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Old 08-28-2015, 05:27 AM   #1
Tempest
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Default Canadian debt, questions about statute barred

Hello!

I am a Canadian who moved to the UK 8 years ago in spring. I did this as I had met a British man and we wished to start a relationship.

I admit I was a bit young and stupid at the time and I just walked away from my student loan debt etc.

My husband and I are now thinking about moving home to Canada as we feel our quality of life would be much better there. However, here in the UK we have good credit (in fairness to hubby he always has!) but here I have a credit card and car loan etc, and have learned to use credit responsibly. We have a mortgage and don't struggle to get loans and we have no late payments or bad debt here.

I have pulled my Equifax report today to see what I might be walking back into in Canada but I'm struggling to understand what on here will affect me.

I have two things that show under collection accounts. Both say the last payments I made were in October 2011 and April 2011 respectively, however the amount of the debt is small, $600 and seems to be the same debt passed from HSBC collections to HSBC. So it seems it should be straight forward that in April 2017 and October 2017 these should drop off due to age, even if they are the same debt? It looks like the passed it from one to the other in 2015. Does statute barred only go by the date of last payment?

One of my provincial student loans shows that I last paid on it on 2012. They have since sold it on but the two items under collections both show the last activity as above, 2011. So will the provincial loan stay on 'bad debt' until 2018? Or if it's not in collections does it not affect me?

I'm just wondering if I'm better off staying in the UK for another couple of years where I can buy a house and a car even though I really want to move home, or if I should move home and try to sort the mess out. We will have some money in the bank to get us started as we have equity in our home so it is possible I could settle a lot of the smaller ones, but I don't want to drag my other half down with me as he has good credit but being linked to me in Canada might give him bad credit there if I have really bad credit. We would also want to buy a house not rent, which would obviously seem like it would be impossible at first, unless there is a way for him to do it on his own without being linked to me.

I also don't know how the fact I've been living abroad changes it all. I didn't move to escape my debt, I moved to get married and just sort of stuck my head in the sand about the debt. I couldn't afford to pay it in Canada at the time and I couldn't afford to send money home to pay it from over here either. My CDA loans show a last activity of 10/10 but will they ever become statue barred? I opened them in 2001 if it matters.

If there is a better place for me to ask for this advice I would be grateful for the information!

Thanks

T
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Old 08-28-2015, 12:49 PM   #2
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Default Re: Canadian debt, questions about statute barred

There is a six year statute of limitations in most Canadian provinces, none in Ontario for collecting on student loans. The statute runs from when you made your last payment.

The source is the Canada Student Loan Act, Section 19.1. Now this is federal. The provincial acts vary, however, so it makes a difference whether the student loan(s) are provincial or federal.

The six-year statute of limitations does not apply in Ontario for in Ontario there is no statute of limitations to collect on province-insured student loans.
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Old 09-15-2015, 08:22 AM   #3
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Default Re: Canadian debt, questions about statute barred

The Federal and Provincial Governments have Limitation Acts which provide a limit on the time an unsecured debt can be perused by legal proceedings. If an unsecured debt is not collected, or payments are not made on the unsecured debt within these time limits, then legal action cannot be taken by the creditor. For more information about statute of limitations for Canadian debt, please check out the Credit Collection forum. Federal– Section 32 of the Crown Liability and Proceedings Act sets 6 years as the limit for debt. Consumers, however must be careful when dealing with the statute of limitations regarding debts at the Federal or Provincial Government level. These include student loans, child support, taxes and alimony. It is also important to note that limitation can be reset. Limitations begin when a cause of action arises, this is typical the date of last activity or the date of last payment, therefore if you have a bad debt and you start making payments, the statute of limitations resets. The running of a limitation period in respect of a guaranteed student loan is suspended during any period in which it is prohibited to commence or continue an action or other proceedings against the borrower to recover money owing under the loan.
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Old 09-15-2015, 04:10 PM   #4
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Default Re: Canadian debt, questions about statute barred

Quote:
Originally Posted by Lexus View Post
The Federal and Provincial Governments have Limitation Acts which provide a limit on the time an unsecured debt can be perused by legal proceedings. If an unsecured debt is not collected, or payments are not made on the unsecured debt within these time limits, then legal action cannot be taken by the creditor. For more information about statute of limitations for Canadian debt, please check out the Credit Collection forum. Federal" Section 32 of the Crown Liability and Proceedings Act sets 6 years as the limit for debt. Consumers, however must be careful when dealing with the statute of limitations regarding debts at the Federal or Provincial Government level. These include student loans, child support, taxes and alimony. It is also important to note that limitation can be reset. Limitations begin when a cause of action arises, this is typical the date of last activity or the date of last payment, therefore if you have a bad debt and you start making payments, the statute of limitations resets. The running of a limitation period in respect of a guaranteed student loan is suspended during any period in which it is prohibited to commence or continue an action or other proceedings against the borrower to recover money owing under the loan.
Read my reply to her post. Student loans can be made under the federal OR provincial acts.

In Ontario, which is where the poster is from, made the loan, there is no statute of limitations.
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