Debt claims

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Introduction to debts

The concept of a debt is one that is so universally understood that it may seem unnecessary to define. However, in law the word ‘debt’ has a particular meaning and it is important to define what is caught by this term because debts are subject to rules that do not apply to other types of claim.

In essence, a debt is an agreed sum that is due under the terms of a contract, but that simple definition belies the complexity that can arise in categorising certain contractual claims. For detailed guidance on defining debt claims and distinguishing between claims in debt and claims in damages, as well as the role of a claim for an account stated, see Practice Note: Debt claims.

Discharging debts

Once a debt falls due for payment, the debtor

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