Debts above the Small Claims Court monetary limit ($50,000 as of October 1, 2025) must be pursued in the Ontario Superior Court of Justice. The process typically starts with a demand letter, followed by a Statement of Claim if unpaid, and — if the debtor does not respond — a motion for default judgment. Once judgment is obtained, enforcement tools include writs of seizure and sale, garnishment, and examinations of the debtor.
- Claims for more than $50,000 cannot be brought in Small Claims Court and must proceed in the Superior Court of Justice.
- A properly documented demand letter often prompts payment or a negotiated settlement without ever filing a claim.
- If the debtor does not respond to a filed claim, you can seek default judgment without a full trial.
- A judgment is only useful if it can be enforced — writs of seizure and sale, garnishment, and debtor examinations are the main tools available.
- Superior Court litigation costs more than Small Claims Court, so a realistic assessment of the debtor's ability to actually pay matters before committing to litigate.
- Ontario's two-year limitation period applies to most debt claims, running from the date of default or the last acknowledgment of the debt.
When You Need Superior Court
Ontario's Small Claims Court is fast and inexpensive, but it has a hard ceiling: effective October 1, 2025, under Ontario Regulation 42/25, claims are capped at $50,000. If you are owed more than that, you must pursue the debt through the Ontario Superior Court of Justice, which follows the same general civil litigation framework used for other significant claims. See our full Small Claims vs. Superior Court comparison if you are unsure which court your claim belongs in.
Start With a Demand Letter
Before filing anything, a formal demand letter from a lawyer sets out what is owed, the basis for the debt, and a deadline to pay — and a meaningful share of debts are resolved at exactly this stage, without ever needing to file a claim. It also creates a clear record that supports the litigation that follows if payment does not come.
Filing a Statement of Claim
If the demand letter does not resolve the debt, the next step is filing a Statement of Claim in the Superior Court, setting out the amount owed and the basis for the claim — an unpaid invoice, a loan agreement, a personal guarantee, or another contractual obligation. The debtor then has a set number of days to respond with a Statement of Defence.
If the Debtor Doesn't Respond
Debtors sometimes simply ignore a claim. If no defence is filed within the required time, you can move for default judgment — obtaining judgment without the cost and delay of a full trial. See our related guide, What Happens If You Ignore a Lawsuit in Ontario, for how this process works from the debtor's side.
Many debt collection matters end in default judgment because the debtor has no real defence and simply does not respond — this is frequently the quickest and least expensive route to a judgment you can then enforce.
If the Debt Is Disputed
Where a debtor files a defence — disputing the amount, alleging a set-off, or claiming the debt was never properly owed — the matter proceeds through the standard Superior Court process, including mandatory mediation in most Toronto actions. We assess early whether the dispute is genuine or simply a delay tactic, which shapes how aggressively we pursue the claim.
Enforcing the Judgment
A judgment is only as useful as your ability to actually collect on it. Ontario provides several enforcement tools once judgment is obtained:
- Writ of seizure and sale — against the debtor's real property or personal property
- Notice of garnishment — against wages owed by an employer or funds held by a bank
- Examination in aid of execution — compelling the debtor to disclose assets and income under oath
Our full guide to enforcing a judgment in Ontario Superior Court covers every one of these tools in detail.
A Toronto supplier is owed $85,000 by a customer who stopped paying invoices. A demand letter goes unanswered, so a Statement of Claim is filed. The customer never responds, and default judgment is obtained within weeks — followed by a garnishment against the customer's bank account once the judgment is registered.
Your Limitation Period
Debt claims are generally subject to Ontario's standard two-year limitation period, running from the date of default or the debtor's last partial payment or written acknowledgment of the debt. See our full guide to limitation periods for civil claims for the details and exceptions.
Call our Toronto debt collection lawyers at 416-274-2222 to discuss recovering money owed to you.
Frequently Asked Questions
Effective October 1, 2025, under Ontario Regulation 42/25, the Small Claims Court limit is $50,000. Debts above that amount must be pursued in the Superior Court of Justice, which follows a more formal — and more expensive — process.
It depends on the amount owed, the strength of your evidence, and — critically — whether the debtor actually has assets or income to collect from. We assess collectability realistically before recommending litigation, since a judgment against a debtor with no recoverable assets provides little practical value.
If the debtor does not file a defence within the required time, you can move for default judgment without a full trial — often a faster path to judgment than a contested claim.
Common enforcement tools include a writ of seizure and sale (against real property or personal property), a notice of garnishment (against wages or bank accounts), and an examination in aid of execution, which compels the debtor to disclose their assets and income under oath. See our full guide to enforcing a judgment in Ontario Superior Court.
Generally two years from the date of default, or from the debtor's last partial payment or written acknowledgment of the debt, whichever is later. Waiting too long can permanently bar the claim, so early advice matters even while you attempt to negotiate directly.
It depends on whether the company still legally exists and whether it has any remaining assets. If the company has been dissolved or is judgment-proof, pursuing individual guarantors or directors (where personal liability exists) may be a more realistic path to recovery.
A lawyer's demand letter typically carries more weight than a personal request, and often resolves debts without ever needing to file a claim. If informal attempts have already failed, involving a lawyer sooner — before evidence goes stale — generally improves your outcome.