Updated January 1, 2026

Debt Collection Laws by Province

Q: What is the statute of limitations on debt in Canada?

The statute of limitations on debt in Canada ranges from 2 to 6 years depending on your province. Ontario, BC, Alberta, Saskatchewan, Nova Scotia, and New Brunswick have 2-year limits. Quebec has 3 years. Manitoba, Newfoundland, PEI, and the territories have 6-year limits. After this period, creditors cannot sue you for the debt.

Q: How much of my wages can be garnished in Canada?

Wage garnishment limits vary by province. Ontario and New Brunswick protect 80% of wages (max 20% garnishment). BC, Quebec, Saskatchewan, Manitoba protect 70% (max 30% garnishment). Alberta and Nova Scotia protect only 50% (max 50% garnishment). CRA can garnish more than these limits for tax debt.

Q: Do debt collection laws differ by province?

Yes, debt collection in Canada is regulated at the provincial level. Key differences include: statute of limitations (2-6 years), wage garnishment limits (20-50%), and calling hours restrictions. However, consumer proposals and bankruptcy are federal processes under the Bankruptcy and Insolvency Act and work the same everywhere.

Q: Can a statute-barred debt still appear on my credit report?

Yes. Even after the limitation period expires (making the debt legally uncollectible through courts), the debt can remain on your credit report for up to 6 years from the date of last activity. Collectors can also still contact you about the debt—they just cannot sue you.

Q: Which province has the best debtor protections?

Ontario and New Brunswick offer the strongest protections with a 2-year limitation period and 80% wage protection. Alberta and Nova Scotia have weaker protections with only 50% wage protection. Manitoba has a 6-year limitation period, giving creditors three times longer to sue.

Debt collection in Canada is regulated at the provincial level. Your rights and protections depend on where you live. To discuss your situation with a professional, see our Find a Licensed Insolvency Trustee directory by province.

Find a Licensed Insolvency Trustee by province · Editorial policy

Key Facts: Canadian Debt Collection Laws

Limitation periods range from 2 to 6 years depending on your province—after which creditors cannot sue you
Wage garnishment is capped at 20-50% of your pay, varying by province (CRA can take more)
Consumer proposals and bankruptcy are federal—they work the same in every province
Credit report duration is 6 years in all provinces regardless of limitation period

All Provinces & Territories Compared

Province/Territory	Limitation Period	Wage Protection	Max Garnishment
Ontario	2 years	80% exempt	20%
British Columbia	2 years	70% exempt	30%
Alberta	2 years	50% exempt	50%
Quebec	3 years	70% exempt	30%
Saskatchewan	2 years	70% exempt	30%
Manitoba	6 years	70% exempt	30%
Nova Scotia	2 years	50% exempt	50%
New Brunswick	2 years	80% exempt	20%
Newfoundland and Labrador	6 years	—	—
Prince Edward Island	6 years	—	—
Northwest Territories	6 years	70% exempt	30%
Yukon	6 years	70% exempt	30%
Nunavut	6 years	70% exempt	30%

Source: Provincial legislation and court rules. See individual province pages for detailed citations.

What This Means For You

Limitation Period (Statute of Limitations)

This is how long creditors have to sue you for a debt. After this period expires, the debt becomes statute-barred—meaning creditors cannot take you to court.

Important:

• The clock starts from your last payment or acknowledgment
• Making a payment or acknowledging the debt restarts the clock
• Statute-barred debts can still appear on your credit report and collectors can still call