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* year old debt

I had credit cards (zellers, visa, canadian tire) cards 8-10 years ago. I had balances that I could not handle at the time totalling 2000.00 for each card. After it being on my crdiet bureau for 8 years collection agencies are bugging my for their money. My credit report is great right now and was wondering if they can destroy it again. I am in the middle of purchasing a new home and I am worried this might affect it? Can they ruin it again for me. Isn`t there a statue of limitations of 7 years?

Posted from: Ontario

One Response to “* year old debt”

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Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

There may be a few actions the collection agents can do to get the debt re-listed on the credit bureau (il.e. r-registering any judgments).

As for the statute of limitations, yes there is a piece of legislation that states after a certain period of time unless certain actions have been taken to preserve the right of collection then the debt is extinguished. The actual cut-off is now 2 years, but it is very easy for a creditor to take nominal action and every time they do they 2 year clock starts ticking once again. So in practice the statute of limitations doesn’t often impact debts as most institutions are very savvy about the process and know exactly what needs to be done to preserve their right of collection.