STATUTE OF LIMITATIONS ON LITIGATION:
Federal and Provincial Governments have Limitation Acts which provides for a limit on the time an unsecured debt can be persued by legal proceedings / litigation. If an unsecured debt is not collected, or payments are not made on the unsecured debt within these time limits, then legal action cannot be taken by the creditor. However, it may be possible in some provinces for the clock to start all over again if your customer issues a payment, admits to the debt, or signs an acknowledgement of the debt.
British Columbia: Section 3 (5) of the BC Limitation Act sets 6 years as the limit for debt.
Alberta: The Alberta Limitations Act sets 2 years as the term which is extended to 10 years if there is a judgement.
Manitoba: Limitation of Actions Act, C.C.S.M. c. L150, s. 2(1)(g) sets 6 years as the limit for debt.
New Brunswick: Limitation of Actions Act, S.N.B. 2009, c. L-8.5. sets 6 years as the limit for debt.
Newfoundland and Labrador: Limitations Act, S.N.L. 1995, c. L-16.1, ss. 5(b); 13; 14. sets 2 years as the limit for debt.
Nunavut: Limitation of Actions Act, R.S.N.W.T. 1988, c.L-8, s. 2(e). sets 6 years as the limit for debt.
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Nova Scotia: Limitation of Actions Act, R.S.N.S. 1989, c.258, s. 2(1)(e). sets 6 years as the limited for debt. However, within 4 years of expiry of general limitation period, the courts may disallow the limitation period, depending on the circumstances of the case.
North West Territories: Limitation of Actions Act, R.S.N.W.T. 1988, c. L-8, s. 2(e). sets 6 years as the limit for debt.
Ontario: The Ontario Limitation Act of 2002 , came into force on January 1, 2004. It sets 2 years as the term (Section 4). However, this limitation will be reinstated where the debtor acknowledges the debt or makes a partial payment towards the debt. If the debt default occurred prior to January 1, 2004, the creditor will have 6 years to pursue the claim. However, if the default occurred after January 1, 2004 then the credit will just have the 2 year limit.
Prince Edward Island: Statute of Limitations, R.S.P.E.I. 1988, c. S-7, s. 2(1)(g). sets 6 years as the limit for debt.
Quebec: Civil Code of Quebec, S.Q. 1991, c. 64, art. 2925. sets 3 years as the limit for debt.
Saskatchewan: Limitations Act, S.S. 2004, c. L-16.1. sets 2 years as the limit for debt.
Yukon: Limitation of Actions Act, R.S.Y. 2002, c. 139, s. 2(1)(e), (f). sets 6 years as the limit for debt.