You have a limited number of years to sue for an unpaid invoice, and once that limitation period runs out the debt is legally unenforceable no matter how clearly it is owed. In most provinces the basic limitation is 2 years from when you knew the invoice was due and unpaid. Quebec is 3 years. Newfoundland, Prince Edward Island, Yukon, the Northwest Territories and Nunavut are 6 years. A written acknowledgement of the debt, or a part-payment, made before the period expires resets the clock, which is why getting the debtor to admit the amount in writing is worth real effort. This clock is separate from, and longer than, the lien deadline.
The basic limitation period, province by province
The basic period is the outer deadline to start a court claim. From the verified per-province figures:
- 2 years: Ontario, British Columbia, Alberta, Saskatchewan, Manitoba, Nova Scotia and New Brunswick. In these provinces the clock starts on a discovery test: the day you knew, or ought to have known, that the loss happened, who caused it, and that suing is the appropriate remedy. For an unpaid invoice that is almost always the due date.
- 3 years: Quebec, under article 2925 of the Civil Code of Quebec. The clock starts when you have the right to demand payment.
- 6 years: Newfoundland and Labrador, Prince Edward Island, Yukon, the Northwest Territories and Nunavut. These older statutes run from the date the cause of action arose (the due date) rather than a discovery test.
There is usually also an ultimate cap that applies regardless of discovery: 15 years in Ontario, British Columbia, Saskatchewan, Manitoba, Nova Scotia and New Brunswick; 10 years in Alberta; and in Newfoundland and Labrador the ultimate limitation is 30 years under section 22. For an ordinary unpaid invoice the basic period is the one that bites.
How a written acknowledgement resets the clock
This is the single most useful tool for an aging debt. In every common-law province, a written, signed acknowledgement of the debt made before the limitation period expires restarts the basic period from scratch. A part-payment counts as an acknowledgement too. An email or text where the debtor says "I know I owe you, I will pay next month" can be enough in most provinces.
Quebec is stricter: under article 2898 of the Civil Code, the acknowledgement must be a clear and unequivocal recognition of the right. A vague offer to settle or negotiate does not interrupt prescription there. So whatever the province, get the admission in writing and keep it.
The collection pathway
Work the steps in order, and keep a paper trail at every stage:
- Demand letter. Send a written demand setting out the invoice number, the amount, the original due date and a firm new deadline, usually 10 to 14 days. State that you will pursue your remedies if it is not paid. Courts expect you to have tried to resolve it first, and the letter builds your evidence. In Quebec the formal demand (mise en demeure) is what starts interest running.
- Small claims court. For amounts within the limit, this is the cheapest route and is designed for use without a lawyer. The limits: Ontario $50,000 (raised from $35,000 on 1 October 2025), Alberta $100,000, Saskatchewan $50,000, British Columbia $35,000 in Provincial Court (with the Civil Resolution Tribunal up to $5,000), Nova Scotia $25,000, Newfoundland $25,000, Yukon $25,000, Manitoba $20,000, New Brunswick $20,000, Nunavut $20,000, Prince Edward Island $16,000, Quebec $15,000, and the Northwest Territories $35,000. Note that in Quebec, lawyers are not permitted at the small claims trial.
- Default judgment. If the debtor is served and does not file a defence in time, you can apply for default judgment, essentially a win without a hearing.
- Enforcement. A judgment is not payment; it is a tool. With it you can garnish wages or bank accounts, register a writ against land to block a sale or refinancing, or have the sheriff seize and sell property. You generally have 10 years to enforce a judgment.
Where this sits next to your lien deadline
The limitation period is your safety net, not your first move. The lien deadline is far shorter (30 to 90 days) and unforgiving, and missing it cannot be cured by the longer limitation clock. So if you supplied to an improvement on land, preserve the lien first (see Lien Deadlines by Province), then chase the debt. Even if you miss the lien, you can still sue for the debt within the limitation period; you simply lose the security against the land.
Common mistakes
- Letting the period lapse. Two years (three in Quebec, six in the Atlantic and territorial jurisdictions) goes faster than you think once a job ends.
- Not getting the admission in writing. A verbal "I will sort you out" does nothing. A signed note or a part-payment resets the clock.
- Assuming Quebec works the same. A casual offer to settle does not interrupt prescription in Quebec; it must clearly acknowledge the debt.
- Suing for more than the small claims limit. Know your province's ceiling before you file, or you will be sent to the higher court.
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