Now you can listen to our blog post, "Online Payday Loans in Canada" while on…
Now you can listen to our blog post, “How Long Can You Legally be Chased for a Debt in Canada?” while on the go.
You are currently unable to pay off your debt. As a result, debt collectors and collection agents are pursuing you. This could be really distressing. These calls are not only bothersome (and in some cases, harassing), but you may reach the point where you are afraid to answer the phone or open the door if someone knocks because you fear it might be a collection agent.
It makes it reasonable to inquire how long a collection firm can try to collect debts for this reason. When can I finally rest and stop worrying about being pursued by debt collectors? is what you truly want to know.
It depends on your province of residence to answer the question “how long can a collection agency collect on a debt in Canada.” Although provincial laws on the Statute of Limitations are frequently different from federal laws, the Government of Canada stipulates that legal action cannot be initiated to collect a debt after 6 years of the debt’s final acknowledgment.
How long is it possible for an Ontario collection agency to pursue debts?
In Ontario, there is a two-year legal statute of limitations on filing debt-collection lawsuits. The federal government claims that this is a shorter period of time than the duration of a debt collection process in Canada. This means that a debt collector has up to two years to try to file a lawsuit against you if you reside in Ontario and you owe money but have not made any payments toward it.
However, this period resets if you make any payments or acknowledge the obligation in any way (such as by pledging to make a payment). Additionally, you can extend the time a collector has to find you if you relocate or change your phone number without telling the original creditor.
It’s crucial to understand that even though Ontario only allows collection agencies to pursue debts for two years, this doesn’t imply you are no longer responsible for paying the amount. It simply means that debt collectors or creditors cannot file a lawsuit against you in an Ontario court to collect that debt. You’ll have the debt on your credit record for at least six years, and even after that, you’ll theoretically still be responsible for paying it. The possibility of legal action deters many collecting agencies, though.
Agents and creditors will either cease contacting you or lose the capacity to effectively intimidate you into paying the debt owing.
How long in British Columbia can a collection agency continue to pursue debts?
As previously stated, a collection agency in Canada has six years to try to collect a debt. However, exactly like in Ontario, the time frame in British Columbia is only two years. This implies that for two years following your final payment, creditors and collection agencies may still get in touch with you and perhaps file a lawsuit.
You will still be responsible for the debt after these two years have passed, but collection agents won’t be able to file a lawsuit to have it legally enforced against you.
How long is it possible for an Alberta collection agency to pursue debts?
There is a two-year time limit in Alberta for debt collectors or creditors who want to file a lawsuit against you to recover owing money. You will still be responsible for the debt once this period has passed, but many collection agencies will cease contacting you because they won’t be able to sue you.
It’s crucial to remember that if a court rules against you before the initial deadline passes, this limitation may be prolonged for up to ten years.
In Canada, how long may someone be pursued for debts?
When communicating with a debt collector, it’s crucial to comprehend the local regulations. An attempt by a debt collector to take advantage of a debtor who is ignorant of local rules and regulations is not uncommon.
How long is it legal to pursue for unpaid debts in Canada?
It is unpleasant and annoying to be pursued by debt collectors. You don’t want to continuously be on the phone with someone demanding money, or even worse, having someone knock on your home. These collection agencies are frequently highly pushy, maybe even bordering on harassment. It follows that asking how long a creditor can pursue a debt in Canada is simply natural.
The truth is that nothing prevents a debt collector from contacting you years after the amount is due. However, if it has been more than six years since your last payment or acknowledgment of the debt, creditors or collection agencies in Canada are not permitted to file a lawsuit against you. This period is significantly shorter in some jurisdictions (such as Ontario, British Columbia, or Alberta), as we’ve already mentioned. Since their primary fear of legal action won’t be viable any longer, many debt collectors will stop calling once they can no longer use it as pressure to persuade you to pay them.
How long can a collection agency collect a debt in Canada?
The answer is that they are technically allowed to do so at any time, but their authority to pursue legal action ends after six years.
How long in Ontario may a debt collector continue to pursue an old debt?
It’s crucial to be aware that Ontario has different rules than those outlined in federal legislation if you’re wondering how long a collection agency can pursue a debt there.
If it has been two years since you made a payment or otherwise acknowledged the debt, the collector or collection agency may not file a lawsuit against you or take any other legal action to recover the sums owed.
This means that while the answer to the question “how long may you be pursued for a debt in Canada?” is six years, there is a two-year statute of limitations if you live in Ontario.
How long in Canada may a debt collector continue to pursue old debts?
Although debt collectors in Canada are legally allowed to pursue an old debt indefinitely, there are rules in place that limit when they can file a lawsuit or take someone to court. This time frame is six years in Canada. Province to province differs with regard to this time range.
If you’re wondering how long debt collectors can pursue a debt in Canada, you should know that the majority will give up after six years. They can no longer threaten you with legal action, which is why this happens.
It’s also vital to be aware that each province in Canada has its own restrictions on how long a creditor may pursue the collection of a debt. These restrictions frequently deviate from the federal government’s six-year timetable. When speaking with debt collectors, it’s crucial to understand the laws in your jurisdiction.
Need Some Extra Cash to Help Your Finances? Try Lionsgate!
Are you struggling with your financial needs and need some extra cash? Lionsgate can help. Just fill out the form below, letting us know all your money or mortgage requirements, and we will find the best lender for you. Amazing thing? The process is free, and you can quit it at any time.
We have a team of experts that analyze your requirements and pick the best lender for you with prudent advice.
Note: Please give your authentic information while completing the form below.
Please share this article on your social media profiles if you found it helpful. Also, visit our blog to read similar helpful articles on finance, real estate, and getting mortgages.