Statute of Limitations and Debts in BC

A group of debt experts from across the country including Blair Mantin, President and Licensed Insolvency Trustee at Sands & Associates in British Columbia, spoke with CanadaCreditCards.com to help shed light on the varying limitation periods of consumer debt across Canada.

The statute of limitations bars creditors from legally attempting to collect on an unsecured debt after a certain limitation period – these limitation periods are not the same in each province. For example, Alberta, British Columbia, Ontario and Saskatchewan have a basic two-year limitation period; in Quebec it’s three years; everywhere else in Canada has a six-year limitation period.

While the statute of limitations essentially makes it illegal for a (non-government) creditor to demand payment from you after a certain amount of time, the rules can get complicated. For instance:

• Government debt collection is exempt (meaning the statute doesn’t apply to debts like taxes or student loans).
• In some provinces the limitation period winds up being reset if the consumer makes a payment or acknowledges the debt in writing. Because of this clause, collection agencies may try to “trick” people into admitting the debt and restarting the limitation periods.

“Can the Statute of Limitations Erase Your Debt?” – Read the Full Article

Consumers who may be considering relying on the statute of limitations as a course of action to deal with their debts, or exploring other debt solutions, are encouraged to connect with a local Licensed Insolvency Trustee in their province to learn about all their debt options confidentially, at no cost.