Statute of Limitations on Debt in Canada 2025

Updated March 2025 · 9 min read · bremo.io

Every debt in Canada has a limitation period — a window of time during which a creditor can take legal action to collect. Once this period expires, the debt is "statute-barred": the creditor can no longer successfully sue you in court. This doesn't make the debt disappear, but it does significantly limit what a creditor can do to collect it.

Limitation Periods by Province

Note: Court judgments (debts you've already been sued for and lost) have longer enforcement periods — typically 10 years in most provinces, sometimes renewable.

When Does the Clock Start?

The limitation period generally begins from the later of:

• The date the debt became due (e.g., when you missed your first payment)
• The date the creditor "discovered" or reasonably ought to have discovered the claim

For credit card debt, the clock typically starts when you stop making payments and the account goes into default.

What Resets the Clock?

Actions that typically restart the clock:

• Making any payment — even a small one
• Signing anything acknowledging the debt exists
• A written acknowledgment of the debt (in some provinces)

Actions that do NOT restart the clock:

• The creditor calling you about the debt
• The debt being sold to a collection agency
• The debt appearing on your credit report

Statute of Limitations vs Credit Report

These are completely separate timelines. A debt can be statute-barred (legally unenforceable) but still appear on your credit report. Credit bureau reporting periods are:

• Most derogatory marks: 6–7 years from the date of first delinquency
• Collections: 6 years from date of last activity (Equifax); 6 years from date reported (TransUnion)
• Bankruptcy: 6 years after discharge (first bankruptcy)

CRA Tax Debt and Limitations

CRA tax debt operates under federal law, not provincial limitation acts. CRA has up to 10 years to legally collect tax assessments in most cases, and there are various ways the clock can be extended. CRA also has exceptional collection powers that don't require a court judgment. Tax debt should always be addressed proactively — never assume it will expire.

What to Do If a Collector Calls About Old Debt

1. Ask them to confirm the original creditor, the amount, and the date of last payment
2. Do NOT make any payment or verbal acknowledgment until you've verified the timeline
3. Consult a Licensed Insolvency Trustee or lawyer if you're unsure whether the debt is statute-barred
4. Send a cease communication letter if appropriate
5. Remember: even statute-barred, if you can afford to pay old debts, doing so may help your credit and your peace of mind