Does ICBC debt go away after 7 years?

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Nope, ICBC debt doesn’t just vanish after seven years in British Columbia. While a two-year limitation period might shield you from legal pursuit if unpaid, it lingers on your credit report for up to seven years, affecting your credit score. It’s crucial to understand these nuances to better manage your financial health. Reach out via phone, text, or live chat if you have any questions.

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Icbc Debt Question

Does ICBC debt go away after 7 years? I’ve heard that ICBC debt might go away after seven years, and I want to confirm if that’s true.

From: Anonymous Question
Location: Winnipeg, Manitoba (MB)
Category: credit rebuilding

Icbc Debt Answer

Nope, ICBC debt doesn’t just disappear after seven years. In British Columbia, a two-year statute of limitations might mean your debt isn’t legally chased if you don’t pay or acknowledge it within that period, but it can still hang out on your credit score agencies report for up to six or seven years. This means even if the debt is technically off the hook, it can still throw a wrench into your credit score for a while.

From: Insider Scott

Office of the Superintendent of Bankruptcy (OSB) Answer

ICBC debt does not automatically go away after seven years. While the limitation period for collecting most debts in Canada is typically six years, which may extinguish the creditor’s ability to sue for the debt, this does not eliminate the obligation itself. According to the Limitation Act, specifically in the context of provincial legislation, there could be factors that affect the enforceability and status of the debt. It’s essential to note that if the debt remains unaddressed, ICBC may still pursue collection actions, and the debt will likely continue to appear on your credit report for an extended period. For a definitive assessment regarding your situation, consulting a debt expert or legal professional is advisable.

From: OSB Helper

Related Questions to Icbc Debt Gooing Away After 7 Years

Here are the top 5 most frequently asked questions related to debt and the statute of limitations in the context of ICBC debt or similar consumer debts in Canada:

1. Does ICBC debt go away after 7 years?

No, ICBC debt does not necessarily go away after 7 years; it is subject to the province’s statute of limitations, which is 2 years in British Columbia.

2. What is the statute of limitations on debt in British Columbia?

The statute of limitations on debt in British Columbia is 2 years from the date of the last payment or acknowledgment of the debt.

3. Can a creditor still collect a debt after the statute of limitations has expired?

No, a creditor cannot collect a debt through legal action after the statute of limitations has expired, although they may still attempt to contact you for payment.

4. How does acknowledging a debt affect the statute of limitations?

Acknowledging a debt, either through payment or written confirmation, restarts the statute of limitations period.

5. Are government debts, such as tax debts or student loans, subject to the same statute of limitations?

No, government debts like tax debts and student loans have different limitation periods, often longer than the provincial statute of limitations, such as 6 years for personal income tax debts[3][5].

If you have a question about debt see our debt questions or ask your own debt related question.

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