How Long Can Debt Collectors Collect in Canada?

What is the statute of limitations on debt collection?

The statute of limitations on debt collection is the time frame during which a creditor or collection agency can sue you for an unpaid debt. Once that period expires, the debt becomes statute-barred, and no court will enforce it.

The clock starts from the date of your last payment or last written acknowledgement of the debt.

The limitation period applies to unsecured debts like credit cards, personal loans, and payday loans.

Secured debts and government debts (CRA tax debts, student loans) follow different rules.

How long can debt collectors pursue debt in each province?

As of February 2026, the limitation periods for unsecured debt across Canada are as follows.

Province or territory	Limitation period	Legislation
Ontario	2 years	Limitations Act, 2002
British Columbia	2 years	Limitation Act, 2012
Alberta	2 years	Limitations Act, RSA 2000
Saskatchewan	2 years	Limitations Act, SS 2004
New Brunswick	2 years	Limitation of Actions Act, SNB 2009
Nova Scotia	2 years	Limitation of Actions Act, SNS 2014
Quebec	3 years	Civil Code of Quebec, art. 2925
Manitoba	6 years	Limitation of Actions Act, CCSM c. L150
Newfoundland and Labrador	6 years	Limitations Act, SNL 1995
Prince Edward Island	6 years	Statute of Limitations, RSPEI 1988
Northwest Territories	6 years	Limitation of Actions Act, RSNWT 1988
Nunavut	6 years	Limitation of Actions Act, RSNWT (Nu) 1988
Yukon	6 years	Limitation of Actions Act, RSY 2002

The majority of Canadians live in a two-year province. If you stopped paying a credit card in Ontario in January 2024 and the creditor did not sue, the debt became statute-barred in January 2026.

What resets the limitation period?

Any payment, even $1, restarts the limitation period in every province. Signing a payment plan, replying to a collection letter confirming the balance, or emailing an admission of the debt all count as written acknowledgement.

In Ontario, BC, and Nova Scotia, only a written acknowledgement restarts the clock. In Alberta, Manitoba, and the territories, a verbal promise to pay is enough.

Source: Ontario – Limitations Act, 2002, s. 13

What happens after the limitation period expires?

Debt collectors lose the right to sue you. Phone calls, emails, and letters are still allowed, but the threat of legal action is gone. The debt does not disappear, and the collection account stays on your credit report.

If a collector threatens to sue after the limitation period, tell them the debt is statute-barred and file a complaint with your provincial Consumer Protection Office.

How does debt collection affect your credit report?

A collection account stays on your Equifax credit report for six years from the date of first delinquency. TransUnion keeps it for six years in most provinces, but seven years in Ontario, New Brunswick, Newfoundland and Labrador, and Quebec.

Source: Financial Consumer Agency of Canada – How long information stays on your credit report

Paying off a collection does not remove the account. The status changes from “unpaid” to “paid,” which looks better to future lenders, but the account remains for the full period.

Frequently asked questions

Does the limitation period restart if I make a payment?

Yes. Any payment restarts the limitation period in full. In some provinces, a verbal promise to pay also restarts the clock. Talk to a Licensed Insolvency Trustee before paying old debt.

Can a debt collector contact my employer or family?

A collection agency cannot discuss your debt with third parties unless you give permission. The agency can contact your employer to confirm employment status, but nothing more.

What happens if I move to another province?

The applicable limitation period depends on the original credit agreement, the creditor’s location, and where you live now. Confirm your position with a Licensed Insolvency Trustee or lawyer.

Can a debt collector garnish my wages?

Only with a court order. Once the limitation period expires, the collector cannot get a court order, so wage garnishment is no longer a risk from that debt.

Does paying off a collection improve my credit score?

The status changes from “unpaid” to “paid.” The account remains for six to seven years regardless, but “paid” looks better to lenders reviewing your history.

Can a debt collector report the debt after the limitation period?

Yes. The statute of limitations only affects the collector’s ability to sue. The collection account stays on your credit report for six to seven years regardless.

Get help with debt collection

If debt collectors are contacting you and you are not sure what to do, talk to a Licensed Insolvency Trustee. The initial consultation is free.