Suing to Collect a Debt in Ontario

When someone owes you money and refuses to pay, Ontario's civil court system gives you tools to collect what you're owed. The process involves obtaining a court judgment and then enforcing it.

Step 1: Demand Payment in Writing

Before going to court, send a formal written demand. State clearly: the amount owed, the basis for the debt, and a deadline. A lawyer's demand letter carries more weight and often produces results without litigation.

Step 2: File a Claim

For amounts up to $35,000, Small Claims Court is faster and less expensive. For larger amounts, file in the Superior Court of Justice. You'll need to prove: there was an agreement (written or verbal), you performed your obligations, the defendant owes you a specific amount, and they haven't paid.

Step 3: Obtain a Judgment

If the defendant doesn't respond or you succeed at trial, the court issues a judgment in your favour. A judgment is a court order confirming the defendant owes you money — but it doesn't automatically put money in your pocket.

Step 4: Enforce the Judgment

This is where many creditors get stuck. Ontario offers several enforcement tools:

• Garnishment of wages: Up to 20% of the debtor's net wages can be deducted each pay period and paid to you
• Garnishment of bank accounts: Funds in the debtor's bank account can be frozen and redirected to you
• Writ of Seizure and Sale (personal property): A bailiff can seize and sell the debtor's personal property
• Writ of Seizure and Sale (land): File with the land registry — prevents the debtor from selling their property without paying your judgment first
• Examination of debtor: Summon the debtor to court to answer questions about their assets under oath

Practical Considerations

Before pursuing litigation, consider whether the debtor has assets to satisfy a judgment. A judgment against someone with no assets or income is difficult to collect. A lawyer can help you assess the debtor's financial situation and choose the most effective enforcement strategy.