My friend has a default judgement on his credit file from 2006 in Ontario.
He wish to know that:
1- For how long default judgement will stay on file/ credit report.
2- If he start working his GST/PST refunds will be forfitted by the creditir bank in persuance of the Income tax law sub section164 (2) which alowa the creditors the right to set off any loan or this law is only applicable in student loand owned by the federal or provincial governments.
Plz give some comments on this. Thanks.

He should contact both Equifax and Transunion and arrange for a free copy of his report.

It is a possibility that while he was out of country a default judgement was awarded....the reports will show that.
If there was a judgement it can be renewed every 10 years.
If not a collection agency in Ontario has no time limit as to how long they can try to collect a debt.

Sir Thank you for your detailed reply, all he remember is that he made regular installements of his loan till 2006 and then he moved out of the country he did not signed or acknowledged any debt in writing after 2006. Now he wants to move back to Canada but scared of credit agencies or courts.

So now the questions is that he will have problems in getting job and opening bank account (in some other bank than he own money).
And kindly also mention usually for how many years credit agencies chase loan defaulters.
How can he check that if this loan has fallen off his records.

If the loan and card were infact unsecured and he has not made any payments in over 2 years and he has not acknowledged the debt in writing and signed it then the Statute of Limitation has run out and he is no longer legally responsible for it.
Morally....that is a different matter, but he can no longer be sued for it.
It will fall off his credit report 6 years from his last activity on the accounts.

The debt still exists and collections can chase him forever...and if he has any money in the bank that gave him the LC they can seize it using Right To Setoff laws. This applies to any branch of that bank.

Thanks for your responce. My friend told me that it was his credit card and line of credit loan and the loan was not secured (he thinks). Also please advice that for how many years credit bearu maintains these types of default cases (7 or 9 years) does these type of cases vanish from their records after 7 or 9 years.

Was this loan secured with any collateral?

My friend has an outstanding loan for approx. CAN$5,000 which he is not able to pay off since 2006 and he is running from collection agencies can some one help him and suggest his best options. Thanks