Can a creditor still sue me for a debt that is several years old in Ontario?
In Ontario, most debts are governed by the Limitations Act, 2002. The basic limitation period is two years from the day you knew — or ought to have known — that you had a legal obligation and the creditor could have started a lawsuit. Once that two-year window closes, the creditor loses the right to sue, even if the underlying debt still exists.
There are exceptions. The limitation clock can restart if you make a payment on the account or acknowledge the debt in writing after the original default — for example, by signing a new payment arrangement. Some debts, such as certain judgments and government-owed amounts, carry different or longer periods.
Being outside the limitation period does not erase the debt — a creditor can still ask you to pay and may report it to credit bureaus — but they cannot succeed in court. If you have been contacted about an old debt, speak with a lawyer before making any payment, because even a small payment could revive the limitation period.
Key takeaways
- Ontario's general limitation period is two years from discovery of the claim.
- Acknowledging or paying a debt can restart the clock.
- A statute-barred debt still exists; the creditor simply cannot sue to collect it.
- Get legal advice before paying an old debt to avoid inadvertently reviving the limitation.