How long can debt collectors try to collect in Canada?

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In Canada, the statute of limitations for debt collection ranges from 2 to 6 years based on the province or territory. Miss a payment, and the countdown starts. After this period, collectors can’t take you to court, but they might still contact you. It’s like that relative who just won’t stop checking in!

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Debt Collection Question

How long can debt collectors try to collect in Canada? I’m curious about how long debt collectors are legally allowed to pursue debts in Canada. Is there a statute of limitations?

From: Anonymous Question
Location: Markham, Ontario (ON)
Topic: credit-rebuilding

Debt Collection Answer

In Canada, debt collectors’ attempts to collect what you owe can stretch between 2 and 6 years, depending on where you live. For instance, if you’re in Alberta, British Columbia, New Brunswick, Ontario, or Saskatchewan, you’ve got a 2-year window. But if you’re hanging out in places like Manitoba, Nova Scotia, Newfoundland and Labrador, Prince Edward Island, Northwest Territories, Nunavut, or Yukon, it’s a 6-year stretch. Quebec keeps it a little more in the middle at 3 years. The clock starts ticking the moment you miss a payment or say, “Yep, I owe.” Once this period winds down, you’re safe from any court drama, but brace yourself, because those phone calls and love letters from collectors can keep coming, just like a relative who doesn’t know when to stop checking in.

From: Insider Scott

Office of the Superintendent of Bankruptcy (OSB) Answer

In Canada, the statute of limitations for debt collection varies by province, generally ranging from 2 to 6 years. For federal debts, the relevant statute is the Federal Real Property Act, which indicates a limitation period of 6 years (Royal Assent, 1990). In provinces like Ontario and Alberta, the limitation period is 2 years for most debts, while in British Columbia, it is 2 years as well (Limitation Act, SBC 2012, c. 13). Specific sections can be further referenced within each provincial statute for precise details regarding their application to debt collection practices.

From: OSB Helper

Related Questions

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

1. How long can a collection agency collect on a debt?

• A collection agency can technically collect a debt indefinitely, but they cannot take legal action after the statute of limitations, which varies by province, typically ranging from 2 to 6 years[1][3][5].

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

• In Ontario, the statute of limitations for debt collection is 2 years from the last payment or acknowledgement of the debt[1][3][5].

3. Can debt collectors contact me after the statute of limitations?

• Yes, debt collectors can still contact you after the statute of limitations has expired, but they cannot take legal action against you[1][3][5].

4. How long can creditors pursue a debt in different provinces?

• The statute of limitations varies by province: 2 years in British Columbia, Ontario, and several other provinces; 6 years in Manitoba, New Brunswick, and others; and up to 10 years in some cases in Alberta[1][3][5].

5. Do I still owe the debt after the statute of limitations expires?

• Yes, you still owe the debt even after the statute of limitations has expired, but creditors cannot take legal action to collect it[1][3][5].

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

References

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