At a glance
The statute of limitations on debt sets a deadline for creditors and collection agencies to sue you. Once that deadline passes, you still owe the money, but they lose the ability to take you to court.
The limitation period ranges from two to six years, depending on your province. It starts from the date of your last payment or the last time you acknowledged the debt.
Making even a small payment or admitting you owe the money resets the clock.
In this guide
Limitation periods by province and territory
Most provinces have a two-year limitation period. A few still use six years. Quebec sits at three.
| Province or territory | Limitation period | Legislation |
|---|---|---|
| Alberta | 2 years | Limitations Act, RSA 2000, c. L-12, s. 3(1)(a) |
| British Columbia | 2 years | Limitation Act, SBC 2012, c. 13, s. 6 |
| Manitoba | 2 years | The Limitations Act, CCSM c. L150, s. 6 |
| New Brunswick | 2 years | Limitation of Actions Act, SNB 2009, c. L-8.5, s. 5 |
| Nova Scotia | 2 years | Limitation of Actions Act, SNS 2014, c. 35, s. 8(1)(a) |
| Ontario | 2 years | Limitations Act, 2002, S.O. 2002, c. 24, s. 4 |
| Saskatchewan | 2 years | The Limitations Act, SS 2004, c. L-16.1, s. 5 |
| Quebec | 3 years | Civil Code of Quebec, Art. 2925 |
| Newfoundland and Labrador | 6 years | Limitations Act, SNL 1995, c. L-16.1, s. 6(1)(h) |
| Prince Edward Island | 6 years | Statute of Limitations, RSPEI 1988, c. S-7, s. 2 |
| Northwest Territories | 6 years | Limitation of Actions Act, RSNWT 1988, c. L-8 |
| Nunavut | 6 years | Limitation of Actions Act (inherited from NWT) |
| Yukon | 6 years | Limitation of Actions Act, RSY 2002, c. 139 |
Manitoba changed its limitation period from six years to two years on September 30, 2022. Many online sources still list Manitoba at six years.
Source: Manitoba – The Limitations Act, SM 2021, c. 44
There is no federal statute of limitations for consumer debt
Some websites claim there is a federal six-year statute of limitations on debt collection in Canada. That is wrong for private consumer debts like credit cards and personal loans.
The confusion comes from Section 32 of the Crown Liability and Proceedings Act. That section sets a six-year limit for legal proceedings by or against the federal Crown. It does not apply to debts between you and a private creditor.
Source: Crown Liability and Proceedings Act, R.S.C. 1985, c. C-50, s. 32
What resets the statute of limitations
The limitation period resets if you do any of the following:
Make a payment toward the debt, even a partial one. Acknowledge the debt in writing. In some provinces, even a verbal acknowledgment counts.
Collection agencies know this. Some will try to get you to confirm you owe the money or make a token payment. If you do, the clock starts over from that date.
This is why you should never confirm a debt or make a payment until you have verified the amount in writing and checked whether the limitation period has already passed.
What does not reset the clock
A collection agency calling you does not reset the limitation period. Receiving a letter does not reset it. Being contacted by a new collection agency or a debt purchaser does not reset it.
The debt changing hands from your original creditor to a collection agency does not start a new limitation period. The clock runs from your last payment or acknowledgment, regardless of who owns the debt.
What happens after the limitation period expires
Once the limitation period passes, you still owe the money. The debt does not disappear. But the creditor or collection agency can no longer sue you to collect it.
A collection agency can still call you, send letters, text you and email you about the debt. There is no time limit on contact. Some collection agencies will keep contacting you indefinitely.
The debt also stays on your credit report. A collection entry (rated R9, the worst possible rating) remains on your credit report for six years from the date of last activity on the account. That timeline runs independently of the statute of limitations.
Source: Equifax Canada – How long does information stay on my credit report?
Source: Financial Consumer Agency of Canada – How long information stays on your credit report
If you are judgment-proof
If you have no income and no assets, you are considered judgment-proof. Even if the limitation period has not expired, a creditor cannot collect money you do not have. Wage garnishment requires wages. A lien requires property.
Being judgment-proof is not a permanent solution. If your circumstances change, creditors can take action as long as the limitation period has not expired.
If you owe money to the same bank where you hold your accounts, the bank can exercise its right of set-off. The bank can withdraw money from your chequing or savings account to cover what you owe. The bank does not need a court order to do this.
What if a creditor sues you after the limitation period
If a collection agency files a lawsuit after the limitation period has expired, you must respond. File a Statement of Defence and raise the expired limitation period as your defence. The court will dismiss the claim.
If you ignore the lawsuit, the court enters a default judgment against you, even if the limitation period has expired. A default judgment gives the collection agency the power to garnish your wages, freeze your bank accounts and register a lien against your property.
Respond to every lawsuit. The limitation period only protects you if you raise it as a defence.
How collections affect your credit report
A debt sent to collections gets an R9 rating on your credit report. R9 is the worst possible rating. It tells lenders you did not pay.
That R9 stays on your credit report for six years from the date of last activity on the account. Paying the collection agency does not remove the entry. It changes the status to "paid," which is better than "unpaid," but the record stays for the full six years.
Source: Equifax Canada – How long does information stay on my credit report?
While a collection is on your report, you will find it harder to borrow money. If you are approved for credit, you will pay a higher interest rate.
You can get a free copy of your credit report from Equifax Canada and TransUnion Canada. Check the public records and collections sections. If you see a debt you do not recognize, dispute it with the credit bureau in writing.
Government debts have different rules
Provincial limitation periods apply to unsecured consumer debts like credit cards, personal loans and utility bills. Government debts follow their own rules.
The Canada Revenue Agency has the following collection time limits:
| Debt type | CRA limitation period |
|---|---|
| Income tax debt | 10 years |
| GST/HST debt | 10 years |
| Student loans (issued after August 2003) | 6 years |
| EI overpayments | 6 years |
| Student loans (issued before August 2003) | No limitation period |
| CPP/OAS overpayments | No limitation period |
Source: Canada Revenue Agency – Collections limitation period
The CRA also has powers that private creditors do not. The CRA can garnish your wages and freeze your bank account without going to court. The CRA can register a lien on your property through a Federal Court certificate without suing you.
Source: Canada Revenue Agency – Putting a lien on or seizing your assets
For payroll source deductions and GST/HST you collected but did not remit, the CRA holds a deemed trust. The money is legally considered to belong to the Crown. The CRA does not need to register anything to claim it.
Source: Canada Revenue Agency – Information on deemed trust
When collection agencies stop chasing you
There is no set timeline for when a collection agency gives up. Some stop after the limitation period expires. Others keep calling for years.
A collection agency is more likely to stop pursuing you if the debt is small (under $1,000), the limitation period has expired, you have no income or assets, or the cost of legal action outweighs what they would recover.
Debt purchasers like Canaccede and PRA Group buy portfolios of old debts for a fraction of the original amount. They make their money by collecting even a small percentage. These companies tend to be more persistent than the original collection agency because they own the debt outright and keep everything they collect.
You can look up any collection agency contacting you in our directory to verify they are registered and legitimate.
FAQ
Is my debt too old to be collected?
If the limitation period in your province has passed and you have not made a payment or acknowledged the debt, the collection agency cannot sue you. But they can still contact you about the debt. Check the table above for the limitation period in your province.
Does the statute of limitations apply to secured debt?
No. The statute of limitations applies to unsecured debts like credit cards, personal loans and utility bills. Secured creditors (mortgages, car loans) have a claim against the asset itself and can repossess it regardless of time limits.
Can a collection agency sue me for a debt from 10 years ago?
If the limitation period in your province has expired and you have not reset it by making a payment or acknowledging the debt, the collection agency cannot successfully sue you. You must raise the expired limitation period as a defence if they file a claim. If you ignore the lawsuit, you lose by default.
What happens if I make a payment on an old debt?
Making any payment, even $1, resets the statute of limitations. The full limitation period starts again from the date of that payment. Do not make a payment on an old debt without first checking whether the limitation period has already expired.
Does the statute of limitations apply to CRA debts?
No. CRA debts follow federal rules, not provincial limitation periods. Income tax and GST/HST debts have a 10-year collection period. Student loans issued after August 2003 have a 6-year period. Some government debts have no limitation period at all.
Can a debt collector restart the statute of limitations without my knowledge?
A collection agency cannot restart the limitation period on its own. Only your actions reset it: making a payment or acknowledging the debt. A collection agency calling you, sending letters, or selling the debt to another company does not affect the limitation period.
Does bankruptcy eliminate debts past the statute of limitations?
Bankruptcy eliminates most unsecured debts regardless of whether the limitation period has expired. If the limitation period on your debt has already passed and you have no income or assets, bankruptcy is usually unnecessary. Talk to a Licensed Insolvency Trustee before making that decision.
How do I find out when my limitation period started?
Check the date of your last payment to the creditor or collection agency. If you never made a payment, the limitation period starts from the date the debt became due. Your credit report shows the date of last activity, which is a good starting point. Request your free credit report from Equifax Canada or TransUnion Canada.