The statute of limitations on debt in Canada is generally 2 years in Ontario, Alberta, British Columbia, Saskatchewan, New Brunswick and Newfoundland and Labrador, 3 years in Quebec, and 6 years in Manitoba, Nova Scotia, Prince Edward Island and the territories. After that period, a creditor usually cannot win a lawsuit to collect an unsecured debt, but the debt does not disappear and can still appear on your credit report. This guide explains when the clock starts, what resets it, which debts are excluded and how to calculate your own date.

Statute of limitations on debt by province

Each province and territory sets its own limitation period for starting a lawsuit over unsecured consumer debt such as credit cards, lines of credit and personal loans. The general periods are summarized below; confirm the current law in your province, because rules and exceptions vary.

These periods concern the right to sue. They do not erase the debt, and they do not set how long the debt stays on your credit file.

When does the clock start?

For most consumer debts, the limitation period starts on the date of default or the last payment or written acknowledgment of the debt, depending on provincial rules. In practice, the date of your last payment is the key date to look for on your statements.

1. Find the date of the last payment you made on the account.
2. Check whether you signed any document acknowledging the debt after that date.
3. Add the limitation period for your province of residence.
4. The result is the approximate date after which a lawsuit would normally be time-barred.

Example

Sophie, in Ontario, made her last credit card payment on March 15, 2024, and has not acknowledged the debt in writing since. With a 2-year period, a lawsuit started after about March 15, 2026 would generally be out of time. If she had lived in Nova Scotia, the period would run until about March 2030.

What can reset the limitation period

• Making a payment, even a small one, often restarts the clock.
• Acknowledging the debt in writing, for example by signing a repayment agreement or a letter confirming you owe it.
• Agreeing to a new payment plan with the creditor or a collection agency.

Collectors sometimes ask for a small goodwill payment. Before paying anything on an old debt, check whether the limitation period may have expired and how a payment could affect it. Our guide on collection agency rights in Canada explains how collectors must behave.

Debts not covered by provincial limitation periods

• Tax debts to the CRA: the CRA generally has 10 years to begin collection action, and that period can be extended. See what to do if you owe the CRA.
• Government student loans: federal student loans are not subject to provincial limitation periods and follow federal rules.
• Court judgments: once a creditor obtains a judgment, it can usually be enforced for many years and sometimes renewed.
• Secured debts: mortgages and car loans involve security over property, with different rules.
• Support payments and fines: family support and court-ordered fines are treated separately.

Limitation period vs credit report

The time a creditor has to sue is different from the time a debt stays on your credit report. In Canada, a collection account or charged-off debt generally remains on your credit file for about six to seven years, depending on the credit bureau and the province, measured from the date of last activity. A time-barred debt can still lower your score while it is reported. Our article on how debt affects your credit score covers rebuilding after collections.

Should you just wait it out?

Waiting until a limitation period passes is not a debt strategy in itself. Collection calls can continue, your credit is affected, and the creditor may sue before the period ends. If you have several debts and cannot keep up, structured solutions are usually better:

• Negotiating a settlement with the creditor or collector.
• A debt management plan with a non-profit credit counselling agency.
• A consumer proposal or bankruptcy through a Licensed Insolvency Trustee, which legally stops collection; see consumer proposal vs bankruptcy.

Checklist if a collector contacts you about an old debt

• Ask for written details: original creditor, amount, date of last payment.
• Check your own records and credit report to confirm the dates.
• Do not make a payment or sign anything until you understand the effect on the limitation period.
• Keep copies of all letters and notes of every call.
• If you are served with a lawsuit, do not ignore it; a limitation defence usually has to be raised in court.
• Get legal advice or contact a legal clinic for your province.

Quebec: the three-year prescription rule

In Quebec, the Civil Code uses the term extinctive prescription. For most personal rights, including unpaid credit card and loan balances, the period is three years. As in other provinces, a payment or a written acknowledgment of the debt generally interrupts prescription and starts a new period. Quebec also has its own rules on collection practices, administered by the Office de la protection du consommateur. Quebec residents facing a claim should consult a lawyer, a notary or a legal aid office, since the vocabulary and procedures differ from the common-law provinces.

Small claims and default judgments

Many creditors pursue smaller debts in small claims court. If you receive a claim and do nothing, the creditor may obtain a default judgment even if the limitation period had expired, because the limitation defence usually has to be raised by you. Read every court document carefully and respond before the deadline shown on it. Free legal clinics and court self-help centres in most provinces can explain how to file a defence.

FAQ

Does an expired limitation period cancel the debt?

No. The debt still exists, but the creditor generally loses the ability to obtain a court judgment if you raise the limitation defence.

Which province’s rules apply if I moved?

It can depend on where you lived when the debt was incurred, where the contract was made and where you are sued. This is a legal question best answered by a lawyer.

Is the limitation period the same for a line of credit?

Generally yes for unsecured lines of credit, but a secured line, such as a home equity line, follows different rules.

Can a collector still call me after the limitation period?

Collectors may still contact you, but they must follow provincial collection rules and cannot threaten legal action they are not entitled to take.

Does a partial payment really restart the clock?

In many provinces, yes. That is why it is important to check the dates before making any payment on an old account.

In short: most unsecured debts in Canada become time-barred after 2 years (Ontario and several other provinces), 3 years (Quebec) or 6 years (Manitoba, Nova Scotia, PEI and the territories), counted from the last payment or acknowledgment. This article is general information, not legal advice; consult a lawyer, a legal clinic or a Licensed Insolvency Trustee about your specific situation.