I loaned my brother $10,000 about 14 months ago. He promised to pay some money back in one year, but has not paid anything as yet. I had him sign an agreement that he would pay me but it did not say when he should start paying it back. When I talk to him, he says do not worry. Should I just wait and see if he pays me, because I know that I am really going to need this money someday if I want to buy a house?
May 3, 2017
The Limitations Act of Ontario sets 2 years as the term for commencing a claim to recover a debt. Since the loan was made 14 months ago, you have 10 more months left to initiate a claim if your brother does not repay the amount. If you do not initiate a claim within 2 years from the date the loan was made, your claim will be “barred by limitation” i.e. you will not be able to claim the money through Court. However, the limitation period is extended where your brother acknowledges in writing about the debt or makes a partial payment towards the debt.