Hi all nice people,
Could someone plz help us making this complicated process understand. My friend has a default judgement on his file from 2006 on his credit card loan he was out of Ontario since then, now he wish to move back and wants to know that if he moves back would he be able to open his bank account. If he start working would he be entiteld of his GST/PST returns or it will be fortitted by the credit collection agencies or his bank under "Right to Set off" rules. (or right to sett off rule is applicable only on student loans) If he contact credit bearu to get his credit report will this be counted and activity on his file and the clock will start again for 2 years or how system works in deafult judgement cases. please someone help him. Thanks

From what I have read it comes into effect June 1/2013.

So any debts that went into default prior to that date will still fall under the 6 yr SOL.

Hi, so is the new act in place now and is the date at the top the date that the act starts?

http://www.bclaws.ca/EPLibraries/bclaws_new/document/ID/freeside/00_96266_01

I have been reading the posts on Canada student debt.ca and here and you guys are like the guys from pirate bay that put torrents up like demonoid but you're all about debt. It's awesome. It really is.

Thank you for the clarification.

In other words....if your debt is governed by the previous 6 yr Sol....if you restart it by acknowledging the debt it resets back to 6 years regardless if the new Sol is now in effect.

There is no such thing in B.C. as a Royal Accent (sic), however, in order for government legislation to be passed into law, it must receive Royal Assent.

The new B.C. Limitation Act was given Royal Assent on April 26, 2012 but has yet to be proclaimed in force by regulation. That becomes the responsibility of the Lieutenant Governor in Council which in essence is the Premier of B.C.

The two major changes to this legislation is that it reduces the limitation period for the collection of debts ( excluding government debts such as student loans ) from six years to two years and it reduces the ultimate limitation period from thirty years to fifteen years.

A new Section 86.1 has been added to the B.C. Financial Administration Act providing for a six year limitation period for government debts which, of course, includes Provincial government student loans. This is consistent with the limitation period provided by the previous Limitation Act, R.S.B.C., 1996, c 266. It is also consistent with the limitation period provided for Federal government debts including student loans purssuant to Section 32 of the Crown Proceedings and Liability Act.

In other words, for all commercial and consumer debts, the new limitation period will be two years, however, for all Federal and Provincial student loans that have gone into default, the limitation period remains at six years.

Section 30 of the new Limitation Act provides the Transition rules for inter alia, commercial and consumer debt such as credit card defaults and is based on the "Discovery" principle. In essence, if a commercial or consumer debt has been "Discovered" prior to the coming into force of the new Limitation Act, then the rules of the previous Limitation Act prevail. On the other hand, if a commercial or consumer debt has been "Discovered" after the coming into force of the new Limitation Act, then the rules of the new Limitation Act prevail.

In response to your query regarding limitation periods for different types of debt, the following applies:

Any credit card issued anywhere in Canada to a resident of B.C. that subsequently goes into default after the new Limitation Act comes into force comes under the new Limitation Act. If the credit card goes into default before the new Limitation Act comes into force, it comes under the previous Limitation Act.

There are no Canada ( Federal ) or B.C. ( Provincial ) guaranteed student loans issued by banks. All applications for student loans are now done through the Canada -- B.C. Integrated Student Loan Program administered by the National Student Loan Service Centre ( NSLSC ). All funds are directly deposited into the student's bank account from both the Federal and Provincial governments. Should a student loan debtor experience financial difficulty in repaying their student loans, both the Federal and Provincial loans qualify for the Repayment Assistance Plan.

Both Federal and Provincial student loans that go into default, there is a six year limitation period in which the governments can litigate ( i.e. sue the student loan debtor ) the loan and obtain a judgment. For Federal student loans, Section 32 of the Crown Proceedings and Liability Act applies and for Provincial student loans, Section 86.1 of the B.C. Financial Administration Act applies. In addition, Subsection 164(2) of the Income Tax Act ( Canada ) provides for the "right of set-off" of any monies payable to Her Majesty in Right of Canada or to a Province. That means that any income tax refunds or quarterly GST rebates payable to the taxpayer can be applied against any outstanding and unpaid student loans.

It should also be noted that once a limitation period expires, it cannot be restarted again. However, you should be aware that any acknowledgement of any debt WITHIN a limitation period resets a new limitation period. Any acknowledgement of a debt OUTSIDE a limitation period will NOT reset a new limitation period.

I trust this commentary will help you better understand how the new B.C. Limitation Act will apply to commercial and consumer debt and the application of the limitation periods to both Federal and Provincial student loans.

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Educating one Consumer at a time

Right then here is a question. If I have a debt that is governed by the 6 year rule, but the 2 year rule is now in effect and I restart the SoL clock on the debt does the clock run for two years or six?

Excellent thank you.

Read section 30 of the new act.