A client who stops answering your emails is not the end of the road. Most unpaid invoices are recovered with a firm letter, and the rest can go to small claims court without a lawyer. The order matters, and so does the deadline.
Step by Step
1Collect your paper trail. Gather the invoice, the quote or contract, the emails where the client approved the work, and proof of delivery. Courts decide these cases on documents.
2Send a demand letter. State the amount, the invoice numbers and dates, and a clear deadline, usually 10 days. Say what you will do if it isn't paid. Almost every small claims court expects you to have asked in writing first, and you'll attach this letter to your claim.
3Add interest the right way. You can charge interest only if your terms said so. Under the federal Interest Act, a monthly rate with no yearly equivalent is capped at 5% a year. Write it as "1.5% per month (18% per year)".
4Check the deadline. The 2-year clock usually starts when payment was due and you knew it wasn't coming. In Ontario, a signed written acknowledgment of the debt, or a partial payment, restarts the clock if it comes before the deadline.
5File in small claims court. No lawyer is needed. In Ontario, the defendant has 20 days to file a defence after being served. If they don't, you can ask for a default judgment.
Small Claims Limits and Fees
| Province | Limit |
|---|---|
| Alberta | $100,000 |
| Ontario | $50,000 |
| Saskatchewan | $50,000 |
| British Columbia | $5,000 (CRT) / $35,000 |
| Manitoba | $20,000 |
| Quebec | $15,000 |
In Ontario, filing a Plaintiff's Claim costs $108, or $228 if you file 10 or more claims a year at the same court. In Quebec, a business can use the Small Claims Division only if it had no more than 10 employees in the past 12 months. Our small claims guide covers every province and territory.
Write a demand letter that states the amount, the invoices and a firm deadline.
Draft It With Asya →Frequently Asked
How long do I have to sue over an unpaid invoice in Canada?
In Ontario, BC, Alberta, Saskatchewan and Manitoba, the basic limitation period is 2 years from when you knew, or should have known, about the claim. In Quebec it is 3 years. In Ontario, a written and signed acknowledgment of the debt, or a partial payment, restarts the 2-year clock if it happens before the deadline.
Can I charge interest on an overdue invoice?
Yes, if your terms say so. But under section 4 of the federal Interest Act, if you state interest as a monthly or daily rate without also stating the yearly equivalent, you can only recover 5% a year. Write it as, for example, "1.5% per month (18% per year)".
How much does it cost to file a small claim for an unpaid invoice in Ontario?
Filing a Plaintiff's Claim costs $108 if you file fewer than 10 claims a year at that court, and $228 if you are a frequent claimant. Ontario's Small Claims Court handles claims up to $50,000, not counting interest and costs.
Can a business use small claims court in Quebec?
Only smaller ones. In Quebec, a company can sue in the Small Claims Division only if it had no more than 10 employees in the 12 months before filing. The limit is $15,000, and lawyers cannot represent you at the hearing.
Sources & Verification
Figures and rules in this article come from official sources:
- Ontario — Limitations Act, 2002
- Government of Canada — Interest Act, section 4
- Ontario — Small Claims Court fees (O. Reg. 432/93)
- Ontario — Construction Act (prompt payment)
- practicePRO — Ontario Small Claims Court limit increased to $50,000 (Oct. 2025)
This article is general information, not legal advice. Learn more about how ComplaintCA verifies information on our About page.