What is a relevant claim

Creditors covered by the 20-year rule (eg, by an order of a tribunal or an authority authorised by legislation to order that a debt is due – which includes benefit overpayments owed to HMRC or the DWP) can take court action to recover the debt they say they are owed. If they take court action, the prescription period begins again. This means clients can, in effect, have debts which are more than 20 years old.

Creditors originally covered under the five-year rule, on taking a client to court or getting a decree or petitioning for their sequestration, have 20 years to enforce any debt owed.

If a client is sequestrated, the debt may be discharged. If it does not discharge, the act of sequestrating begins the clock again for those debts.