Updated: April 2025  |  bremo.io financial guides

Statute of Limitations on Debt in Canada by Province

Every province in Canada has a limitation period — a time window during which a creditor can sue you to collect a debt. Once this period expires, the creditor loses the legal right to obtain a court judgment against you for that debt. However, the debt does not disappear — and collectors may still contact you.

Understanding limitation periods is important for anyone dealing with old debts, collection calls on accounts that have not been active in years, or considering whether to make a partial payment on an old account.

Limitation Periods by Province

Note: Always confirm with a lawyer or licensed professional. Laws can change and individual circumstances affect limitation calculations.

What "Discovered" Means

The limitation clock generally starts running from the date the creditor knew or reasonably should have known they had a claim. For an unpaid credit card, this is typically:

• The date of the last missed payment
• The date of the last payment made on the account
• The date you acknowledged the debt in writing

Different provinces calculate the start date slightly differently. In Ontario and BC, it is the date of "discovery" — when the creditor knew they had a claim. In older limitation statutes (still used in some provinces), it may be the date of the last payment or last written acknowledgment.

What Resets the Limitation Clock

Actions that can restart the clock:

• Making any payment (even $1) on the account
• Signing a document acknowledging the debt
• Making a written statement admitting the debt exists (including email)

A verbal acknowledgment may or may not restart the clock depending on the province. If in doubt, do not acknowledge an old debt in writing without first consulting a professional.

What Happens After the Limitation Period?

Once the limitation period expires:

• The creditor cannot successfully sue you for the debt (it is a complete defence in court)
• The creditor can still contact you to request payment
• The debt may still appear on your credit report (up to 6 or 7 years from the date of first delinquency)
• You are not legally required to pay, but you may choose to

Court Judgments

An existing court judgment is different from an unpaid debt. Once a creditor has obtained a judgment, a separate and much longer enforcement limitation period applies (typically 10+ years). Judgments can often be renewed. If a creditor already has a judgment against you, the limitation period on the original debt is no longer relevant.

Federal Debts: CRA and Student Loans

Federal debts — including CRA tax arrears — are not subject to provincial limitation periods in the same way. The CRA has extensive collection powers under federal law with different time constraints. Federal student loans have their own limitation rules.