Updated March 2025

Statute of Limitations on Debt Canada 2025 — When Debt Expires

In Canada, creditors have a limited window to sue you for unpaid debt. After that window closes, the debt may be legally unenforceable — but still on your credit report.

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What Is the Statute of Limitations on Debt in Canada?

The statute of limitations (or limitation period) on debt is the time period during which a creditor can take legal action (sue you in court) to collect a debt. Once this period expires, the creditor loses the right to sue — making the debt legally unenforceable.

Importantly, a time-barred debt does not disappear. The creditor can still attempt to collect and can still report the debt to credit bureaus. You can still choose to pay it. But they cannot sue you to force repayment after the limitation period has passed.

The Clock Can Reset: Making a payment, acknowledging the debt in writing, or in some provinces making a verbal acknowledgment can restart the limitation period from zero. Be very careful before making any payment or acknowledgment on an old debt.

Limitation Periods By Province — 2025

Province/TerritoryLimitation PeriodKey Notes
Ontario2 yearsLimitation Act 2002; clock starts when creditor discovered or ought to have discovered the claim
British Columbia2 yearsLimitation Act; basic limitation period
Alberta2 yearsLimitation Act; discovery-based
Quebec3 yearsCivil Code of Quebec; different legal framework
Manitoba2 yearsThe Limitation of Actions Act (2010)
Saskatchewan2 yearsThe Limitation of Actions Act
Nova Scotia2 yearsLimitation of Actions Act
New Brunswick2 yearsLimitation of Actions Act
PEI2 yearsStatute of Limitations
Newfoundland2 yearsLimitations Act
Territories (YK, NWT, NU)2–6 yearsVaries by territory

Note: CRA tax debts have a 10-year limitation period under the Income Tax Act and are not subject to provincial limitations. Student loans and mortgage debts also have special rules.

When Does the Limitation Period Start?

In most provinces, the clock starts on the date you discovered or ought to have discovered the claim — typically the date of your last missed payment or the date the creditor declares the debt in default. This is the "discovery date."

For a credit card debt, the clock typically starts running after your last missed payment (e.g., if you stopped paying in March 2022, the limitation period in Ontario would expire in March 2024).

What Resets the Limitation Period?

Actions that restart the clock (in most provinces):
  • Making any payment toward the debt (even $1)
  • Sending a written acknowledgment of the debt
  • Signing a new payment agreement
  • In some provinces: a verbal acknowledgment
If you're considering making a small payment on an old debt to "show good faith," understand that you may be restarting the entire limitation period.

Statute of Limitations vs. Credit Report Removal

These are two completely separate timelines. The statute of limitations determines when a creditor can sue you. The credit reporting period determines how long the debt appears on your credit file.

A debt can be past the limitation period (uncollectable by lawsuit) but still appear on your credit report for several more years.

Frequently Asked Questions

If the statute of limitations has passed, do I have to pay the debt?
You are not legally required to pay a time-barred debt, and a creditor cannot sue you to force payment. However, you can still choose to pay it voluntarily. Some people pay old debts for moral reasons or to clear their conscience. Just be aware that any payment may reset the limitation period and won't necessarily remove the collection from your credit report.
Can a debt collector still call me after the limitation period expires?
Yes. The statute of limitations only prevents a creditor from suing you. Collection agencies can still contact you to try to collect voluntarily. They must still follow provincial collections laws about calling hours and harassment. You can send a written notice that the debt is time-barred and you will not be paying, though this doesn't legally prohibit all contact.
How do I know when my debt's limitation period started?
The starting date is typically the date of your last payment or the date you defaulted (first missed payment that was never caught up). Check your credit report — Equifax and TransUnion show the date of last activity. You can also review your original statements or contact the original creditor for account history.
Does the statute of limitations apply to CRA (tax debt)?
CRA tax debts are governed by the Income Tax Act, not provincial limitation periods. CRA has 10 years from the date of assessment to collect a tax debt, and this period can be renewed. CRA also has extraordinary collection powers (garnishment without court order, liens on property) that private creditors don't have. Tax debt should be addressed proactively.
Can I use the statute of limitations as a defence in court?
Yes. If a creditor sues you after the limitation period has expired, you can raise the limitation period as a defence. In most provinces, the court will dismiss the claim if you raise this defence properly. However, if you don't raise it — if you don't respond to the lawsuit or don't mention the limitation period — the court won't automatically apply it. You must actively claim the defence.

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