How long can a debt be collected in Ontario?

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In Ontario, most unsecured debts like credit cards or personal loans become untouchable after two years of non-payment or acknowledgment. Creditors can’t sue or garnish your wages during this time, but they can still contact you. Be cautious: if you acknowledge the debt, it resets the clock. It’s essential to stay informed about your debts. Reach out via phone, text, or live chat if you have any questions.

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Debt Collection Ontario Question

How long can a debt be collected in Ontario? How long can a debt be legally collected in Ontario before it’s no longer valid?

From: Anonymous Question
Location: Toronto, Ontario (ON)
Category: debt management plan

Debt Collection Ontario Answer

If we’re talking about most unsecured debts, like those credit card balances or personal loans, you’ve got a two-year window from the last time you made a payment or even just acknowledged that debt exists. During this time, your creditors can’t come after you legally, meaning no lawsuits or court orders for snatching your wages. But don’t kick back and relax just yet—the debt is still lurking in the shadows. Creditors can still ring you up, because while they can’t drag you to court, you still owe the dough. Oh, and one more thing—if you make a payment or give the nod that you owe the cash, that two-year ticker resets. So, while it’s tempting to ignore it all, it’s always smarter to know where you stand.

From: Insider Adam

Office of the Superintendent of Bankruptcy (OSB) Answer

In Ontario, the statute of limitations for collecting a debt is generally six years from the date of the last payment or acknowledgment of the debt, as outlined in the Limitations Act, 2002, S.O. 2002, c. 24, Sched. B, specifically under section 15. After this period, the debt is considered statute-barred, meaning it can no longer be legally enforced in court. If you’re dealing with debt issues, understanding your options, including a Consumer Proposal, can be essential in managing your financial situation effectively.

From: OSB Helper

Related Questions to How Long A Debt Can Be Collected In Ontario

Here are the top 5 most frequently asked questions related to the collection of debts in Ontario, along with concise answers:

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

• A debt collector can pursue a debt for up to two years from the date of the last payment or acknowledgment of the debt[1][3][5].

2. What happens to the debt after the two-year limitation period in Ontario?

• After the two-year period, the creditor cannot take legal action, but you still owe the debt and it can remain on your credit report for up to six to seven years[1][3][5].

3. Can debt collectors continue to call me after the two-year limitation period in Ontario?

• Yes, debt collectors can continue to call you to try to collect the debt, even though they cannot take legal action against you[1][3][5].

4. How does making a payment or acknowledging a debt affect the limitation period in Ontario?

• Making a payment or acknowledging the debt resets the two-year limitation period[1][3][5].

5. Are all types of debts subject to the two-year limitation period in Ontario?

• No, not all debts are subject to this limitation period; exceptions include government debts, secured debts, and family support orders[1][3][5].

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

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