Is The Debt Still Owed if it Cannot be Collected?

Is The Debt Still Owed if it Cannot be Collected?

A guy comes in to ask about a Consumer Proposal. He owes Amex $15,000. They have not contacted him in eight years. Does he have to include it on his list of liabilities?

The question is whether a debt barred by the Statute of Limitations should be included on a list of liabilities at all.  So, is the debt still owed if it cannot be collected? Can the claim be proven in a bankruptcy or consumer proposal?

The short answer appears to be that a statute-barred claim should still be included: the debt is not extinguished, it’s just not collectible.

Here is an interesting and quick article on the subject: http://www.casselsbrock.com/CBNewsletter/All is Not Lost if a Limitations Period Missed (hat tip to Howard Landau)

Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.