How long can a debt collector legally pursue old debt in Singapore?

Debt Collection Time Limits in Singapore: Understanding the Legal Framework

In Singapore, the legal pursuit of old debts is subject to specific time limits, known as the limitation period. This framework ensures that individuals are protected from endless collections for aged claims.

What is the Limitation Period for Debt Collection?

According to Singapore law, debt collectors can legally pursue overdue accounts for a period of six years from the date the debt originated. This means that if a creditor has not taken any active steps to recover a debt within six years of its inception, the debt becomes legally unenforceable.

What Happens After the Limitation Period Expires?

Once the limitation period expires, the debt is considered statute-barred, meaning that it cannot be legally enforced through the courts. Creditors may still attempt to collect the debt, but debtors are not legally obligated to make payments.

Exceptions to the Limitation Period

There are a few exceptions to the six-year limitation period for debt collection:

• Acknowledgment of Debt: If the debtor acknowledges the existence of the debt in writing, the limitation period may be reset.
• Part Payment: If the debtor makes a part payment towards the debt, the limitation period may also be reset.
• Fraud or Concealment: If the creditor fraudulently concealed the existence of the debt, the limitation period may be extended.

Protecting Your Rights as a Debtor

As a debtor, it is important to understand your rights under the limitation period:

• Do not acknowledge the existence of a debt you believe to be statute-barred.
• Do not make any part payments towards a statute-barred debt.
• If a creditor attempts to collect a statute-barred debt, you can legally contest their claim.

Conclusion

The limitation period for debt collection in Singapore provides individuals with legal protection against the indefinite pursuit of old debts. Creditors have six years to recover overdue accounts, after which the debt becomes statute-barred and legally unenforceable. Debtors should be aware of their rights and take steps to prevent creditors from illegally pursuing statute-barred debts.