Does Debt Expire In Canada Is There A Statute Of Limitations

2010-10-25

 For those reading this blog, a Statute of Limitations is the law which will limit the time for prosecution of crimes or suing for debts. The Federal government and the provinces have Limitations Acts which govern these time limits. In Alberta, the provincial Limitations Act sets the time for suing on a debt to 2 years. The definition of when that time clock starts ticking is also something that has to be considered. The 2 year clock begins on the date on which the claimant first knew, or ought to have known, of the debt. And it will renew whenever the Debtor acknowledges the debt. An acknowledgement could be something in writing or a partial payment. If there is already a judgment granted, the time period is extended to 10 years. But judgments can be renewed by the creditor. I believe the Statute of Limitation period for Canada Revenue Agency to collect on debts under the Income Tax Act is 10 years. Donna Carson, CGA, CIRP, Trustee [email protected]