Key facts
- Contract claims, including most unpaid invoices and loans, must be brought within 6 years (Limitation Act s 6(1)(a)).
- An action on a judgment must be brought within 12 years; judgment interest arrears are recoverable for 6 years (s 6(3)).
- A signed written acknowledgment or a part payment restarts the clock from that date (ss 26(2) and 27(1)).
- An acknowledgment made after the 6 years have run can still restart time (Fairview v Ong & Ong [2014] SGCA 5).
- Small Claims Tribunals claims must be filed within 2 years.
The main time limits
The Limitation Act 1959 sets how long you have to start a court claim. Miss the deadline and the debtor can use it as a complete defence, however clear the debt.
| Type of claim | Time limit | Where it comes from |
|---|---|---|
| Contract, including unpaid invoices and loans | 6 years from when the cause of action accrued | Limitation Act s 6(1)(a) |
| Tort (other than personal injury) | 6 years | s 6(1)(a) |
| Action on a judgment | 12 years from when the judgment became enforceable | s 6(3) |
| Arrears of interest on a judgment debt | 6 years from when the interest fell due | s 6(3) |
| Small Claims Tribunals claim | 2 years from the event that creates the claim | Small Claims Tribunals |
The clock starts when the cause of action accrued, which is when you could first have brought the claim. Where the arrangement is complicated, such as instalments or a running account, ask a lawyer to work out the date.
Note the shorter limit for the Small Claims Tribunals. A debt that is 3 years old may still be within the 6 year limit for a court claim but too old for the Tribunals.
How acknowledgment and part payment restart the clock
Section 26(2) of the Limitation Act covers debts and other fixed money claims. If the person liable acknowledges the claim or makes any payment towards it, the right of action is treated as accruing on the date of that acknowledgment or the last payment. In practice, the 6 years start again from that date.
Section 27(1) adds a formal rule: the acknowledgment must be in writing and signed by the person making it. A verbal promise to pay does not restart the clock.
The Court of Appeal has said the debt must be admitted as still due, although the exact amount need not be stated if it can be worked out from other evidence. It has also held that an acknowledgment made after the limitation period has expired can still restart the clock (Fairview Developments v Ong & Ong [2014] SGCA 5).
What "time barred" means
A time barred debt is one where the limitation period has run out. Section 4 of the Act says the limitation does not bar an action unless it is expressly pleaded as a defence. The debtor has to raise it.
- For the creditor: if the debtor raises the defence, the claim fails in court, however strong the paperwork.
- For the debtor: the defence only helps if you raise it. Signing a fresh written acknowledgment can restart the clock, even after the 6 years have run.
Section 29 of the Act deals separately with postponing the limitation period in cases of fraud or mistake. If you think that applies, get legal advice.
Practical tips for creditors
- Diary the deadlineFor each overdue account, note the date payment fell due and the date 6 years later. For small claims, note the 2 year date.
- Get acknowledgments in writing and signedA signed payment plan, signed statement of account or signed letter admitting the balance is the safest form. Whether a chat message or email counts as signed can be argued, so do not rely on it alone.
- Record every part paymentKeep bank records showing the date, the amount and what it was paid towards.
- Act well before the deadlineA letter of demand does not stop the clock. Only starting a claim does. If the deadline is close, speak to a lawyer.
- Enforce judgments promptlyThe 12 year period is a ceiling, not a target. See enforcing a judgment.
Where a debt collection company helps
Speedy is a debt collection company, not a law firm. We cannot sue for you, file claims or give legal advice, and we cannot extend a limitation period. Tell us the key dates when you send the case. We work towards the thing that most often protects an old debt: a signed acknowledgment or a payment plan the debtor actually keeps. If your debt is getting old, start with our debt recovery service before the deadline gets close.