The order in which rules apply, and what happens to a clause that goes against the law.
How-to
What to include, what to leave out, and how to prove it was received.
Explainer
Cost, time and control over the result, compared side by side.
FAQ
General answers with links to official sources. Not legal advice.
Official resources
Free debt advice and personalised debt solutions.
Free advice on managing and resolving personal debt.
Official information on bankruptcy and insolvency options.
Complaints about banks, lenders and debt collectors.