Debt Options Guide
Statute of Limitations on Debt in Canada
Updated
Each province sets a limitation period — the time a creditor has to sue over an unpaid debt. In most provinces it is two years from the last payment or acknowledgement of the debt; Quebec's is three. After it expires, the creditor generally can't win a lawsuit, but the debt isn't erased and collectors may still ask you to pay.
What can restart the clock
In several provinces, a payment or a written acknowledgement of the debt can restart the limitation period. Before paying an old debt, check whether it is past the limit in your province.
Limitation period vs credit report
The limitation period controls lawsuits. Credit reporting runs on a separate timeline set by Equifax and TransUnion — a collection can stay on your report for around six years even if it can no longer be sued on.
Exceptions
CRA tax debt and federal student loans follow federal rules with longer collection periods. Court judgments last much longer than the original debt.
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Related guides
- Your Rights When a Collection Agency CallsWhat collection agencies can and can't do in Canada, how to verify a debt, limitation periods by province, and which provincial regulator to complain to.
- How Long Debt Stays on Your Credit Report in CanadaHow long collections, consumer proposals, bankruptcies and late payments stay on Equifax and TransUnion credit reports in Canada, and how to check yours for free.
- Debt Settlement in CanadaHow to negotiate a debt settlement with a creditor or collection agency in Canada, how to protect yourself in writing, and the risks of for-profit debt settlement companies.
Sources
DebtDefender is an independent information site, not a Licensed Insolvency Trustee or law firm. This guide is general information, not advice for your situation. See our disclaimer.