How long before a debt is uncollectible in Canada?

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The time you have to legally collect debt in Canada varies: 2 years in Alberta, BC, New Brunswick, Nova Scotia, Ontario, and Saskatchewan; 3 years in Quebec; and 6 years in Manitoba and other regions. Federal debts like student loans follow a 6-year rule. Remember, the timer resets if you pay or acknowledge debt. Unsecured debts follow these rules, whereas secured or government debts differ. Old debts can affect your credit for 7 years. Reach out via phone, text, or live chat if you have any questions.

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Debt Uncollectible Canada Question

How long before a debt is uncollectible in Canada? How long does a debt have to be unpaid before it becomes uncollectible under Canadian law?

From: Anonymous Question
Location: Vancouver, British Columbia (BC)
Category: debt settlement

Debt Uncollectible Canada Answer

In Canada, when you’re trying to figure out how long you have to take legal action to collect a debt, it really depends on where you are. In places like Alberta, British Columbia, New Brunswick, Nova Scotia, Ontario, and Saskatchewan, you’re looking at 2 years. If you’re in Quebec, it’s a bit longer, at 3 years. Meanwhile, Manitoba, Newfoundland and Labrador, the Northwest Territories, Nunavut, Prince Edward Island, and Yukon give you up to 6 years. Federal debts, like student loans and taxes, also stick to that 6-year rule. It’s crucial to know that the clock starts ticking when the first payment’s due, and if you acknowledge or pay any part of it, that timer resets.

For unsecured debts, these are the ground rules, but if you’re dealing with secured debts or owing the government for things like taxes or child support, the rules change. Even when that time’s up, collectors might not be able to take you to court, but don’t be surprised if they still call you about it. And remember, even an old debt can hang around on your credit report for up to 7 years. Got questions? Feel free to reach out by phone, text, or live chat.

From: Insider Adam

Office of the Superintendent of Bankruptcy (OSB) Answer

In Canada, a debt becomes uncollectible after six years from the date of the last payment or acknowledgement of the debt, as per the Limitations Act in various provinces. For federal debts, the limitation period may vary, but typically follows this six-year guideline. Relevant provisions can be found in the following sources:

• The Limitations Act, RSC 1985, c B-3.
• Applicable provincial regulations relating to limitation periods.

Each province may have specific statutes that confirm this six-year limit or provide additional details.

From: OSB Helper

Related Questions to How Long Before A Debt Is Uncollectible In Canada

Here are the top 5 frequently asked questions related to the collectibility of debt in Canada, formatted as requested:

1. How long can a debt collector pursue a debt?

• A debt collector can technically pursue a debt indefinitely, but they cannot take legal action after the statute of limitations period, which varies by province (e.g., 2 years in Ontario, 2 years in British Columbia)[1][2][4].

2. What is the statute of limitations on debt collection in different provinces?

• The statute of limitations varies by province, ranging from 2 years in British Columbia and Ontario to 6 years in Manitoba and New Brunswick, among other variations[1][2][4].

3. Can a debt collector take legal action against me after the statute of limitations expires?

• No, a debt collector cannot take legal action against you after the statute of limitations period has expired, although they can still attempt to collect the debt through other means[1][2][4].

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

• Acknowledging a debt, through partial payments, written acknowledgments, or admissions, can reset the statute of limitations period[4].

5. How long does a debt stay on my credit report?

• A debt typically stays on your credit report for 6-7 years from the date of the last payment or acknowledgment[4].

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

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