A limitation period is the time a creditor has to sue you for an unpaid debt. Once it has passed, the creditor or a collection agency can’t get a court judgment, so it can’t garnish your wages or seize assets through the courts. The debt itself doesn’t disappear: collectors can still ask you to pay, and it can stay on your credit report until the bureau’s reporting period ends. Each province and territory sets its own period in its own law. This page lists them, explains when the clock starts and what restarts it, and covers what collectors can and can’t do afterwards. The debt strategies hub lists the other guides.
Limitation periods by province and territory
| Province / territory | Basic limitation period | Law |
|---|---|---|
| Ontario | 2 years | Limitations Act, 2002 |
| British Columbia | 2 years | Limitation Act |
| Alberta | 2 years | Limitations Act |
| Saskatchewan | 2 years | The Limitations Act |
| Manitoba | 2 years | The Limitations Act (in force since September 30, 2022) |
| Quebec | 3 years | Civil Code of Québec |
| Nova Scotia | 2 years | Limitation of Actions Act |
| New Brunswick | 2 years | Limitation of Actions Act |
| Newfoundland and 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 |
Which province’s law applies can depend on where you lived and on the terms of the agreement; a lawyer can say which applies if you’ve moved.
When the clock starts
For a consumer debt, the period generally runs from the day the creditor knew or ought to have known it had a claim, which in practice is usually the missed payment or default that wasn’t made good. Under the modern “discoverability” acts (Ontario, B.C., Alberta and others) that is the starting point for the basic 2-year period. Ontario and British Columbia also have an ultimate period of 15 years, after which a claim is barred whatever the creditor knew.
What restarts the clock
The two actions that commonly restart a limitation period on a debt are:
- a payment, including a small partial payment, which in many provinces is treated as acknowledging the debt;
- a written acknowledgment that you owe it, signed by you.
The rules on what counts differ between provinces. British Columbia, for example, requires the acknowledgment to be in writing and signed, and a verbal promise generally doesn’t restart the period in the common-law provinces. Quebec’s Civil Code works differently: an acknowledgment of the debt or a court claim interrupts the 3-year period.
Some things don’t restart it:
- a collector phoning you or sending letters;
- the debt being sold to another agency (the new owner inherits the old dates);
- you disputing the debt;
- the creditor reporting the account to a credit bureau.
This is why a collector calling about an old debt may ask for a small “good faith” payment or a signed confirmation. Before paying or signing anything on an old debt, checking the date of the last payment against the table above shows whether the period has already run.
After the limitation period expires
| A collector can still | A collector can no longer |
|---|---|
| Ask you to pay, by phone or letter, within the provincial contact rules | Sue you and win, if you raise the limitation period as a defence |
| Accept a voluntary payment or settlement | Get a judgment to garnish wages or seize assets |
| Leave the account on your credit report for the bureau’s reporting period | Threaten a lawsuit it can’t bring (that would be misleading) |
A lawsuit filed after the period isn’t automatically thrown out: the limitation period is a defence that you raise in your response to the claim. Responding to any court claim by its deadline matters even when the debt is old. The provincial rules on how collectors may contact you, and how to make them stop, are covered in debt collection rights in Canada.
Limitation period vs credit reporting period
These are separate clocks. The limitation period, set by provincial law, controls whether you can be sued. The credit reporting period, set by Equifax and TransUnion, controls how long the account stays on your report and isn’t extended by the limitation rules. An old debt may drop off your credit report before the limitation period ends, or stay on it after.
Debts with different rules
- Taxes and other debts to the CRA aren’t covered by provincial limitation periods: the federal government has its own collection periods and can collect without going to court. What happens if you don’t pay the CRA covers CRA collections.
- Federal student loans are collected under federal law, with the CRA taking over loans in default; see what happens if you can’t pay your student loan.
- Secured debts work differently: a lender with security can take the property, and the limitation period mainly affects a claim for any shortfall after the property is sold.
- Court judgments last much longer than the original debt, so once a creditor has a judgment, the original limitation period no longer protects you.
Responding to a collector about an old debt
- Ask for the details in writing: the original creditor, the account number, the amount, and the date of the last payment.
- Avoid paying or signing anything that acknowledges the debt until you’ve checked the dates.
- Compare the date of the last payment with your province’s period.
- If the period has passed, a short written reply stating that the debt is statute-barred under your province’s law, and asking the collector to stop contacting you, puts your position on record; keep a copy and proof of sending.
- If you’re unsure, a legal clinic, a lawyer, or a free session with a non-profit credit counsellor can help before you respond.
If the debt is within the period and you want to deal with it, how to negotiate debt covers settlements and written agreements.