Limitation period for simple contract:

Limitation periods for unsecured personal loans and credit cards and the majority of debts sold or referred to a collection agency will arise from simple contracts.  In all states the limitation period for this type of debt is 6 years, except the Northern Territory where it is 3 years.

Limitation period for court judgment:

These are debts following a court judgment

All states are 12 years except South Australia and Victoria where it is 15 years.

The limitation period start date:

This usually starts at the time the debt is entered into.  However it is not always that straight forward.  If a payment arrangement is entered into or the debtor acknowledges the debt in writing the period of limitation recommences at this time.

There is a section in the ASIC / ACCC Debt Collection Guidelines around collecting on statute barred debts, I encourage all businesses that have an older debtors ledger to ensure that you are not following up on these types of debt and to have a good read of the guidelines.

Please find a copy of this document below.