A group of debt experts from across the country including Blair Mantin, Vice-President and Licensed Insolvency Trustee at Sands & Associates in British Columbia, and Maritimes-based Licensed Insolvency Trustee Scott Marshall of Allan Marshall & Associates spoke with Canada CreditCards.com to help shed light on 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); and 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?” – Click to read the full article.
As the article suggests, anyone considering the statute of limitations as a course of action to deal with their debts, or those seeking alternative solutions, should contact a Licensed Insolvency Trustee (formerly known as a Trustee in Bankruptcy) to review all their options for their situation at no cost or obligation.
Did you know that the statute of limitations for debts in BC is only 2 years? Click to read an Overview of BC’s Statute of Limitations on Debt and gain insights and information about how this limitation period could affect you and your debts.
Book your confidential free debt consultation and meet with a Sands & Associates Licensed Insolvency Trustee in a location near you.