Small claims court is the cheap, fast route to a judgment for an unpaid invoice, and for most trade debts it is the right one. You file, you serve, and if the other side does not respond you can win by default. The monetary limit varies a lot by province: Ontario's is now $50,000, Alberta's is $100,000, while Quebec's is only $15,000. Always send a demand letter first. Courts expect you to have tried to resolve the matter, and the letter often gets you paid without filing anything.
Step one: the demand letter
Before you file, send a clear written demand letter (in Quebec, a mise en demeure). It should:
- State the amount owed, with the invoice number and dates
- Set a firm deadline to pay, usually 10 to 14 days
- Reference any interest you are entitled to, whether contractual or statutory
- Say that you will file in court if it is not paid
Beyond the nudge, the letter builds your evidence trail. In Quebec it also has legal bite: interest generally runs from the date of formal notice. Keep proof you sent it.
Step two: the monetary limit by province
File in small claims only if your debt is within the limit. As of 2025 to 2026:
- Ontario: $50,000 (raised from $35,000 on 1 October 2025).
- Alberta: $100,000 (the highest).
- Saskatchewan: $50,000.
- British Columbia: the Civil Resolution Tribunal handles claims up to $5,000; the Provincial Court handles $5,001 to $35,000.
- Nova Scotia: $25,000.
- Newfoundland and Labrador: $25,000.
- Yukon: $25,000.
- Manitoba: $20,000.
- New Brunswick: $20,000.
- Nunavut: $20,000.
- Prince Edward Island: $16,000.
- Quebec: $15,000.
- Northwest Territories: $35,000.
If your debt is over the limit you have two choices: abandon the excess and file in small claims for the cap, or file in the superior or King's Bench court, which costs more and takes longer. A $60,000 invoice in Ontario must go to the Superior Court of Justice; the same amount in Alberta still fits in small claims.
Step three: filing and default judgment
You file your claim, pay the filing fee (typically $100 to a few hundred dollars, tiered by amount and province) and serve the defendant. If the defendant is served and files no reply within the deadline, you apply for default judgment and win without a hearing. Reply deadlines run roughly 14 to 30 days depending on the province.
A default judgment is not the same as getting paid. It is a legal instrument you then enforce: you can garnish wages, garnish a bank account, register a writ against the debtor's land (which blocks a sale or refinance) or have the sheriff seize and sell goods. You generally have 10 years to enforce a judgment.
Plead your interest
In most provinces, if you do not claim interest in your filing you will not get it. State the rate, whether it is your contractual rate (for example 2% per month if your invoice says so) or the statutory rate, and put it in the claim form. In Quebec the agreed rate prevails if specified; otherwise the legal rate applies from the date of formal notice.
Quebec is different
Two things stand out in Quebec. The small-claims limit is the lowest in the country at $15,000. And lawyers are barred from representing parties at the small-claims trial itself (Code of Civil Procedure art 542): you present your own case. Prepare your file accordingly.
Common mistakes
- Filing before sending a demand letter. Courts expect the attempt, and the letter often gets you paid.
- Filing in the wrong court. Check the limit before you start; over-limit claims go to the higher court.
- Forgetting to plead interest. Unclaimed interest is usually lost.
- Thinking judgment equals payment. A judgment is the start of enforcement, not the end of the fight.
- Letting the limitation period lapse first. No court route helps once the claim is statute-barred (see Limitation Periods Explained).
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