First of all I live in Ontario Canada I have numerous debts and from reading this area I have seen 6 year SOL and 2 year S0L as of jan 04 what is it? Also (two parter here) to my understanding someone can make a statement of claim against you up to 6 years (or 2 years depending on the first part of my question)... now in the 6th year (or 2nd year) if this person corp or what ever puts a claim in against you would it not be another 6 years(or 2 years) for them to make a claim against you?

I have no clue what you are asking. All your 6/2 years confused me.

So here it is (general):

The SOL on all debt claims that arose before Jan 1/04 is 6 years. And 2 years after Jan 1/04.

So, if I lent you money and you were suppose to pay me back in March 2002, I have until March 2008 to file a law suit against you.

If you were suppose to pay me the money in March 2004, then I can only file a law suit against you until March 2006.

The SOL starts from when you first stop making payments and a break in the contract has been made.

For example. If in 1999, I bought $100 of items on my credit card. Every month I made the minimum payment and in 2003, I had $30 left on my credit card. Then I stopped paying. The SOL started from that missed payment in 2003, which will last until 2009.

Thank you for your response- Now is that for all credit such as an unsecured line of credit? And where does it state Jan 04? Is there some government site?

You're welcome.

Yes, that above information would be for all unsecured debt, like a credit card.

Where does it state Jan 1, 2004?

See the statute itself.

It was passed in 2002 I believe, but did not go into force until Jan. 1, 2004.

See the opening paragraph at: Limitations Act, 2002

I have bolded the date.

Quote:

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By amendment of S.O. 2002, chapter 24, section 26, Parts II and III of the Limitations Act (R.S.O. 1990, chapter L.15) were repealed. The remaining portion of the Act (the definitions and Part I) dealt exclusively with real property limitations. To reflect this narrowed scope, the Act was renamed the Real Property Limitations Act. A new Act, the Limitations Act, 2002, was enacted to deal with limitation periods other than those affecting real property. The text of the Real Property Limitations Act can be found by clicking the Browse by Title button on the navigation bar. The text of the Limitations Act (R.S.O. 1990), as it read before the amendment by S.O. 2002, chapter 24 came into force on January 1, 2004, has been included on this site as a historical version to the Real Property Limitations Act. For information about historical versions, click on the “What's Included” Link on the home page and then click on “Contents of this Site.”

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Again thank you for your great response- Here's something I read in regards to 15 years ultimate limitation any knowledge on that and how it could be used against someone?-

Ontario's new Limitations Act, which became effective January 1, 2004, shortens the basic limitation period to two years (from six years) with an ultimate limitation period of 15 years. The two- year limitation period now runs from the time a party discovers, or ought to have discovered, it has a claim. This "discoverability" aspect results in some uncertainty as to when a limitation period for a particular claim will start to run.

What's happening with me is that I would probably have to go bankrupt. I have a business I owe GST and I have a 15 year old student loan. This would be my second time going bankrupt which means I have to undergo a 2 year discharge and 14 years black mark on my credit bureau. We have a house with some equity but not much a trustee told me that because I have young kids in all likelihood I would not be pushed out of the house. They will however go after my wife who is not working and then she would go bankrupt. But she would not have to if there is a two year limitation? Am I right?

You should consult with a bankruptcy attorney.

When it comes to the govt and taxes (GST), I wouldn't necessarily put anything past them.

They have a way of making their own rules at times.

As for the student loans, I believe you can declare bankruptcy on them after 10 years I think.

Your answers are bang on and I appreciate the time you have put into this... one more question if I may what is this 15 year ultimate... everything is gibberish to me can you give me the layman's interpretation please?

You're welcome Lipton.

Ok, a layman's interpretation.


EXAMPLE 1:
Let's say I lend you $1,000 today, March 2007 and you promise to pay it back to me on July 1, 2007.

July 1, 2007 comes along, and you do NOT pay me back.

Well, the SOL starts on July 1, 2007. The day that I first discovered you wronged me (by not paying me my money). Therefore, the SOL runs until July 1, 2009.


EXAMPLE 2:
I am your accountant.

You come to me today, March 2007 and ask me to prepare your 2006 tax returns. I do it for you, and I tell you that you owe $18,000 in taxes. You pay your taxes, pay me a $1,000 fee and we say good bye. Next year and all other years, you decide to do your taxes on our own (just to simplify the example).

Now on February 3, 2010, the CRA (Canada Revenue Agency) calls you up and says, we are doing an audit of you for the years 2005, 2006, 2007 and 2008.

They investigate and come to the following conclusions:
- Your 2005, 2007, 2008 taxes were done perfectly
- Your 2006 taxes were done incorrectly. You only paid 18,000 in taxes, you should have paid 38,000! You now owe 20,000 PLUS interest.

Well, I did your 2006 taxes. I wronged you.

If we go by the 2 yr SOL…I did the work for you March 2007, so the SOL would have expired in March 2009.

It is now 2010, what can you do?

Well, the SOL starts on the day the CRA informs you of the problem. The day you first learned you were wronged.

So the SOL would run from Feb 2010 – Feb 2012

Now, the ultimate limitation period basically means you can't come back after me forever and ever. If you don't realize I made a mistake until May of 2037, well, you are out of luck. It has been way too many years (30) to come after me. You only have a MAXIMUM of 15 years.

If you realized the mistake after 14 years, then you would only have 1 year of SOL remaining.

And for the Limitations Act from Ontario's website directly, it is: Limitations Act, 2002, S.O. 2002, c. 24, Sched. B

Same context as the other link, just a different source.

Wow talk about layman's terms thanks Captain clear as glass

You're welcome Lipton