Ontario Debt Litigation

Sued for a debt.
Or owed one.
We handle both.

Whether you've been served a Statement of Claim or you're trying to collect what you're owed, you need a litigator who knows Ontario debt law — not a collection agency. We act for creditors and defendants across Ontario.

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Creditor and debtor representation
Small Claims to Superior Court
Serving Ontario-wide
Response within 24 hours
Your Situation

Two sides. One firm.

Debt disputes in Ontario are time-sensitive on both sides. Whether you're defending a claim or enforcing one, the window to act is limited.

Defendant

You've Been Sued

A Statement of Claim has landed on your doorstep. You have 20 days to respond in Superior Court, or 20 days in Small Claims. Ignoring it means a default judgment — garnished wages, frozen accounts.

  • Sued by a bank, credit card company, or collection agency
  • Statement of Claim served for an old debt
  • Possible limitation period defence — debt may be time-barred
  • Creditor cannot prove proper standing or assignment
  • Debt amount is disputed or inflated
  • Collection agency violating the CDSСА
Creditor

You're Owed Money

A client, tenant, borrower, or business partner won't pay. You need a lawyer — not a collection agency — because lawyers can litigate and enforce where agencies cannot.

  • Unpaid invoices or business loans
  • Judgment enforcement — garnishment, liens, writs
  • Examination in aid of execution
  • Commercial debt recovery across Ontario
  • Guarantor enforcement
  • Loan default — secured and unsecured
If You've Been Sued

Common defences in Ontario debt claims.

Many debt lawsuits in Ontario are vulnerable to legal challenge. You may have more options than you think.

01

Limitation Period Expired

Ontario's two-year limitation period means that if the creditor waited too long to sue, the claim may be dismissed entirely — but only if you raise it as a defence. Ignoring the lawsuit loses this protection.

02

Lack of Standing

Collection agencies that purchased the debt must prove the chain of assignment from the original creditor. Gaps in documentation can defeat the claim entirely.

03

Amount in Dispute

Interest calculations, penalty fees, or unauthorized charges may have inflated the claimed balance beyond what is legally recoverable. We scrutinize every number.

04

Identity / Wrong Defendant

Debt buyers operating on incomplete records sometimes sue the wrong person entirely. If you don't recognize the debt, it must be verified before any payment is made.

05

CDSSA Violations

Ontario's Collection and Debt Settlement Services Act restricts how and when collectors can contact you. Violations may give rise to a counterclaim and affect the proceedings.

06

Settlement / Accord

If you reached a verbal or written settlement with the original creditor or a prior collector, that agreement may bar the current plaintiff from pursuing the full balance.

⚠️

The 2-Year Rule — Critical Warning

Ontario's limitation period for debt claims is two years from discovery. If a collector sues you after this window, you can have the claim dismissed — but only if you respond to the lawsuit. A default judgment entered against you is enforceable even on a time-barred debt. Never ignore a Statement of Claim.

If You've Been Served

What happens next — and when.

The clock starts the moment the Statement of Claim is served. Here is what you're facing.

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Day 0

Statement of Claim Served

You're officially a defendant. The clock starts. Do not ignore this document.

Day 20 (Superior Court) / Day 20 (Small Claims)

Defence Deadline

You must file a Notice of Intent to Defend or a Defence. Miss this and the plaintiff can note you in default immediately.

Shortly After

Default Judgment Risk

If you fail to defend, a default judgment can be obtained with no further notice. This enables garnishment of wages and bank accounts.

Litigation Phase

Discovery & Motions

If you defend, the matter proceeds to examinations, document production, and potentially a hearing or trial. Most matters settle before this stage.

Resolution

Settlement, Dismissal, or Judgment

With proper legal representation, many debt claims are resolved favourably — through negotiated settlements, dismissal on limitation grounds, or successful defences at trial.

Common Questions

What our clients ask most.

What happens if I ignore the lawsuit?
A default judgment will be entered against you — typically without any further notice. That judgment gives the creditor the power to garnish your wages, freeze your bank account, and register a writ against your property. Even time-barred debts result in default judgments if you don't respond.
The debt is from years ago — is it too late to sue me?
Ontario's limitation period is two years. If the creditor is suing after that window has passed, the limitation period is a complete defence — but you must raise it in your Defence. Making a payment or acknowledging the debt in writing resets the clock.
Can a collection agency actually sue me?
Yes. A collection agency that has purchased or been assigned the debt can sue in its own name. However, it must prove the full chain of assignment and comply with Ontario's licensing requirements. These requirements are frequently not met, creating a viable defence.
I have a judgment — how do I actually collect the money?
Winning a judgment is step one. Enforcement requires separate steps: registering writs against property, garnishing wages or bank accounts, conducting an examination in aid of execution to identify assets, or seizing and selling personal property through a sheriff. We handle the full enforcement process.
What's the difference between Small Claims and Superior Court?
In Ontario, Small Claims Court handles claims up to $35,000. Superior Court handles larger claims and has different procedural rules. Both courts can enforce judgments with equivalent effect. Most consumer debt claims originate in Small Claims. Commercial and larger debts proceed in Superior Court.
Can I recover legal costs if I win?
In Superior Court, the winning party is often entitled to partial indemnity costs — typically 40–60% of actual legal fees. In Small Claims, cost recovery is limited. The availability of cost recovery is one reason it often makes economic sense to litigate properly rather than ignore or settle prematurely.

Your next move matters.

Whether you're defending a claim or enforcing one, the right lawyer makes the difference. Start with a free, confidential consultation.

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