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Difference between revisions of "Creditors' Remedies against Debtors (10:III)"
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Creditors' Remedies against Debtors (10:III) (view source)
Revision as of 21:20, 17 August 2019
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{{LSLAP Manual TOC|expanded = creditors}} | {{LSLAP Manual TOC|expanded = creditors}} | ||
Before taking action against a debtor, a creditor must provide a reasonable time for payment on a demand loan or term loan. That time begins to run from the date of the demand for payment and not the date of the loan. What constitutes a reasonable demand period depends upon the facts of each case. For a list of factors to be considered see Royal Bank of Canada v. W. Got Associates Electric Ltd., [1999] 3 SCR 408, 1999 CanLII 714 (SCC), para. 18). | |||
*a) | Under the current Limitation Act, in British Columbia the period for when a proceeding for the collection of a debt must be commencted is 2 years from the “date of discovery” of the claim. The date of discovery is defined as the day on which the claimant knew or ought reasonably to have known all of the following: | ||
*b) | *a) that injury, loss or damage had occurred; | ||
*c) | *b) that the injury, loss or damage was caused by or contributed to by an act or omission; | ||
*d) | *c) that the act or omission was that of the person against whom the claim is or may be made; | ||
*d) that, having regard to the nature of the injury, loss or damage, a court proceeding would be an appropriate means to seek to remedy the injury, loss or damage | |||
If however, the cause of action occurred prior to the coming into force of the revised ''Limitation Act'', the previous limitation periods remain in effect. Therefore, if the debtor’s acknowledgement in writing of the cause of action, or the last payment on the debt occurred prior to June 1, 2013, then the limitation period for the commencement of proceedings for the collection of debt is 6 years from that time. | If however, the cause of action occurred prior to the coming into force of the revised ''Limitation Act'', the previous limitation periods remain in effect. Therefore, if the debtor’s acknowledgement in writing of the cause of action, or the last payment on the debt occurred prior to June 1, 2013, then the limitation period for the commencement of proceedings for the collection of debt is 6 years from that time. | ||