Limitation period for contract debt

March 25th, 2015 by Questions

Hi. I’m just wondering what the current limitation period for contract debt is in Alberta? I’ve been told it’s 2 years as well as 6 years by two different sources. Perhaps it has changed recently so I was hoping for some clarification. Thanks in advance.

Posted from: Alberta

Questions

One Response to “Limitation period for contract debt”


March 25, 2015 at 8:16 am, Doug Stuive, CA | Trustee | CIRP said:

The statute of limitations in Alberta is two years from the date you last made a payment to your creditor. This means that the creditors have that two year period to take legal action if you fall behind on your payments. After the two year period they can no longer seek legal remedies to receive payment, including obtaining a judgement or wage garnishment from the Courts. This does not mean that the debt is forgiven. The debt is still collectable and the creditor can continue to contact you for payment and can continue to report to the credit bureau.

The six year period that was given to you more than likely refers to the time frame that a debt will fall off your credit bureau report. Debts that are not active after a six year period are removed from your credit report after six years.

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