10/31/2023 0 Comments Help collecting unpaid invoices![]() If the debtor does not have the means to pay the debt, you may be spending more money to chase an unattainable result. ![]() ![]() This may be the most important point to consider when deciding to commence legal action. Does the debtor have the means to pay the money owing to you? If you do not have this information readily available, we may be able to complete a search to assist you in finding this information. Having this information will also help to determine where legal action should be started. There are various rules of service, but we recommended to start with a residential address if you are suing an individual, or a registered office address if you are suing a business. If you have decided to commence legal action, you must have the means to serve the party you are suing. Do you know where the debtor lives or carries on business? If your agreement is not written, do you have anything that shows the intent of both parties? Text messages, e-mails, invoices, proof of services completed, or proof of money paid or transferred are examples of the types of support we may look for to show intent when there is an unwritten or verbal agreement. Default ramifications (for example, is Arbitration an initial requirement?).Penalties or consequences of non-payment. ![]() Whether you have lent someone money or provided services for a fee you are not required to have the terms of your agreement in writing, but it helps! Typically, we look for the following information in written agreements: If you are unsure of what your limitation date may be, our team may be able to assist you in determining the date. Beware! If you miss your limitation date you may forfeit your right to start legal action or it may be detrimental to your case. Your time limit to pursue legal action for an unpaid debt may start when you knew, or ought to have known, that the debt was not going to be paid. Typically, you have two years to pursue a debt in Ontario, Alberta and British Columbia, and therefore it is imperative that you act fairly quickly on any outstanding debts. When did you realize that you may not be paid for your outstanding invoice/account? Is the debt you want to pursue less than $2,500.00? Don’t worry! We have alternative solutions to help you, outlined here. Our team of experienced paralegals can help you identify what costs are recoverable in what circumstances.įor the reasons outlined above, we often suggest that it may not be cost-effective to pursue legal action for debts under $2,500.00. This means that a portion of your legal fees will be paid out-of-pocket and will be non-recoverable. You should be mindful that you cannot include your legal fees in the amount you sue for, and there are limited circumstances in which you can recover a portion of your legal fees. The more complex your file is, the more money it will cost you to pursue legal action. The cost of litigation is directly correlated to the course of the file as a whole but based on our experience we find clients may spend upwards of $2,000.00 in legal fees for what they may consider to be a “straightforward” matter. In British Columbia, the filing fee is $156.00 and in Alberta the filing fee ranges from $100.00 to $200.00 depending on your claimed amount. The cost to file a claim in Small Claims Court in Ontario is $102.00. We understand that every dollar matters to you but sometimes it is simply not cost effective to pursue legal action. The next thing to consider is a cost-benefit analysis of amounts owing. After you have answered all questions outlined here, you may wish to contact us to discuss which avenue of pursuit is best for your particular situation. The same rules regarding waiving excess funds may apply. The British Columbia Small Claims Court has a monetary limit of $35,000.00 and Alberta Small Claims Court has a monetary limit of $50,000.00. If you choose to proceed with the latter, you waive your right to collect any of that excess money. You may pursue a debt in excess of $35,000.00 in Superior Court, or in Small Claims Court by waiving any excess amounts above the $35,000.00 limit. The first thing to note is that the Ontario Small Claims Court has a monetary limit of $35,000.00. Whether you have an overdue account amounting to $500.00 or $50,000.00, money owed means something to everyone.
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