Debt Collection Limitation Periods in Canada by Province and Territory

A creditor generally has between two and six years to sue for an unsecured debt in Canada, depending on the province or territory. Most common-law provinces set a two-year period running from discovery of the claim, Quebec allows three years under its Civil Code, and Manitoba, Prince Edward Island, Newfoundland and Labrador, Yukon, the Northwest Territories and Nunavut allow six years.

A limitation period is the deadline for a creditor to start a court action to collect a debt. Once it expires, the debt is generally no longer enforceable through the courts, although it may still appear on your credit report and a collector may still ask you to pay. In Canada the deadline is set by provincial and territorial law, not by the federal government, so the answer changes at every border.

Two years in most common-law provinces

Ontario, British Columbia, Alberta, Saskatchewan, New Brunswick and Nova Scotia use a two-year basic limitation period that runs from the day the claim is discovered, generally when the creditor knew or ought to have known that the debt was owed and unpaid. Most of these statutes also set a long-stop or ultimate period, such as 10 or 15 years, after which no claim may be brought regardless of discovery. Ontario's Limitations Act, 2002, for example, sets the basic period at two years from discovery and a 15-year ultimate period.

Six years in Manitoba and several other jurisdictions

Manitoba, Prince Edward Island, Newfoundland and Labrador, Yukon, the Northwest Territories and Nunavut have kept older limitation statutes that set six years for an action to recover money. In Newfoundland and Labrador, section 6(1)(h) of the Limitations Act gives six years to recover a debt, while claims for injury to the person are subject to a two-year period. Manitoba's Limitation of Actions Act likewise sets six years for the recovery of money.

Three years in Quebec

Quebec is a civil-law jurisdiction. Article 2925 of the Civil Code of Quebec provides that an action to enforce a personal right or movable real right is prescribed by three years, unless another period is set. The clock generally starts when the right of action arises or is discovered.

What restarts the clock

In most provinces, acknowledging the debt in writing or making a part payment restarts the limitation period. This is why a collector may ask you to make a small payment or sign a document: doing so can revive a debt that was about to become time-barred. If you believe a debt is old, be careful about acknowledging it before you get advice.

Important limits on this table

A limitation period is not the same as a credit-report retention period, and it does not stop a creditor or collector from contacting you. It also does not apply to every kind of debt: taxes, court judgments, secured debts and amounts owed to the Crown often have different or longer periods, and a judgment can usually be enforced for many years. The table below records the general unsecured-debt period for each jurisdiction, with the statute and an official source. If you are facing collection action, seek advice from a lawyer or a non-profit credit counsellor in your province or territory.