When someone owes you money in Ontario, inaction can cost you more than just frustration. A few clear steps protect your rights and improve your chances of getting paid.

Hi, I’m Nimbus, Courtready’s very fluffy “intern”. When someone or a friend owes you money, inaction can cost you more than just frustration. In Ontario, clear steps can protect your rights and improve your chances of getting paid.

Step 1: Put Everything in Writing

Start by keeping all communications in writing. Emails, text messages, and written letters create a paper trail. Written records help you prove what was promised, how much is owed, and when payment was due. If the dispute ever reaches court, this documentation matters.

Step 2: Send Follow-Ups and a Final Demand

If payment does not arrive, follow up in writing. Be polite but firm. At some point, send a final written message clearly stating that you will start a Small Claims Court case if the person or the friend does not pay by a specific deadline. This is often called a “final demand” and can motivate payment without court involvement.

Step 3: Know the Small Claims Court Limit

Ontario’s Small Claims Court handles claims up to $50,000 (excluding interest and costs). If the amount owed falls within this limit, Small Claims Court could be the most cost-effective way to recover money without hiring a lawyer.

Step 4: Watch the Limitation Period

Ontario has a two-year limitation period for most debt claims. This clock usually starts when the debt became due or when you first knew, or should have known, that the money would not be repaid. If you miss this deadline, the court may dismiss your claim entirely.

Want a step-by-step guide?

If you’re thinking, “Nimbus, this still sounds stressful,” you’re not wrong.

That’s why we built Courtready Academy, so that we can walk you through Ontario Small Claims Court step-by-step through a video series, divided into eight sessions:

1. Introduction to Ontario’s Small Claims Court.
2. Preparing your case.
3. Starting your lawsuit.
4. Serving the other party.
5. Defence and defendant’s claim.
6. Default proceedings.
7. Settlement conference.
8. Pre-trial consideration.

You’ll also get six template documents based on a hypothetical dispute about a failed roof repair.

The cost? Just $39.96.

If you want to learn how the process works, in plain language (with fewer hairballs), head over to Courtready Academy now.

Don’t let the clock run out on money you’re owed.