How long can a debt be collected in Ontario?

A creditor generally has two years from the day the claim is discovered to start a lawsuit, under the Limitations Act, 2002. After that, the debt is usually statute-barred — meaning a court can dismiss the claim if you raise the limitation period as a defence.

Does the two-year clock ever restart?

Yes. Under section 13 of the Limitations Act, 2002, a written and signed acknowledgment of the debt, or a partial payment, made before the period expires restarts the two years. Once the period has already expired, a later acknowledgment usually cannot revive it.

If my debt is too old, will the case be thrown out automatically?

No. An expired limitation period is a defence you must raise. If you ignore the claim, you can still lose by default even on an old debt. You generally need to file a defence that pleads the limitation period.

Can making one small payment hurt me?

It can. A partial payment can be treated as acknowledging the debt and restart the clock if the period has not yet expired. Get advice before paying or signing anything in response to an old debt.

Is Your Debt Too Old to Sue? Ontario’s 2-Year Limitation Period

Reviewed by Angelos Spingos, Principal Lawyer, Spingos Law · Licensed by the Law Society of Ontario · Last reviewed June 29, 2026

One of the most powerful — and most overlooked — defences to a debt lawsuit in Ontario is timing. If a creditor waited too long to sue, the claim may be statute-barred.

The basic rule: two years

Under Ontario’s Limitations Act, 2002, the basic limitation period is two years. A creditor generally has two years from the day the claim is discovered to start a proceeding. For a debt, discovery is usually when the account went into default and the creditor knew (or should have known) it had a claim — often tied to the date of the last payment or activity.

Once those two years pass, the debt is typically statute-barred: it still exists, but a court can dismiss the lawsuit if you raise the limitation period.

The clock can restart. Under section 13 of the Act, a written, signed acknowledgment of the debt or a partial payment — made before the two years run out — restarts the period. Even an email acknowledging the amount can count. Once the period has already expired, however, a later acknowledgment generally cannot bring it back.

Why this matters the moment you are sued

An expired limitation period is not automatic. It is a defence you have to raise. If you ignore the claim, you can lose by default judgment even on a debt that was far too old to sue on. To use the defence, you generally must file a Statement of Defence (or a Small Claims Defence) that pleads the limitation period.

Common mistakes that destroy this defence

Making a payment on an old debt to “buy time” — it can restart the clock.
Signing or emailing anything that admits the amount owing.
Ignoring the claim because you assume it is too old to matter.

One more time limit to know

Separately, the Act sets an ultimate limitation period of 15 years from the date of the act or omission, regardless of discovery. For most consumer debts the two-year rule is the one that decides the case.

Whether a specific debt is statute-barred depends on the dates and the paper trail. This is exactly the kind of question a short legal review can answer before you respond to a claim.

Frequently asked questions

How long can a debt be collected in Ontario?: A creditor generally has two years from the day the claim is discovered to start a lawsuit, under the Limitations Act, 2002. After that, the debt is usually statute-barred — meaning a court can dismiss the claim if you raise the limitation period as a defence.
Does the two-year clock ever restart?: Yes. Under section 13 of the Limitations Act, 2002, a written and signed acknowledgment of the debt, or a partial payment, made before the period expires restarts the two years. Once the period has already expired, a later acknowledgment usually cannot revive it.
If my debt is too old, will the case be thrown out automatically?: No. An expired limitation period is a defence you must raise. If you ignore the claim, you can still lose by default even on an old debt. You generally need to file a defence that pleads the limitation period.
Can making one small payment hurt me?: It can. A partial payment can be treated as acknowledging the debt and restart the clock if the period has not yet expired. Get advice before paying or signing anything in response to an old debt.

Sources

Limitations Act, 2002, S.O. 2002, c. 24 (ss. 4, 5, 13, 15) · Ontario Rules of Civil Procedure. General information for Ontario, not legal advice.