Ask Experts Questions for FREE Help !
Ask
    ravenworth's Avatar
    ravenworth Posts: 4, Reputation: 1
    New Member
     
    #1

    Mar 3, 2006, 12:50 PM
    Statute of limitations in Canada
    I want to know how long the statute of limitations is on a debt to a third party who secured a loan that was defaulted on. I am Canadian and the debt was incured here in Canada.:confused:
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member
     
    #2

    Mar 4, 2006, 07:40 PM
    It will depend on the province.

    What province do you live in?
    ravenworth's Avatar
    ravenworth Posts: 4, Reputation: 1
    New Member
     
    #3

    Mar 5, 2006, 09:01 AM
    I live in Ontario.
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member
     
    #4

    Mar 5, 2006, 01:32 PM
    Statute of Limitations (SOL) for Ontario:

    Refer to the Limitations Act, 2002. It came into force on January 1, 2004.

    There are a bunch of exceptions, but the main rule is as follows:

    You have 2 years to bring a law suit once you discover a problem. So, if you stop paying me May 2004, I have until May 2006 to bring my law suit.

    However, there is an ultimate limitation period of 15 years. The max time you have to bring any law suit is 15 years. Let's say that in May 2008, your lawyer tells you that you could have sued your accountant for the bad work he did for you back in May 2004. While 4 yrs later, your 2 year limitation period start May 2008 – May 2010. But, by May 2019, 15 yrs later, you would have been out of luck.

    Exceptions. Collateral has no limitations. If I loan you money in May 2004 to buy a house, and you secure it with the house as collateral. Then in April 2007, you stop paying me. Under the 2 yr rule, I only have until April 2009 to file suit, HOWEVER, since there is collateral involved, I can sue you whenever. I can sue you in April 2030.

    There are other exceptions as well.

    I hope I interpreted it correct.

    Here is the website link for you to reference and read yourself: http://www.stikeman.com/newslett/BaJan04.htm
    ravenworth's Avatar
    ravenworth Posts: 4, Reputation: 1
    New Member
     
    #5

    Mar 6, 2006, 08:47 AM
    Thank you for all your help, the link was very informative.

    I have a further question though. In this situation, when would a person in this position claim amnisty from the dept, after the two year or fifteen year limit?
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member
     
    #6

    Mar 6, 2006, 02:38 PM
    Depends. What kind of debt was it?

    Let's say credit card debt. Then, 2 yrs after your lender realizes you aren't paying. In the case, 2 yrs after the last statement you paid.

    A mortgage? Never. Since you have secured collateral on that.
    ravenworth's Avatar
    ravenworth Posts: 4, Reputation: 1
    New Member
     
    #7

    Mar 7, 2006, 08:55 AM
    It was a New Ventures business loan that was secured by the Ontario gov. the loan was defaulted and is now owed to the province.

    I've heard that if you ackowledge the loan verbally, then the SOL begins again, is that true?
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member
     
    #8

    Mar 7, 2006, 07:15 PM
    Quote Originally Posted by ravenworth
    I've heard that if you ackowledge the loan verbally, then the SOL begins again, is that true?
    Yes. I have heard that.

    But I would ask, how would they really know? But, assuming everyone is honest, then they might have a shot there. Simple, don't talk to them verbally.
    terryg752's Avatar
    terryg752 Posts: 197, Reputation: 4
    Junior Member
     
    #9

    Oct 3, 2007, 04:17 PM
    Quote Originally Posted by ravenworth
    I want to know how long the statute of limitations is on a debt to a third party who secured a loan that was defaulted on. I am Canadian and the debt was incured here in Canada.:confused:
    Captain Forest :

    Apart from Statue of Limitations, would the docrine of laches be of help? I am a law student - though I kinow the theory, I don't know how it would apply!

    Terry
    hutchijw's Avatar
    hutchijw Posts: 1, Reputation: 1
    New Member
     
    #10

    Feb 29, 2008, 09:24 AM
    Quote Originally Posted by CaptainForest
    Depends. What kind of debt was it?

    Let's say credit card debt. Then, 2 yrs after your lender realizes you aren’t paying. In the case, 2 yrs after the last statement you paid.

    A mortgage? Never. Since you have secured collateral on that.
    Hi Captian

    Question regarding Canadian Credit card debt
    I have a credit card that I have not paid on in almost 2 years. It's from New Brunswick. Do they also only have 2 years to collect on it? To top all this off, I've moved out of the country also. I was never late on payments until they stopped working with me and started charging me all these fees to pay by phone and what not... so, I stopped paying them and then my account fell behind.

    Thanks,

    Hutch
    legalboy's Avatar
    legalboy Posts: 2, Reputation: 2
    New Member
     
    #11

    Feb 1, 2009, 05:38 PM
    Quote Originally Posted by terryg752 View Post
    Captain Forest :

    Apart from Statue of Limitations, would the docrine of laches be of help? I am a law student - though I kinow the theory, I dont know how it would apply!

    Terry
    I believe this doctrine only applies in the sense that the judge can shorten the time of the SOL if he or she sees fit.
    peso's Avatar
    peso Posts: 2, Reputation: 1
    New Member
     
    #12

    Mar 7, 2010, 05:21 PM

    We purchase a house 2 years ago. The previous owner stated in the paper work that the basement was dry. We have discovered that it is wet once we lifted the laminate floors because of renos in our basement. It is now moldy and we have a lot of work to do. What is the statue of limitations.
    curiousmars's Avatar
    curiousmars Posts: 1, Reputation: 1
    New Member
     
    #13

    Apr 5, 2012, 11:00 PM
    What is the statue of limitation on a crown debt prosecuted under a criminal code in the province of NB?
    trese's Avatar
    trese Posts: 1, Reputation: 1
    New Member
     
    #14

    May 3, 2012, 08:25 AM
    I have had a fitness company chasing after me for the last 8 years. I have submitted numerous correspondence that this is not my debt.

    They keep threatening to apply it against my credit.

    Is there a limit on how long they can continue to pursue me?
    kcrellin's Avatar
    kcrellin Posts: 1, Reputation: 1
    New Member
     
    #15

    May 7, 2012, 06:01 PM
    Ontario
    ShanH1980's Avatar
    ShanH1980 Posts: 2, Reputation: 1
    New Member
     
    #16

    Aug 16, 2012, 04:05 PM
    Is the SOL also reset if you admit to oweing the debt verbally over the phone when speaking with a creditor? I've only read that it is reset if you either make a payment or acknowledge the debt in writing, but nothing about verbal. Thanks!

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Statute of limitations [ 9 Answers ]

Long story short... I have autobody bills outstanding, I have been sent all the invoices for them with the dates. The earliest date being 2 years ago and last one 4 years ago, this is the first letter sent about this issue. They tell me they will take me to court. What is the statute of...

Ontario Statute of Limitations for Lawsuits [ 4 Answers ]

The Proceedings Authorization Committee of the Law Society of Upper Canada (LSUC) will be addressing a list of complaints against my mother’s lawyer within the next month that I filed back in November 2004. After a very lengthy & thorough investigation, the assigned Law Society investigator has...

Statute of limitations [ 9 Answers ]

Hi, I live in Ontario, Canada and 10 years ago my father got into an accident at work which left him unable to work, he didn't know english and so he couldn't find another job, the insurance company didn't give us a penny for 5 years and so we were forced to go on welfare. I was about 11 years old...

Statute of limitations [ 6 Answers ]

What is the statute of limitations after taking chapter seven bankruptcy in the state of Illinois, for a second mortgage to be null if I have reafirmed on the 1st. Mortgage? I went bankrupt in 2001 I reafirmed on the initial mortgage and not on the 2nd. Can I ever sell the property without paying...

Statute of limitations [ 3 Answers ]

I went to renew my license in NY state and there is a hold from NM for a failure to appear for DWI from 1994.:eek: they said they" just updated their computers to add me to the system". The clerk I spoke to in NM said I "must pay bond" and "appear in NM" to resolve this issue.:mad: can I have...


View more questions Search