PRESCRIPTION is a procedure for extinguishing a debt if it is not claimed within the time prescribed by law.
1) INCOME SECURITY AND EMPLOYMENT-ASSISTANCE DEBTS
Effective March 1, 1996, the recovery of a sum owed is prescribed 5 years after the date on which it becomes payable. Depending on the reason for the claim, a debt is payable on the following date:
- the date on which assistance was unduly paid;
- the date that a right is realized;
- the date that a legal impediment is removed;
- the date on which ineligibility for benefits from another organization ends;
- the data on which compensation from another organization ends.
If there is a MISREPRESENTATION, the debt is prescribed 5 YEARS after the date on which the Income Security became aware of the fact that it was payable, but not later than 15 years after the amount was PAYABLE. The date on which the Income Security became aware that the debt was payable and the evidence establishing the misrepresentation must be entered in the file.
Before March 1, 1996, the period for prescription for income security debts was 3 years. However, for debts that were not yet prescribed on March 1, 1996, the 5-year deadline applies, taking into account the time elapsed so that in these cases an additional 2 years is added to the 3-year period for prescription already under way.
Before establishing a claim for a period of assistance received under the Act respecting Income Security, it is important to determine whether the debt had already been prescribed under the old 3‑year time period.
INTERRUPTION OF THE PRESCRIPTION
The prescription of employment-assistance, income security and social aid debts is INTERRUPTED when the debtor is sent a formal notice as provided for.
It is therefore very important to sent out the formal notice without delay once a debt has been identified to avoid the effects of prescription.
When the prescription period is INTERRUPTED, the period already elapsed is cancelled. Once prescription has been interrupted, the prescription period restarts at zero and runs for the same period as before.
When a prescription period is suspended, as opposed to being interrupted, the calculation of the prescription period is simply halted without cancelling the time already elapsed. Once the reason for suspension has been lifted, the prescription period is reactivated for the remainder of its duration.