en
Debt Collection Canada:
recovery of claims
Are you doing business abroad and have a Canadian client who won’t pay your invoice? Or do you have other unpaid claims in Canada? Going after your money yourself costs a tremendous amount of time and effort and often proves to be in vain.
Hand over your claim to a Collection Company, and we will ensure that you get your money as soon as possible. As specialists in international debt collection, we have a global network with local debt collection specialists. These lawyers, attorneys, and bailiffs know exactly what to do to collect your claim.
- Nationwide coverage in Canada
- One dedicated English speaking contact
- Proven track record
- Tailor-made services for each case
- Expert advice and a transparent process
- 24/7 online access
Specializing in Canadian debt collections
Collecting debts from a domestic customer can already cause a lot of frustration, but a defaulter abroad is even more annoying. You’re dealing with a huge distance and sometimes a significant time difference.
Moreover, you probably don’t know about the local laws and regulations and are therefore not exactly aware of your rights and obligations as a creditor. What should you do to get your money? Which institutions can you turn to? Which collection agencies and bailiffs can you trust?
As an international debt collection agency Collection Company takes these worries off your hands. As a creditor, you get one dedicated point of contact. This international collection specialist handles the collection of your claim and stays in touch with the experts from our network in Canada.
This way, we manage both extrajudicial and judicial collection in Canada and can collect your money in a fast and efficient manner. As a client, you get access to our Online Cockpit, where you can monitor the progress of the collection 24/7.
Why use a Collection Company for debt recovery in Canada?
- Global coverage
- One dedicated English speaking contact
- Experienced debt collection specialists with knowledge of Canadian legislation
- Broad network with local lawyers and bailiffs
- Seamless connection from extrajudicial to judicial action
- Effective local approach
- 24/7 tracking through your own Online Cockpit
Submit your claim
Do you have unpaid bills in Canada? Contact us immediately by filling in your details. One of our debt collection professionals will contact you as soon as possible.
How does debt collection work in Canada?
A successful debt recovery procedure in Canada typically starts with an extrajudicial phase. This part involves us as a collection agency notifying your debtor of the outstanding debt. We do this by sending payment reminders and demands. In most cases, this is sufficient to move your debtor to pay the outstanding debt.
If it turns out that amicable debt collection (collecting your debt without involving the court) is not possible, then we can engage our lawyers and legal experts in Canada to start legal proceedings against your debtor.
- Upload your invoice online
- We'll start your case
- We'll start with the debt collection process
- Together we decide the best strategy for collecting your debts
- Monitor the status of your case 24/7
- Any questions? Your personal accountmanager will answer them all!
- Your invoice is payed
Extrajudicial debt collection
Have you sent an invoice to a client in Canada and it’s not being paid? Or do you have other unpaid debts in Canada? During an amicable collection process, we send your debtor reminders in which we kindly yet urgently request payment of the outstanding account on your behalf. We will also contact your debtor by phone and via SMS or email.
In total, there are 16 points of contact with your debtor over a three-week period (if necessary). We gradually increase the pressure. Eventually, we let your debtor know that we will take legal action if the account is not paid within the set term. We immediately mention that this will incur costs for your debtor. Because these costs can escalate, most debtors choose to pay the outstanding debt.
Initiating legal proceedings
Most debtors are wise enough to pay up when they find a collection notice from Collection Company in their mail. But what if they don’t?
Then, in consultation with you as the creditor and with the help of our network of lawyers and attorneys in Canada, we take legal action.
How a legal procedure looks in Canada depends on the province or territory where your debtor is located. The various provinces and territories have their own courts (three different levels). Only Nunavut has just one court. In most provinces and territories, the procedure works in a similar way.
Small claims
In most Canadian provinces and territories, there is a special simplified judicial procedure for small claims. The limit for filing a small claim in a Small Claims Court varies by province.
Limit per province or territory for a small claims process:
- Alberta: CAD 50.000
- British Columbia: CAD 35.000
- Northwest Territories: CAD 35.000
- Ontario: CAD 30.000
- Newfoundland and Labrador: CAD 25.000
- Nova Scotia: CAD 25.000
- Yukon: CAD 25.000
- Nunavut: CAD 20.000
- Saskatchewan: CAD 20.000
- Quebec: CAD 15.000
- New Brunswick: CAD 12.500
- Manitoba: CAD 10.000
- Prince Edward Island CAD 8.000
If you have a claim that is (slightly) higher than the mentioned limit, but you still want to file the case in a Small Claims Court, you can often choose to waive the amount that exceeds the limit.
When we file a claim at the Small Claims Court, your debtor will be notified. Subsequently, your debtor may choose to acknowledge and pay the claim. In that case, the procedure is automatically stopped.
If your debtor disputes the claim, they can submit a defense. In that case, both parties are invited to appear before the judge. The judge will mediate and try to bring both parties to an agreement. If that fails, a court case follows. The judge will examine the evidence and make a ruling.
Civil procedure
For claims exceeding the limits mentioned above, a normal civil procedure follows. This takes place in a higher court than the procedure for small claims. The legal process looks roughly the same: your debtor is summoned and can choose to pay the debt or dispute the claim.
If your debtor disagrees with the claim, they can submit a defense in court. The judge will examine the evidence submitted and hear the arguments of both parties. Then, the judge will make a ruling.
Arbitration
An alternative to a lawsuit is arbitration. This is a form of private justice where the dispute is not submitted to a judge, but to an arbitration committee appointed by the parties themselves.
To resolve a business dispute through arbitration, both parties must agree to this. Often, this agreement is established in advance, for example, in the purchase conditions or general terms and conditions. However, it is also possible (if both parties agree) to opt for arbitration after the conflict has arisen.
During an arbitration procedure, the dispute is presented to a single arbitrator or an arbitration committee consisting of multiple arbitrators. They then make a ruling. An arbitral ruling holds the same value as a court judgment. For instance, an arbitral judgment can be used to levy an attachment. Once arbitration has been chosen, it is not possible to take the matter to court.
The advantage of arbitration is that it is generally faster than a normal lawsuit. There is usually no possibility to appeal against the decision, and the procedure can be carried out in privacy.
Enforcement procedures
Getting a favorable ruling from the judge is one thing, actually collecting your money is another. What if your debtor refuses to pay even after a court judgment?
In some provinces and territories in Canada, it’s possible to immediately enforce the court ruling by seizing your debtor’s assets (once your debtor has no further opportunity to appeal) with the court judgment. In other provinces, an enforcement order must first be requested from the court.
The enforcement is carried out by sheriffs. These government officials are responsible for executing court judgments and are authorized to seize income and bank accounts. They can also take possession of goods and sell them publicly. The proceeds from this sale are used to pay the creditor.
Interim remedies in Canada
Of course, you wouldn’t want your debtor to funnel away money or possessions leading up to a (final) court decision, leaving nothing for you to recover. Therefore, various precautionary measures can be taken. For instance, we can ask the court to freeze bank accounts or take possession of your debtor’s belongings while the case is under review.
Such an interim attachment serves immediately as a strong pressure tool on your debtor. After all, as long as the lawsuit is ongoing, your non-paying debtor can no longer access the money or possessions. Consequently, many debtors opt to pay as soon as a precautionary attachment is made.
Bankruptcy procedures in Canada
One of the strongest measures of pressure on your debtor is a bankruptcy petition. The Canadian Bankruptcy and Insolvency Act stipulates that a creditor can file for the bankruptcy of their debtor if they fail to meet their payment obligations.
If your debtor is declared bankrupt, they lose control over their possessions. All assets are used to pay off outstanding debts. Your debtor, therefore, risks losing everything they own if declared bankrupt. Most debtors will do everything in their power to avoid this.
In practice, most defaulters will choose to pay once their bankruptcy is petitioned (once we receive the money, we can withdraw the bankruptcy application).
If your debtor still does not pay after a bankruptcy, they will ultimately be declared bankrupt by the court. In that case, all their (business) assets are transferred to a trustee (Licensed Insolvency Trustee), who will sell these goods to pay off all creditors.
More information?
Would you like to learn more about filing for bankruptcy of your debtor in Canada? Enter your details and one of our expert debt collectors will contact you.
Collecting depts in different legal fields
As a creditor, you can have a claim in various legal fields. You may have sent invoices that are not paid yet, but it is also possible that you are owed money from a damage claim or unpaid salary.
Collection Company can assist you in collecting all these types of debts. We specialize in collections within the following areas of law:
- Construction Law
- Leasing and Renting
- Buying and Selling
- Employment Law
- Agency Agreement
- Transportation
- Damages and Tort
Collection Company not only handles collections for individuals but also for intermediaries such as law firms and accounting firms.
How else can we assist you?
- Advice on contracts and terms
- Credit information about Canadian companies
- Mediation in disputes including Retention of title and right of complaint
- Facilitating private agreements and settlements
Submit your debt collection case
You can submit your claim directly via our debt collection registration form. Prefer to discuss your claim with a debt collector first? Leave your details or call us at +3170 – 762 0330.
Free advice on debt collection in Canada?
Submit your personal information and plan your free consult.
FAQ: Frequently Asked Questions about Debt Collection in Canada
FAQ: What do we need to collect a debt in Canada?
For a successful debt collection, it’s important to build a meticulous case file. Therefore, we would like to receive the paperwork related to the claim. This can include the signed contract, sent invoices, and emails discussing the deal.
We know from experience that no file is ever directly complete. Are you missing certain documents? No problem. Together with our debt collection specialists, you can discuss which documents you do have to support your claim.
If available, we would like to receive the following documents:
- A copy of the agreements made such as a purchase agreement, but also email correspondence with your debtor, a fax confirmation, or a summary of what has been agreed upon
- Sent invoices
- Sent reminders
- Your general terms and conditions applicable to the agreement
- Proof of delivery
FAQ: Is there a statute of limitations?
For most types of claims, there is a limitation period. This varies from province to province. In most provinces (or territories), claims must be filed in court within two years after the final payment term has expired.
FAQ: Are debts forgiven after 7 years in Canada?
A common misconception is that debts disappear or are forgiven after 7 years. This is because debts are only listed for 7 years on a credit report by the Canadian credit bureau. However, this does not mean that these debts are forgiven after 7 years.
FAQ: Can I agree to a retention of title in Canada?
A retention of title is not common in Canada. Usually ownership of goods transfers to the new owner at the moment of delivery. To agree on a retention of title, it must be explicitly recorded (both parties must agree), and the retention of title must be registered with the Provincial Property Security. In practice, this is mainly to determine which creditors have priority in the event of bankruptcy.
FAQ: Is a lawyer required during a judicial collection process?
Whether a lawyer is required depends on the province where the claim is filed and the amount of the claim. For most small claims, a lawyer is not required. In civil proceedings for higher claims, the assistance of a lawyer may sometimes be necessary.
Even if it is not mandatory to hire a lawyer, it can sometimes be wise to seek assistance from local legal experts or lawyers. Therefore, we collaborate with a valuable network of local legal experts.
FAQ: Why choose a Collection Company for your Canadian claims?
As a commercial debt collection agency Collection Company can conduct the debt collection process for you, from the amicable phase to the judicial procedure. We also have access to an extensive network of lawyers and attorneys. This means you don’t have to look for local specialists for each step of the collection process yourself. Throughout the procedure, you will have one dedicated contact person. This debt collector coordinates the entire process, so you won’t be affected by any time difference.
Why 40.000 customers tried our services
- The #1 collection company in the Netherlands and abroad
- Regional & local specialists
- Years of experience with international invoices
- Your own personal contact
- Extensive advice on the legal process
- Monitor the status of your case 24/7
Meet our specialized legal team
Joost Konings LLMLaw expert- May Leung LLMLaw expert
- Wesley Boeters LLMInterim lawyer
