Old debt? After 2 years, they usually can't sue.
In Ontario, a creditor generally has two years to take you to court over a debt. After that, it's usually too old to sue over. But the debt doesn't vanish, a collector can still call, and one wrong move can restart the clock. Here's how it works.
Free. No payment to start. This is information, not legal advice.
In 30 seconds, here's what's true
- In Ontario, a creditor or collector usually has 2 years to sue you over a debt, counted from when you last paid or the debt came due. This comes from the Limitations Act, 2002.
- After that 2 years, the debt is too old to sue over. But a court won't throw the case out on its own. You have to show up and raise the expired deadline yourself.
- The debt doesn't disappear. It still exists, a collector can still ask you to pay, and it can still show on your credit report for a while.
- Making a payment, or admitting the debt in writing, can restart the 2-year clock, but only if the deadline hasn't already passed. That's the trap to watch for.
- The 2-year rule doesn't cover everything. Money owed to the CRA for taxes follows different, federal rules.
How the process works
Find the last activity date
Look for the last time you made a payment or admitted the debt in writing. The 2-year clock generally runs from around then, not from when the collector started calling again.
Work out if 2 years have passed
If it's been more than two years since that date, the debt is likely too old for them to win a lawsuit. If you're close to the line, be careful and get advice before you do anything.
Don't restart the clock by accident
Don't make a payment or put anything in writing admitting an old debt until you've confirmed the date. On a debt that isn't expired yet, a payment or a written admission resets the full two years.
Handle the collector calmly
A collector can still contact you, but there are rules: limited call times, no harassment, and no threats of court action they can't back up. You can tell them in writing to deal with you only in writing.
Get advice if you're sued
If a court claim arrives, don't ignore it. Respond by the deadline and raise the expired time limit as your defence. A community legal clinic can help you do this for free.
What to do next
- Find the date of your last payment or written admission of the debt.
- Count whether more than 2 years have passed since then.
- Don't pay or sign anything on an old debt until you've checked the date.
- Ask the collector to communicate with you only in writing.
- Know the collection rules: limited call times and no harassment.
- Check your credit report to see if the debt still shows.
- If you're sued, respond by the deadline. Don't ignore it.
- Raise the expired time limit as your defence, and get free legal help.
Common myths
| Myth | Reality |
|---|---|
| If the debt is old, it just disappears. | No, the debt still exists. Too old to sue over just means they probably can't win in court, not that the money you owe has disappeared. |
| The court will automatically toss an old debt. | It won't, so you have to show up and raise the expired deadline yourself. If you ignore the case, they can still get a judgment against you. |
| A collector can't contact me about an old debt. | They can. But there are limits on when and how, and they can't harass you or make threats they can't back up. |
| Making a small payment can't hurt. | It can. On a debt that isn't expired yet, a payment or a written admission restarts the whole 2-year clock. |
| It fell off my credit report, so they can't sue me. | Those are two different things. Credit reporting and the deadline to sue are separate. Check the last-payment date, not the credit report. |
| The 2-year rule covers every kind of debt. | No. Tax debt owed to the CRA runs on different federal rules, not the 2-year limit. |
| If they threaten court, they must be allowed to sue. | Not always. A collector can't threaten legal action they don't have the authority to take, and old debts are often past a winnable lawsuit. |
| There's nothing I can do but pay. | You can confirm the date, raise the deadline if you're sued, and get free help from a legal clinic before you decide anything. |
Last reviewed July 2026
Written and reviewed by the founder of PLAIN, checked against primary government and legal sources. How we research these guides
Sources
PLAIN gives legal information, not legal advice. It is not a substitute for a lawyer or paralegal — and we'll point you to free ones. Laws change; we review these pages regularly, but always confirm current rules with a licensed professional.
Free. No payment to start. This is information, not legal advice.