Why some old debts may become unenforceable — and why not every old account qualifies.
Prescription is a legal principle under the Prescription Act whereby certain debts may become unenforceable after a period of time, if specific requirements are met.
Common periods
Many ordinary consumer debts prescribe after three years, while judgment debts and certain other debts have longer periods.
What interrupts prescription
- A payment on the account
- A written or verbal acknowledgement of the debt
- The service of legal process
Because of these factors, each account must be assessed individually before concluding that it has prescribed.
CrediSure Consultings provides credit advisory and assistance services. Eligibility and outcomes depend on individual circumstances, creditor responses and applicable legal requirements. No specific result, credit score improvement, debt deletion or loan approval is guaranteed. Information on this website is general in nature and is not legal advice.