Does signing a written acknowledgment of a debt restart the limitation period in Ontario?

Yes — under Ontario's Limitations Act, 2002, a written and signed acknowledgment that a debt is owed can restart the limitation clock, treating the date of the acknowledgment as a new starting point for the limitation period, rather than the original date the debt became due or was discovered. This means a debtor who signs something acknowledging they still owe money, even without making any payment, can hand a creditor a fresh limitation period, extending how long the creditor has to sue on the debt beyond what would otherwise have applied.

This provision matters most in situations where a debt is old enough that the original limitation period is approaching, or may have already expired, and a creditor is seeking some form of written confirmation from the debtor before deciding whether to sue. A debtor negotiating repayment terms, requesting more time, or responding to a collection letter in writing should be cautious about language that could be read as acknowledging the debt is still validly owed, since that acknowledgment can have real legal consequences beyond the immediate conversation. Getting advice before signing anything that touches on an old or disputed debt is generally worthwhile, particularly where the amount involved is significant.