Australian debt guide
How long can a debt be chased in Australia?
By DebtReply · Sources checked
The National Debt Helpline describes six years, or three in the Northern Territory, for certain old unsecured debts without payment or written acknowledgement. Court judgments and secured debts need separate consideration. These figures are not a countdown for every account. Gather the history and get advice before paying or admitting the debt.
Why is the date not enough?
The National Debt Helpline’s old-debt guide explains the qualifications around old unsecured claims and court judgments. That is why this site has no countdown that labels a debt unenforceable. A balance disappearing from a credit report is not a substitute for checking court records.
Which records should I collect?
Create a timeline for your adviser: when the account began, when payments occurred, when you received messages, and whether court papers were received. Mark uncertain dates as unknown. Keep the original records alongside your notes so you can distinguish a document from your recollection. Do not guess a date to make a form look complete.
What does the old-debt letter do?
The letter asks for account documents and details of any judgment. It does not declare that a limitation period has expired or promise a result. ASIC’s overview also highlights the complexity of old-debt collection. Read the warning in the builder and obtain advice before exporting. The last-payment field is a private preparation note, not part of the letter.
What can I do next?
- Gather the old account records and recent demand.
- Prepare a timeline without guessing missing dates.
- Ask an adviser how the relevant place, debt type and court history affect the claim.
- Check the draft with that advice in mind.
- Keep the response and any new documents together.
Example: build a timeline without deciding the outcome
This example shows preparation for advice, not a limitation-period calculation. Imagine you have an older account statement, a payment receipt and a new collector letter. Put each item on its own line. Copy the date printed on the document and describe what it records. Mark a payment you only remember as unconfirmed rather than placing it on an invented date.
Add a separate line for any written correspondence in which you discussed the account. Keep the actual wording for an adviser to read. If you do not know whether a judgment exists, write that as an unanswered question. The date of the new demand is one piece of the file; it does not establish the whole legal history.
The National Debt Helpline suggests asking for judgment details and checking them with the court. A clear file lets you ask what happened, when it happened and which evidence supports it. It does not let this website declare that collection is time-barred.
Why a simple countdown can mislead
ASIC describes a limitation period usually starting after default, with state differences and possible effects of later payment or acknowledgement. The National Debt Helpline's consumer explanation focuses on old unsecured debts and highlights judgments and secured claims separately. These explanations are reasons to check the facts, not interchangeable inputs for a universal calculator.
A missing entry on a credit report is also not a complete court-history check. Keep uncertainty visible and ask an adviser which court or records are relevant. Do not make a small payment simply to test whether an account is active.
What to review in a collector's response
Look for the original account, the records relied on, and any court details. If the reply states a conclusion without the records you requested, keep both documents and identify the gap for your adviser. Do not change your timeline to match a statement you have not verified. The builder's draft is a records request and never announces that the time limit has expired.
Put your next step into words
Use a free starting-point letter, then check that every detail fits your situation.
Write the letterCommon questions
Does six years always mean I can ignore it?
No. The relevant rules depend on the claim and its history. Court judgments and secured debts need separate consideration.
Does the builder calculate the time limit?
No. It requests records and directs you to advice. It does not decide whether a claim is statute-barred.
Is my last-payment note sent in the letter?
No. That field is for preparation in your browser only and is excluded from the generated letter.
Sources you can check
- Debt collection: old debts National Debt Helpline · Checked 18 October 2026
- Debt collection guidance ASIC · Checked 18 October 2026
This guide explains a process. It has not been reviewed as advice for your situation. How we use sources.