Suing Over a Bounced (NSF) Cheque in Ontario Small Claims Court

You did the work, delivered the goods, or lent the money — and got paid with a cheque that bounced. An NSF (non-sufficient funds) cheque is frustrating because it looks like payment right up until the bank returns it, and by then the other side has often stopped answering your calls.

The good news is that Ontario law treats a bounced cheque as strong, straightforward evidence of a debt. Suing over an NSF cheque in Ontario Small Claims Court is one of the more mechanical civil claims to bring, because the cheque itself does much of the work of proving your case. This guide covers what to gather before you file, how the claim plays out, and what happens after you win.

Why an NSF Cheque Is a Strong Claim

A cheque is a written promise to pay a specific amount. When it bounces, you generally have two overlapping legal paths to the same money: a claim on the underlying debt (the invoice, loan, or agreement the cheque was meant to satisfy), and a claim on the cheque itself as a dishonoured promise to pay. Most Small Claims cases plead both together.

The cheque, the bank's NSF notice, and your account records typically line up to make the amount owed hard to dispute — the more common fight is whether the debtor has a separate excuse, such as a dispute over the underlying goods or services.

Before You Sue: What to Gather

Assemble your paper trail before you file anything. You will want:

• [ ] The original cheque (front and back, if you have it, or a clear image/photocopy)
• [ ] The bank's NSF notice or your account statement showing the returned item and any NSF fee charged to you
• [ ] The invoice, contract, or written record showing what the payment was for
• [ ] Any written communication where the debtor acknowledged the debt or the bounced cheque
• [ ] A record of your attempts to collect informally (emails, texts, letters)

Keep records of any NSF fees charged on either side — they may be recoverable as part of your damages.

Step 1 — Send a Demand Letter

Before filing, send a written demand giving the debtor a clear, short window to pay the full amount, including any NSF-related charges you incurred. State plainly that the cheque was returned NSF, the date, and the total now owed. This sometimes resolves the matter without court, and it shows a judge you gave the debtor a fair chance to pay before you sued.

Step 2 — Confirm the Amount and the Right Court

Add up the full amount you are owed: the face value of the cheque, plus any documented NSF fees or bank charges tied directly to the bounced payment. Ontario's Small Claims Court handles monetary claims up to a set ceiling (currently $50,000, exclusive of costs and interest, as of mid-2026 — verify the current limit before filing, since it is set by regulation and can change).

If your claim is within that limit, Small Claims Court is almost always the right venue: it is built for self-represented litigants and licensed paralegals, and uses simplified procedure and relaxed evidence rules. If your claim exceeds the limit, you would generally need to sue in the more involved Superior Court of Justice process instead.

Step 3 — File and Serve the Plaintiff's Claim

In Small Claims Court, you start the case with a Plaintiff's Claim (not a "Statement of Claim" — that term applies to Superior Court actions). Filing requires a fee set by regulation that varies by how frequently you file claims — confirm the current fee first, since it changes periodically.

Once filed, the claim must be served on the debtor as the court's rules require. Keep proof of service; you will need it later to move for default judgment if the debtor never responds.

Step 4 — The Settlement Conference

Ontario's Small Claims Court rules require a settlement conference in every defended claim before it can proceed to trial — a structured, informal meeting aimed at resolving the dispute without a full trial. Come prepared with your documents organized and a realistic sense of what you would accept. Many NSF cheque disputes resolve at this stage, once the debtor sees the paper trail laid out.

Step 5 — Trial and Judgment (If Needed)

If the case does not settle, it proceeds to a shorter, less formal Small Claims trial. If the debtor never files a defence after being properly served, you can instead move for default judgment without a trial. Either way, once you have a judgment, the court will typically address:

Step 6 — Collecting on the Judgment

A judgment is not the same as money in hand. If the debtor still does not pay, Ontario's enforcement tools include a writ of seizure and sale (filed with the sheriff for the county where the debtor has property) and garnishment of wages or bank accounts, sometimes preceded by examining the debtor about their income and assets. Ontario law protects a portion of a debtor's wages from garnishment for ordinary debts — you cannot seize all of it.

Frequently asked questions