How Long Can a Debt Be Collected in Canada? (2026 Provincial Guide)

The statute of limitations on debt in Canada ranges from 2 to 6 years depending on your province—2 years in ON/AB/BC, 3 years in QC, 6 years in MB and territories—starting from your last payment or written acknowledgment, and after this period expires, creditors cannot successfully sue you because you have a legal defense, though the debt still exists and remains on credit reports for 6 years. Provincial limitation legislation protects consumers from indefinite collection threats while balancing creditors’ rights to pursue recent debts. Understanding your province’s statute of limitations and what actions restart the clock helps you assess collection risk and make informed decisions about debt resolution.

What Is the Statute of Limitations on Debt in Canada?

The statute of limitations is a legal time limit set by provincial legislation that restricts how long creditors can successfully sue you for unpaid debt. Consumer proposals are governed by the federal Bankruptcy and Insolvency Act. Once the limitation period expires, you gain a complete legal defense against lawsuits for that debt. Creditors can technically still file lawsuits, but you can have them dismissed by raising the statute-barred defense.

The statute of limitations creates a defense to lawsuits, not automatic immunity from collection. If a creditor sues you for statute-barred debt and you fail to respond, the court can grant a default judgment even though the debt is past the limitation period. You must actively assert the defense by filing a statement of defense citing the applicable provincial limitations act.

After the statute expires, the debt still exists as a moral obligation and creditors can still contact you to request payment. Collectors can call, send letters, and report the debt to credit bureaus. The statute prevents only successful lawsuits and court-ordered collection through garnishment or asset seizure.

Provincial limitation periods balance competing interests. Creditors need reasonable time to pursue legitimate debts, while debtors need protection from indefinite threats and stale claims where evidence and documentation may no longer exist. Two to six years provides creditors sufficient opportunity while giving debtors certainty that old debts eventually become unenforceable through courts.

Statute of Limitations by Province: Complete Chart

Provincial limitations legislation varies significantly across Canada. Six provinces have 2-year limitation periods, one province has 3 years, and five jurisdictions have 6 years.

Ontario enacted the Limitations Act, 2002, establishing a basic 2-year limitation period for most debt claims. Alberta’s Limitations Act sets a 2-year period with a unique 6-year collection ban. BC’s Limitation Act provides 2 years. Saskatchewan, Nova Scotia, and New Brunswick also have 2-year limitations.

Quebec’s Civil Code of Québec prescribes a 3-year limitation period for debt collection actions under article 2925. This makes Quebec unique among major provinces with the longest limitation period outside the territories.

Manitoba maintains a 6-year limitation period under the Limitations of Actions Act. Northwest Territories, Prince Edward Island, Nunavat, and Yukon also have 6-year limitation periods under their respective legislation.

The limitation period begins from the date of last payment on the debt or the date of last acknowledgment of the debt, whichever is later. In most provinces, the clock starts the day after the triggering event.

Use the statute of limitations calculator to determine whether specific debts are still within the limitation period for your province.

When Does the Statute of Limitations Clock Start?

The limitation period begins from the later of two triggering dates: your last payment on the debt, or your last written acknowledgment that you owe the debt. In most provinces, the clock starts running the day after the triggering event occurred.

For payment-based triggering, the limitation starts the day after your last payment of any amount toward the debt. A $10 partial payment 18 months after you stopped paying in full starts a new 2-year limitation period in Ontario from the date of that $10 payment. Even minimal payments restart the entire limitation period.

For acknowledgment-based triggering, the limitation starts from written acknowledgment that you owe the debt. Acknowledgment typically requires signing a document or sending a written communication that confirms the debt exists and you are responsible for it. Provincial rules vary on what constitutes sufficient acknowledgment.

Verbal acknowledgments during phone calls generally do not restart the statute in most provinces, though this area of law has some uncertainty. To avoid risk, do not confirm you owe a debt during phone conversations with collectors if you believe the statute may have expired or is close to expiring.

If you made your last credit card payment on March 15, 2024, and have not paid or acknowledged the debt since, the 2-year limitation period in Ontario expires on March 15, 2026. Creditors must file lawsuits before that date to preserve their right to sue. After March 15, 2026, you have a complete defense.

When multiple payments exist, the limitation runs from the most recent payment. A payment history showing payments through June 2023, then no further payments, means the limitation starts from the June 2023 payment date regardless of when the account was opened or when you first borrowed.

What Restarts the Statute of Limitations Clock (And What Doesn’t)

Provincial limitations legislation specifies which actions restart the limitation period. Understanding these rules prevents accidentally resetting the clock on debts approaching the limitation deadline.

What DOES restart the statute:

Making any payment toward the debt, regardless of amount, restarts the limitation period from the payment date in most provinces. A $20 payment on a $10,000 debt restarts the full 2 or 3 or 6 year limitation period.

Providing written acknowledgment of the debt typically restarts the limitation. Written acknowledgment includes signing letters confirming you owe the debt, sending emails stating you will pay, or signing new payment agreements. Provincial rules differ on precise requirements.

In some provinces, partial performance such as paying interest without paying principal may restart the limitation. Consult provincial limitations legislation or a lawyer for province-specific rules.

What DOES NOT restart the statute:

Simply ignoring collection calls and letters does not restart the limitation clock. Collectors cannot reset your limitation period by increasing contact frequency or intensity.

Verbal conversations with collectors where you discuss the debt but do not make payment or written acknowledgment generally do not restart the limitation in most provinces, though this remains a gray area with limited case law.

Receiving demand letters from collectors or lawyers does not restart the limitation unless you respond in writing acknowledging the debt.

The debt being sold from the original creditor to a collection agency or debt buyer does not restart the limitation. The limitation period continues running from your last payment to the original creditor or acknowledgment of the debt, regardless of how many times the debt changes hands.

A creditor obtaining a judgment before the limitation expires does not restart the limitation for a new limitation period. However, judgments have separate enforcement periods typically lasting 10-20 years depending on province.

Can Creditors Sue After the Statute of Limitations Expires?

Creditors and collection agencies can file lawsuits after the statute of limitations expires, but you have a valid legal defense that should result in dismissal of the case. The statute creates a defense, not a prohibition on filing claims.

When sued for statute-barred debt, you must file a statement of defense within the deadline specified in the court documents, typically 20-30 days from being served. Your statement of defense must specifically cite the applicable provincial limitations act and state that the debt is statute-barred because more than 2, 3, or 6 years have passed since your last payment or acknowledgment.

If you do not file a statement of defense, the creditor can obtain a default judgment even though the debt is statute-barred. Courts do not automatically check whether debts are within limitation periods. The defense must be raised by the defendant.

Once you file the defense citing the statute of limitations, the creditor must prove either that the limitation period has not expired or that you took some action that restarted the clock. Creditors bear the burden of proving their claim is within the limitation period when the defense is properly raised.

Most creditors and collectors do not sue for statute-barred debt because they know the defense will succeed if properly asserted. Filing lawsuits costs money for court fees, process servers, and legal time. Lawsuits that will be dismissed generate costs with no recovery.

However, some aggressive collectors sue hoping debtors will not respond or will not know to raise the statute-barred defense. This practice is predatory but not uncommon, particularly with debt buyers who acquired debt for pennies on the dollar and can afford to file numerous lawsuits gambling on occasional default judgments.

If a creditor obtains judgment on statute-barred debt because you failed to defend, you can apply to set aside the judgment by demonstrating the debt was statute-barred. This requires filing a motion with evidence of the limitation period expiry. Courts have discretion to set aside judgments obtained improperly.

Statute of Limitations vs Credit Report: Different Timelines

The statute of limitations and credit reporting operate on separate legal frameworks with independent timelines. Confusion between these two concepts leads many people to mistakenly believe that statute-barred debt disappears from credit reports.

Collection accounts and delinquent debts remain on Equifax and TransUnion credit reports for 6 years from the date of last activity, which credit bureaus define as your last payment or the first date of delinquency depending on how the account was reported. This 6-year reporting period is consistent across Canada and does not vary by province.

A debt that becomes statute-barred after 2 years in Ontario will still appear on your credit report until the 6-year mark from last activity. The statute of limitations prevents creditors from successfully suing you; it does not remove the debt from credit bureau files or shorten the reporting timeline.

Judgments obtained by creditors report separately on credit files as public records. Equifax reports judgments for 6 years from the date of judgment in most provinces. TransUnion may report judgments for 7 years depending on province. These judgment reporting periods run independently of the underlying debt’s statute of limitations.

If a creditor obtains judgment on a debt in year 2, the judgment reports for 6-7 years from the judgment date even though the underlying debt limitation period expired long ago. Judgments have separate enforcement periods typically lasting 10-20 years depending on province.

The only ways to remove collection accounts from credit reports faster than waiting the full 6 years are: paying the debt in full, which updates the account to paid collection status but typically still reports for 6 years from original delinquency; settling the debt for less than the full amount, which reports as settled collection for 6 years; or including the debt in a consumer proposal or bankruptcy, which has separate credit impact.

Consumer proposals report as R7 on credit files and are removed 3 years after completion or 6 years from filing, whichever comes first. For many people with multiple collection accounts, filing a consumer proposal results in faster credit recovery than waiting for each collection to age off individually over 6 years.

Debts with No Statute of Limitations in Canada

CRA tax debt has no statute of limitations in Canada. The Canada Revenue Agency can pursue collection on income tax debt, GST/HST debt, payroll source deductions, CERB repayment, and other tax obligations indefinitely regardless of age under the Income Tax Act. CRA can collect on 10-year-old, 15-year-old, or 20-year-old tax debt with the same legal authority as current year debt.

CRA’s collection powers include administrative wage garnishment through Requirement to Pay notices that allow garnishment of up to 50% of employee income and up to 100% of contractor receivables without obtaining court judgments. CRA can also freeze bank accounts, seize assets, intercept tax refunds and government benefits, and register liens against property at any time.

Because there is no limitation period on CRA debt, waiting for a statute to expire provides no protection. CRA debt must be resolved through payment arrangements or legal debt relief via consumer proposal or bankruptcy. Consumer proposals stop CRA collection immediately through the legal stay of proceedings and allow you to repay a reduced amount over 3-5 years.

Federal student loans may have extended collection powers beyond provincial limitation periods, though this area of law involves complexity around federal versus provincial jurisdiction. Provincial student loans are generally subject to provincial limitation periods of 2-6 years.

Criminal court fines imposed as part of sentencing for criminal convictions have no limitation period. These fines can be collected indefinitely and may result in imprisonment in default if not paid, though this applies only to criminal fines, not civil debts.

All other consumer debts including credit cards, personal loans, lines of credit, payday loans, utility bills, medical bills, and debts to private creditors are subject to provincial limitation periods of 2-6 years. Secured debts like mortgages and car loans have limitation periods for pursuing deficiency balances after collateral is repossessed and sold.

Should You Wait for the Statute to Expire or Resolve Debt Now?

Waiting for the statute of limitations to expire carries significant drawbacks compared to active debt resolution through consumer proposal or bankruptcy. While waiting may eliminate lawsuit risk after 2-6 years, collection accounts remain on credit reports for 6 years, interest continues accruing, and collectors can still contact you throughout the entire period.

During the waiting period, your credit score remains severely damaged by collection accounts typically reporting as R9. Multiple collections can drop credit scores to the 400-500 range, preventing approval for mortgages, car loans, credit cards, apartment rentals, and sometimes employment requiring credit checks. Six years of damaged credit can cost tens of thousands in denied credit opportunities and higher interest rates when credit is extended.

Interest on most debts continues accruing even after you stop paying and stop responding to collectors. A $20,000 credit card balance at 19.99% annual interest grows by approximately $4,000 per year if unpaid. After 6 years, the balance could exceed $40,000 even though the statute has expired and the debt is no longer enforceable through courts.

Collectors can continue calling and sending letters for the entire 6-year period even after the statute expires. While you can tell collectors the debt is statute-barred and request they stop contacting you, collectors often persist with contact hoping you will voluntarily pay or make a mistake that restarts the limitation.

Active debt resolution through consumer proposal typically achieves faster credit recovery. Proposals report as R7 on credit files and are removed 3 years after completion or 6 years from filing, whichever comes first. Most proposals are completed in 3-5 years, meaning total credit impact ranges from 6-8 years. However, you are making progress toward resolution during those years rather than simply waiting.

Consumer proposals also provide immediate legal protection through the stay of proceedings that stops all collection calls, wage garnishment, and lawsuits within 24-48 hours of filing. You repay only 20-40% of what you owe in fixed monthly payments that never increase even if your income rises. All assets are protected and you avoid the R9 bankruptcy rating.

Filing a consumer proposal before the statute expires makes sense when: you have multiple debts with different limitation dates, you want to stop collection calls immediately, you are worried about lawsuits and garnishment, you want to start credit rebuilding sooner, or you have income that collectors could garnish.

Waiting for the statute to expire makes sense only when: you have very old debt already approaching the 6-year mark, you have no income or assets collectors could garnish even if they sued before expiry, you can tolerate continued collection contact and credit damage, and you have no need for credit in the next few years. If you’re unsure whether to wait or act now, consider your total debt load, income stability, and credit needs.

Bottom Line: Statute Provides Defense But Not Resolution

The statute of limitations creates a legal defense against debt collection lawsuits after 2-6 years depending on your province, measured from your last payment or written acknowledgment. Creditors can still file lawsuits after the statute expires, but you can have them dismissed by filing a statement of defense citing the limitation period. The defense is not automatic; you must assert it in response to lawsuits or creditors can obtain default judgments even on statute-barred debt.

Ignoring debt collectors does not restart the statute of limitations clock, but making any payment or providing written acknowledgment does restart the full limitation period from that date. Collection accounts remain on credit reports for 6 years regardless of the statute, and collectors can continue contacting you indefinitely even after the limitation expires. CRA tax debt has no statute of limitations and can be pursued forever through administrative garnishment powers.

Waiting for the statute to expire results in 6 years of damaged credit, continued collection contact, and accruing interest with no progress toward resolution. Consumer proposals provide legal protection that stops collections immediately while allowing you to repay only 20-40% of debt over 3-5 years, often resulting in faster credit recovery than waiting. Use the consumer proposal calculator to estimate your potential monthly payment. In 2024, 78.6% of Canadians filing insolvency chose consumer proposals over bankruptcy.

Stop collections and eliminate debt legally—faster credit recovery than waiting for statute expiry. Free LIT consultation.

Disclaimer: This article provides general information about statute of limitations in Canada and should not be considered legal or financial advice. Consult a Licensed Insolvency Trustee or lawyer for advice specific to your situation. Provincial limitation periods and rules vary; do not rely on statute alone without legal advice.

Last updated: February 2, 2026