{"id":10474,"date":"2021-03-15T19:00:24","date_gmt":"2021-03-15T23:00:24","guid":{"rendered":"http:\/\/www.irasmithinc.com\/blog\/?p=10474"},"modified":"2021-06-07T10:45:25","modified_gmt":"2021-06-07T14:45:25","slug":"statute-of-limitations","status":"publish","type":"post","link":"https:\/\/irasmithinc.com\/blog\/statute-of-limitations\/","title":{"rendered":"STATUTE OF LIMITATIONS: IS STATUTE BARRED DEBT A BASIC PROPER BANKRUPTCY CLAIM IN ONTARIO?"},"content":{"rendered":"
\"statute<\/a>
statute of limitations<\/em><\/strong><\/figcaption><\/figure>\n

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Know Your Limitations<\/i><\/b>:\u00a0 The <\/b>Basic Limitation Period in Ontario<\/i><\/b><\/h2>\n

The <\/span>basic limitation period<\/span><\/i> in Ontario is 2 years from the date knowledge of the claim arises. The phrase “<\/span>statute of limitations<\/i><\/b>” is used to describe this time period.\u00a0 This is the time period between when you discover you have a claim and when you are legally permitted to bring that claim forward in a court of law. If you do not file your lawsuit within the 2-year limitation period, your right to sue will be extinguished and your claim will be forever lost.\u00a0 This is known as your claim being <\/span>statute barred<\/span><\/i>.<\/span><\/p>\n

Statute of limitations<\/i><\/b>:\u00a0 <\/b>Limitations Act, 2002<\/i><\/b>, S.O. 2002, c. 24, Sched. B<\/b><\/h2>\n

Each province has its very own rules, but the policies are comparable throughout the nation.\u00a0 <\/span>In Ontario, the period is set by the <\/span>Limitations Act, 2002<\/span><\/i>, S.O. 2002, c. 24, Sched. B <\/span><\/a>(Act).\u00a0 The Act sets out <\/span>a time limit as to when <\/span>legal proceedings<\/span><\/i> might be commenced by suing. It defines the time in which an aggrieved person can start a claim developing from any type of injury, loss, or damage that happened as a result of an act or an omission.<\/span><\/p>\n

The Act sets out the two-year limitation period as follows:<\/span><\/p>\n

“<\/span>Basic limitation period<\/b><\/p>\n

4 <\/b>Unless this Act <\/span>provides<\/span> otherwise, a proceeding shall not be commenced in respect of a claim after the second anniversary of the day on which the claim was discovered.\u00a0 2002, c. 24, Sched. B, s. 4″<\/span><\/p>\n

This is where the 2-year <\/span>statute barred<\/span><\/i> period of time is set in Ontario <\/span>limitations law<\/span><\/i>.<\/span><\/p>\n

Can Your Debt Be Eliminated by the Statute of Limitations in Ontario?<\/b><\/h2>\n

Most people don\u2019t realize that their debts can expire, just like the milk at the back of your fridge. In fact, while you can\u2019t get rid of your debt by throwing it in the garbage, it can be eliminated by the <\/span>basic statute of limitations<\/span><\/i> under the Act. Debt is not considered timeless in Ontario.<\/span><\/p>\n

There are two other main concepts under the Act also, which are not part of the discussion in this <\/span>statute of limitations<\/span><\/i> Brandon Blog.\u00a0 The two other main concepts are:<\/span><\/p>\n