When do debt collectors give up?

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Debt collectors in Canada can pursue you indefinitely, but provincial laws dictate how long they can sue. Debts like credit cards have a 2-year limit in Alberta and BC, 6 in Ontario and Manitoba. Tax debts? Canada Revenue Agency can chase you for 10 years. Partner with a trustworthy Licensed Insolvency Trustee for options like consumer proposals. Have questions? Reach out via phone, text, or live chat! Not all trustees can be trusted.

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Debt Collectors Give Up Question

When do debt collectors give up? Debt collectors call me a lot and it makes me stressed. I want to know how long they keep chasing me before they finally give up.

From: Anonymous Question
Location: Charlottetown, PEI (PE)
Category: debt management plan

Debt Collectors Give Up Answer

In Canada, debt collectors have no time limit for pursuing debts, but they must play by the rules of each province. For most credit card debts, the clock ticks for about two years in places like Alberta and British Columbia, and around six years in provinces like Ontario and Manitoba. After that, suing you is off the table, though calls may still flood your phone. It’s a different ball game for debts under $5,000 to $10,000, as the court costs often make chasing them a losing game. But when it comes to tax debts, the Canada Revenue Agency can keep knocking for up to 10 years, so settling up might save you headaches down the road.

Feeling swamped by debt collector calls? Hook up with a Licensed Insolvency Trustee who can walk you through handy options like consumer proposals or debt settlements. Just make sure you’re teaming up with someone trustworthy—do your homework! Checking your credit report to unravel the age and status of your debts can offer some clarity. Even if legal fireworks are a no-go because a debt isn’t collectible, your phone might keep buzzing due to the absence of strict controls on calls. If you’re drowning in stress, exploring the statute of limitations or other debt-busting strategies could be your lifeline.

From: Insider Adam

Office of the Superintendent of Bankruptcy (OSB) Answer

Debt collectors in Canada typically do not have a fixed timeline for when they will stop pursuing a debt. However, under the Bankruptcy and Insolvency Act and related regulations, there are important time frames to consider. Generally, most debts can be pursued for a minimum of six years from the date of the last payment or acknowledgment of the debt, as outlined in the Limitation Act in various provinces, which governs the time limits for debt collection actions. After this period, the debt may become statute-barred, meaning that legal action to collect the debt can no longer be taken.

If you are facing continuous calls from debt collectors and find it stressful, you may consider discussing options such as a consumer proposal or debt settlement to address the underlying debt directly, which may alleviate the situation sooner than waiting for collectors to potentially give up.

From: OSB Helper

Related Questions to When Debt Collectors Give Up

Here are the top 5 most frequently asked questions related to “When do debt collectors give up?” in the context of Canadian debt and insolvency laws:

1. How long can a collection agency collect on a debt?

Debt collectors can technically collect on a debt indefinitely, but they can only take legal action within the statute of limitations period, which varies by province[1][3][5].

2. What is the statute of limitations on debt collection?

The statute of limitations on debt collection ranges from 2 to 6 years, depending on the province, after which creditors cannot take legal action to collect the debt[1][3][5].

3. Can debt collectors continue to call after the statute of limitations has expired?

Yes, debt collectors can continue to call and attempt to collect the debt even after the statute of limitations has expired, but they cannot take legal action[1][3][5].

4. How do I know if a debt collector is taking legal action against me?

You will know if a debt collector is taking legal action against you because they must take you to court and win the case; threats of legal action after the statute of limitations are generally empty[1][3].

5. Can filing for bankruptcy or a consumer proposal stop debt collection calls?

Yes, filing for personal bankruptcy or a consumer proposal can stop debt collection calls and protect you from further legal action by creditors[2][3][4].

If you have a question about debt see our debt questions or ask your own debt related question.

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