- Before involving courts or lawyers, make one clear, written attempt at resolution.
- ) - A firm deadline to pay (typically 10–14 days) - The consequence of non-payment: you will start a court action A lawyer's letterhead often prompts payment when a personal email does not.
- Ontario has two civil courts relevant to debt collection: | Court | Claim Limit (as of writing — verify) | Self-Represented?
Someone owes you money and they are not paying. Maybe it is a former business partner, a client who walked away without settling an invoice, or a person who borrowed cash and disappeared. Knowing how to collect money someone owes you in Ontario — and doing it in the right order — saves time, keeps costs down, and gives you the strongest legal position.
This guide walks you through every stage: informal demand, formal demand letter, choosing the right court, getting a judgment, and actually enforcing it so money reaches your bank account.
Step 1 — Try to Resolve It Informally First
Before involving courts or lawyers, make one clear, written attempt at resolution. A brief email or text stating the amount owed, the due date, and your expectation creates a paper trail and sometimes triggers payment without litigation.
Keep the tone firm but professional. Avoid threats you cannot follow through on. Note the date you sent the message and save any response (or non-response).
If the other side disputes the amount or the debt itself, you will need to decide whether the disagreement is about facts (they say they paid; you say they did not) or about law (they claim they had no obligation to pay). That distinction shapes how you proceed.
Step 2 — Send a Formal Demand Letter
A demand letter is a written notice — usually from a lawyer — that sets out:
- The exact amount claimed and how it was calculated
- The legal basis for the debt (unpaid invoice, loan agreement, court award, etc.)
- A firm deadline to pay (typically 10–14 days)
- The consequence of non-payment: you will start a court action
A lawyer's letterhead often prompts payment when a personal email does not. It also demonstrates to a judge, if the matter proceeds, that you gave the other party a reasonable opportunity to pay before suing.
Step 3 — Choose the Right Court
Ontario has two civil courts relevant to debt collection:
| Court | Claim Limit (as of writing — verify) | Self-Represented? |
|---|---|---|
| Small Claims Court | Up to $35,000 | Designed for it |
| Superior Court of Justice | No upper limit | Common to have counsel |
For amounts at or under the Small Claims limit, that court is almost always the right choice: lower filing fees, faster timelines, and simplified rules. For larger claims, Superior Court is required, but the process is more complex and legal representation is strongly recommended.
Step 4 — Start a Court Action
Filing a claim starts the litigation clock. Once the defendant is properly served, they have a set time to file a defence. If they do not, you can request a default judgment — a judgment in your favour without a trial.
If they do file a defence:
- The court will schedule a settlement conference
- If no settlement is reached, you go to trial
- After trial, the judge issues a judgment stating who owes whom, and how much
Getting a judgment is not the finish line — it is the starting line for enforcement.
Step 5 — Enforce the Judgment
A judgment gives you legal authority to collect. Ontario law provides several enforcement tools:
- Garnishment — seize money from the debtor's bank account or wages
- Writ of Seizure and Sale — register against the debtor's property or assets
- Examination in Aid of Execution — bring the debtor to court to answer questions about their assets under oath
Enforcement is where many creditors stall. The court will not collect on your behalf — you must take active steps. If you do not know where the debtor banks or works, you may need a judgment debtor examination first.
Step 6 — Know When to Reassess
Not every judgment is collectible. A debtor who is genuinely insolvent, who has no assets, no income, and no property, may leave you unable to recover — at least right now. Judgments in Ontario remain in force for a significant period (and can be renewed), so "uncollectible today" does not always mean "uncollectible forever."
If you suspect a debtor has hidden or transferred assets to avoid paying you, Ontario law has tools — including fraudulent conveyance claims — to claw those assets back.
Frequently asked questions
How long does it take to collect a debt through the courts in Ontario?
Small Claims Court typically resolves within 6–18 months from filing to judgment, depending on the region and whether the defendant defends the claim. Enforcement steps after judgment depend on how cooperative — or evasive — the debtor is.
What if the debtor ignores the court process entirely?
If a defendant is properly served and does not respond, you can move for a default judgment, which is typically faster. Enforcing that judgment against an unresponsive debtor may still require garnishment or a writ.
Can I add interest and legal costs to what I recover?
Ontario courts can award pre-judgment interest (calculated from the date the debt arose) and post-judgment interest (from the date of the judgment). Small Claims Court has limits on how much it can award for costs and fees. Superior Court cost awards can be more substantial.
What if the debt is more than $35,000?
You must file in Superior Court of Justice. The process involves pleadings, discovery, and often a more complex trial. A litigation lawyer is strongly recommended for these matters.
This is a litigation question
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