Limitation Periods by Province
| Province / Territory | Limitation Period | Legislation |
|---|---|---|
| Ontario | 2 years | Limitations Act, 2002 |
| British Columbia | 2 years | Limitation Act |
| Alberta | 2 years | Limitations Act |
| Saskatchewan | 2 years | The Limitations Act |
| Manitoba | 6 years | The Limitation of Actions Act |
| Quebec | 3 years | Civil Code of Quebec |
| Nova Scotia | 6 years | Limitation of Actions Act |
| New Brunswick | 6 years | Limitation of Actions Act |
| Newfoundland & Labrador | 6 years | Limitations Act |
| Prince Edward Island | 6 years | Statute of Limitations |
| Northwest Territories | 6 years | Limitation of Actions Act |
| Yukon | 6 years | Limitation of Actions Act |
| Nunavut | 6 years | Limitation of Actions Act |
When Does the Clock Start?
| Event | Clock Starts |
|---|---|
| Missed payment | Date of last payment or default |
| Written acknowledgment | Date you acknowledged the debt in writing |
| Partial payment | Date of the last payment |
| Account charged off | Date of last activity |
What Resets the Clock
| Action | Resets Clock? | Province Notes |
|---|---|---|
| Making a payment | Yes (most provinces) | Even $1 can restart |
| Written acknowledgment of debt | Yes | Signing anything confirming the debt |
| Verbal promise to pay | Varies | Some provinces count verbal, others don’t |
| Collector contacting you | No | Contact alone doesn’t reset |
| Debt being sold to new collector | No | Clock continues from original date |
| Creditor suing you | No | Lawsuit itself doesn’t reset the period |
What Does NOT Reset the Clock
| Action | Why It Doesn’t Reset |
|---|---|
| Collection agency calling you | Communication is not acknowledgment |
| Receiving a collection letter | Passive receipt doesn’t count |
| Checking your credit report | Viewing information is not activity |
| Disputing the debt | Disputing is not acknowledging |
| Creditor reporting to credit bureau | Reporting is creditor action, not yours |
After the Limitation Expires
What Collectors Can Still Do
| Action | Allowed? |
|---|---|
| Call and ask for payment | Yes |
| Send letters requesting payment | Yes |
| Report to credit bureau | Yes (within reporting period) |
| Negotiate a settlement | Yes |
What Collectors Cannot Do
| Action | Allowed? |
|---|---|
| Sue you to collect | No |
| Obtain a court judgment | No |
| Garnish wages through court | No |
| Seize assets through court | No |
| Threaten to sue | No (it would be a false threat) |
Limitation Period vs Credit Reporting Period
| Limitation Period | Credit Reporting Period | |
|---|---|---|
| What it controls | Whether you can be sued | How long it stays on your credit report |
| Length | 2-6 years (by province) | 6-7 years (by province) |
| Starts from | Date of last activity/payment | Date of first delinquency |
| Can be reset | Yes (payment, acknowledgment) | No (set by original delinquency date) |
| After expiry | Can’t be sued | Removed from credit report |
Special Cases
Federal Debts (CRA)
| Debt Type | Limitation | Notes |
|---|---|---|
| Income tax | 6 years (10 for assessment) | CRA has enhanced collection powers |
| GST/HST | 6 years | Same enhanced powers |
| Student loans (federal) | 6 years | Provincial limitation may not apply |
| EI overpayments | 6 years | CRA can intercept tax refunds |
Important: CRA can garnish wages, seize bank accounts, and intercept tax refunds without a court order β the limitation period is less protective for tax debts.
Student Loans
| Situation | Limitation |
|---|---|
| Federal student loans (NSLSC) | 6 years from last payment |
| Provincial student loans | Varies by province |
| Bankruptcy protection | Must be 7 years out of school before student loans can be discharged in bankruptcy |
Secured Debts
| Debt Type | Limitation Notes |
|---|---|
| Mortgage | Limitation applies to deficiency after foreclosure |
| Car loan | Limitation applies after repossession and sale |
| Secured line of credit | Creditor can still seize collateral |
What to Do If You’re Contacted About Old Debt
Step-by-Step
| Step | Action |
|---|---|
| 1 | Don’t make any payment or acknowledgment |
| 2 | Request written verification of the debt |
| 3 | Check the date of last activity |
| 4 | Determine if limitation has expired in your province |
| 5 | If expired, consider sending a written notice that the debt is statute-barred |
| 6 | If unsure, consult a credit counsellor (free) or lawyer |
Sample Response for Statute-Barred Debt
| Element | What to Include |
|---|---|
| Your info | Name, address, reference number |
| Statement | “This debt is statute-barred under [your province’s act]” |
| Request | “Cease all collection activity” |
| Warning | “Any attempt to sue will be defended on limitation grounds” |
| Delivery | Send by registered mail, keep a copy |
Province-Specific Notes
Ontario (2 years)
| Detail | Info |
|---|---|
| Legislation | Limitations Act, 2002 |
| Basic limitation | 2 years from discovery of claim |
| Ultimate limitation | 15 years (absolute) |
| Acknowledgment restarts? | Yes |
| Partial payment restarts? | Yes |
British Columbia (2 years)
| Detail | Info |
|---|---|
| Legislation | Limitation Act (2013) |
| Basic limitation | 2 years |
| Ultimate limitation | 15 years |
| Key difference | Written acknowledgment must be clear and explicit |
Quebec (3 years)
| Detail | Info |
|---|---|
| Legislation | Civil Code of Quebec, Art. 2925 |
| Basic limitation | 3 years |
| Key difference | Civil law system (different from common law provinces) |
| Interruption | Lawsuit or acknowledgment restarts the clock |