By Teejae Keeble
If you’ve lent someone money and they haven’t paid you back, you might be wondering how long you have to take legal action. In New South Wales (NSW), the Limitation Act 1969 (NSW) sets time limits—called limitation periods—on how long you have to recover a debt. If you wait too long, you could lose the legal right to sue.
In most cases, if someone owes you money, you have six years to start court proceedings to recover it. This six-year countdown starts from the day the loan becomes due.
Critically, if the loan was made with no agreed repayment date, and it is said to be “payable on demand”, the rules are a little different, and the limitation period begins to run from the date of the advance —and this is where many people get caught out.
The decision in a case called Young v Queensland Trustees Ltd (1956) helps explain how these time limits work when no clear repayment date is set for a loan.
What Happened in Young v Queensland Trustees Ltd?
In this 1956 High Court case, a man had lent money without a specified repayment date. He never asked for it back during his lifetime. After he died, the people managing his estate tried to recover the money—but it had been many years since the loan was made.
The Court decided that:
In this case, because too much time had passed, the estate couldn’t recover the money.
What Does This Mean for You?
If you’ve lent someone money—especially without a written agreement or a clear repayment date—you should:
If you have lent money without specifying a date for repayment, don’t assume you can ask for your money back “whenever you want”. If too much time passes, the law may stop you from taking legal action—even if the person still owes you the money.
If you are owed money and aren’t sure what your options are, our team can help you understand your rights and guide you through the process. Contact our team on 02 4222 2666 for a confidential chat about your situation.
