What is the maximum time frame a creditor has to collect a debt?
What legislation / regulation governs this?
If these regulations exist, do they apply in the event of a failed consumer proposal or OPD?
Statute of Limitations
Posted on Tuesday, November 28, 2006
posted by Questions @ 9:49 pm
1 Expert Comment:
At November 29, 2006 |
2:37 pm
, Barton Goth, GCO Inc. Bankruptcy Trustees Said...
The guiding legislation results from the Alberta Limitations Act. Under this legislation collection attempts must be attempted within either (i) two years after the person making the claim knew or ought to have known of the claim, or (ii) 10 years after the claim arose, whichever period first expires. While this is the basic template of how things are treated, there are a variety of exceptions to this depending on what type of claim is involved. Also keep in mind, all they have to do is make a collection attempt, if they have attemped collection from out dated contact information, this counts as it is you who is required to inform them of any change of address etc. that you may have had.
In terms of how these regulations are impacted by the a failed consumer proposal or orderly payment of debt, there is a court case that deals with this exact issue (Attorney General v. Fekete). This case found that the presence of the legislated stay (i.e. OPD / consumer proposal) is simply suspended during the time that it is in place. For more information on this you would probably be best to contact either a solicitor who is familiar with the Alberta Limitations Act or a licensed trustee directly.
Please type your comment below:You must be logged in to post a comment.
