Collect an unpaid invoice in Ontario Small Claims Court
Owed money by a client, customer or contractor? Here is how to move from a demand letter to a judgment, and how to collect it.
Who this is for
- Contractors, tradespeople and freelancers owed for work done
- Small businesses owed by customers
- People owed an unpaid loan or a deposit
- Anyone owed up to $35,000, not counting interest and costs
From demand letter to payment
- Demand letter. A clear written demand with the amount, the basis for it and a deadline to pay.
- Plaintiff’s Claim (Form 7A). Filed with the court, then served on the defendant. Proof of service is filed with an Affidavit of Service (Form 8A).
- If there is no defence. You can ask for the defendant to be noted in default and for a default judgment (Form 11B).
- If it is defended. A settlement conference, then trial if there is no settlement. A formal Offer to Settle (Form 14A) can affect costs.
- Enforcement. Garnishment (Form 20E), examination of the debtor (Form 20H), and a Writ of Seizure and Sale (Forms 20C and 20D).
Is it worth suing?
Three practical questions come first: Can it be proven? Can the other side pay? Is the cost of pursuing it reasonable compared with what could be recovered? Those numbers are reviewed together before any commitment.
Ways to get help
Full representation covers the claim from start to finish. Limited scope services cover specific tasks, such as drafting the demand letter, preparing your Plaintiff’s Claim, or coaching you for the settlement conference.
Frequently asked questions
What is the maximum I can claim in Small Claims Court?
Ontario Small Claims Court hears claims up to $35,000, not counting interest and costs. Larger claims must go to Superior Court or be reduced to fit.
How long do I have to sue for an unpaid invoice?
Generally two years from when you discovered the claim, with some exceptions. Start before the deadline gets close.
Do I need to send a demand letter first?
It is not always required, but it is strongly recommended. A clear written demand can resolve things without court, and it shows the court you gave the other side a fair chance.
What if they still do not pay after I win?
A judgment is not the same as being paid. Enforcement options include garnishing wages or bank accounts (Notice of Garnishment, Form 20E), examining the debtor about their finances (Notice of Examination, Form 20H), and filing a Writ of Seizure and Sale against personal property (Form 20C) or land (Form 20D).
Can I recover my legal fees from the other side?
The court may award some costs to a successful party, but the amount recoverable in Small Claims Court is limited. That is considered before you commit, so you know whether the numbers make sense.
Owed money? Start with the documents.
Send the invoice, contract or messages and the amount owed. Your options and deadline are confirmed first.