Debt Limitation Period in Singapore: How Long You Have to Sue for an Unpaid Business Debt

Short answer: In Singapore, a court claim for an unpaid business debt under a contract must be started within 6 years from the date the cause of action accrued, usually when payment fell due (Limitation Act 1959, section 6). A signed written acknowledgment or a part payment restarts the clock. Small Claims Tribunals claims must be filed within 2 years.

The debt limitation period in Singapore decides whether an overdue invoice is still a live claim or a write-off. This guide covers the 6-year rule, when the clock starts, how an acknowledgment or part payment resets it, the periods for judgments, secured loans and the Small Claims Tribunals, and how to diarise the dates.

Raffles Corporate Services works with a panel of experienced Singapore law firms who offer cost-effective and efficient legal service and advice. This article is general information only and is not legal advice.

What is the debt limitation period in Singapore?

The debt limitation period in Singapore is the deadline for starting a court action to recover money owed. For an ordinary trade debt under a contract it is 6 years from the date the cause of action accrued.

The rule sits in section 6(1) of the Limitation Act 1959. It says that actions founded on a contract or on tort “shall not be brought after the expiration of 6 years from the date on which the cause of action accrued”. A “cause of action” is the set of facts that gives you the right to sue, and for an unpaid invoice it usually arises when the debtor fails to pay on the due date.

The period is a deadline for starting your claim in court. Reminders or a letter of demand do not stop the clock. In the State Courts and the High Court, a money claim is usually started by an originating claim under Order 6, rule 1 of the Rules of Court 2021, which must be used where the material facts are in dispute. Under section 4 of the Act, the time bar operates only if the debtor expressly pleads it as a defence, but a debtor’s lawyer will plead it whenever the dates allow. The Act does not set a separate, longer period for contracts made by deed: section 6(1)(a) covers actions founded on a contract.

When does the 6-year clock start for an unpaid invoice?

Time starts on the date the cause of action accrued, which for a trade debt is generally the date payment became due and was not made. It does not start on the date you sent the invoice if you gave credit terms.

The Act does not define accrual for each type of contract, so it depends on what was agreed:

These are illustrations only. Repayment-on-demand or acceleration clauses can move the accrual date, so work from the earliest arguable date.

How does an acknowledgment of debt or part payment restart time?

If the debtor acknowledges the debt in a signed written document, or pays any part of it, the right of action is treated as accruing afresh on the date of that acknowledgment or the last payment. A new 6-year period runs from there.

This rule has three parts:

1. The reset itself (s 26(2)): Where a right of action has accrued to recover “any debt or other liquidated pecuniary claim”, and the person liable acknowledges the claim or makes any payment in respect of it, the right is deemed to accrue on and not before the date of the acknowledgment or the last payment.
2. The formalities (s 27): An acknowledgment must be in writing and signed by the person making it. A phone call or an unsigned verbal promise to pay will not do. The acknowledgment or payment can be made by the debtor’s agent, and must be made to you or your agent.
3. Who is bound (s 28): An acknowledgment binds only the person who gave it and their successors, not anyone else (s 28(4)). A payment, by contrast, binds all persons liable for the debt (s 28(6)). If you have two co-debtors and only one signs an acknowledgment, the clock may still be running against the other.

Useful acknowledgments include a signed balance confirmation for audit, a signed instalment plan, or a signed letter admitting the amount owed. Whether an email with a typed name counts as “signed” can be argued either way, so a signed document is safer. A payment of interest also counts as a payment towards the principal debt (s 26(3)).

The Act also refers to acknowledgments and payments made after the limitation period has expired (ss 28(5) and 28(7)) and limits whom they bind. Whether a late acknowledgment revives a claim that is already time-barred, and on what terms, depends on the facts, so speak to a lawyer before relying on one.

How long do you have to enforce a judgment debt, and what about secured loans?

Once you have a court judgment, a separate 12-year period applies to an action upon that judgment, but arrears of interest on the judgment debt can only be recovered for 6 years after each amount of interest fell due.

Section 6(3) of the Limitation Act states both limbs. The 12 years run from the date the judgment became enforceable. Enforcement itself is by an enforcement order under Order 22, rule 2 of the Rules of Court 2021, which has its own procedural rules; see our guide to enforcing a court judgment against a Singapore company.

Under section 3, the Act does not apply where another written law sets its own limitation period, so check the statute governing your claim.

Is the time limit shorter in the Small Claims Tribunals?

Yes. The Small Claims Tribunals (SCT) can only hear a claim filed within 2 years after the cause of action accrued, even though the general limitation period for a contract claim is 6 years.

Section 5(3)(b) of the Small Claims Tribunals Act 1984 provides that the tribunal’s jurisdiction does not extend to a claim brought “after the expiry of 2 years after the date on which the cause of action accrued”. The same section caps claims at the prescribed limit of S$20,000, which can rise to S$30,000 if both parties sign a memorandum agreeing to it (ss 2 and 5(4)). The Judiciary’s guide to filing a small claim confirms that companies can file, that lawyers are not allowed to represent parties at the SCT, and that most SCT cases conclude within 4 months of filing.

Missing the 2-year SCT window does not end your claim: you can still sue in the State Courts within 6 years, but that route is slower and usually involves a solicitor (see which court to sue a company in). The official SCT filing fees for a company claimant are:

Source: Singapore Courts, “How to file and serve a small claim”, fees as published when checked on 24 October 2026. Our earlier guide explains how an SCT claim runs for a company.

Can the limitation period be extended for fraud, mistake or disability?

Yes, in limited cases. Where the claim is based on the defendant’s fraud, the right of action was concealed by fraud, or the claim is for relief from a mistake, time does not start until the claimant discovered the fraud or mistake, or could have with reasonable diligence (s 29(1)).

Section 29(2) protects a third party who bought property in good faith and for value. Disability under section 24 (a claimant who was a minor or lacked mental capacity) rarely matters for a company creditor. Under section 31, a set-off or counterclaim is treated as a separate action commenced on the same date as the main action, so a debtor’s counterclaim can be time-barred even when your claim is not.

How should an SME creditor diarise limitation dates?

Record a limitation date for every overdue receivable when it first becomes overdue, and review the list each month. A simple system catches most problems long before they become expensive.

1. For every invoice, record the due date (invoice date plus credit terms) in your accounting system or aged receivables report.
2. Calculate two dates: due date plus 2 years (the last date for an SCT claim) and due date plus 6 years (the general limitation date).
3. When the debtor makes a part payment, record the date and update both limitation dates for that debt.
4. When the debtor signs an acknowledgment, file a scanned copy with the invoice and update the dates. Keep the original signed document.
5. Ask long-overdue debtors to sign a balance confirmation at your financial year end. This is routine for audit and doubles as an acknowledgment.
6. Check the debtor’s ACRA business profile so you sue the right legal entity and spot a strike-off or winding up early.
7. Escalate any debt within 6 months of either limitation date to a solicitor. Settlement talks do not stop the clock.

Keep these documents together for each overdue debt:

Our free compliance deadline calculator gives your financial year-end filing dates, a sensible moment to send balance confirmations.

What does your corporate secretary prepare, and what does the solicitor file?

Your corporate secretary or accounting provider keeps the records that prove the debt and the dates, while a solicitor issues and runs any court claim. Court proceedings are conducted by a Singapore Advocate and Solicitor.

Lawyers cannot appear at the SCT, so a company attends through an authorised representative with a letter of authorisation on company letterhead, which we can prepare.

Costs depend on the route. SCT fees are fixed (table above). For a State Courts claim, the main cost drivers are the claim amount, whether the debt is disputed, whether summary judgment (Order 9, rule 17) is available, the number of hearings, and enforcement steps afterwards. Ask the solicitor for a written fee estimate covering each stage before you file.

After judgment, the 12-year and 6-year periods in section 6(3) start to matter, so diarise them as well. A debt judgment does not itself require an ACRA lodgement. The follow-up is in your accounts: if the debt proves irrecoverable, see our guide to provisioning for bad debts and writing off receivables.

What are the common limitation mistakes creditors make?

The most common mistake is assuming that chasing a debt keeps it alive. Only filing a claim, a signed written acknowledgment, or a payment affects the clock.

• Counting from the invoice date instead of the due date, or the reverse, and getting the deadline wrong by the length of the credit term.
• Treating a phone call or WhatsApp promise to pay as an acknowledgment. Section 27(1) requires writing and a signature.
• Getting an acknowledgment from one co-debtor or a guarantor and assuming it binds the others (s 28(4)).
• Letting the 2-year SCT window pass, pushing a small debt into a more expensive court.
• Leaving a judgment unenforced for years and losing interest arrears older than 6 years (s 6(3)).
• Writing off a debt without first checking whether a claim is still in time.

Frequently asked questions

Is a debt automatically cancelled after 6 years in Singapore?

No. The Limitation Act 1959 bars the court action, not the debt itself, and under section 4 the time bar operates only if the debtor expressly pleads it as a defence. Treat a claim older than 6 years without a reset as very hard to recover through the courts.

Does a letter of demand stop the limitation period?

No. A letter of demand does not stop or reset the clock. Only commencing proceedings, a signed written acknowledgment by the debtor, or a part payment affects the period under sections 26 and 27.

Does an email admitting the debt count as an acknowledgment?

Section 27(1) requires an acknowledgment in writing and signed by the person making it. Whether a particular email satisfies the signature requirement can be disputed, so ask the debtor to sign a short letter or balance confirmation instead.

How long do I have to file in the Small Claims Tribunals?

Two years from the date the cause of action accrued, under section 5(3)(b) of the Small Claims Tribunals Act 1984. The claim must also be within the S$20,000 limit, or S$30,000 if both parties sign a memorandum of consent.

Is the limitation period longer for a deed or a secured loan?

For a deed, no: the Singapore Act applies the same 6-year period to all actions founded on a contract and has no separate rule for deeds. For money secured by a mortgage or charge, section 21(1) gives 12 years from when the right to receive the money accrued.

Last reviewed: 24 October 2026. The Editorial Team, Raffles Corporate Services.