How to Sue for Unpaid Invoices in Ontario Small Claims Court (2025 Guide)

Unpaid invoices are one of the most common reasons people and businesses file claims in Ontario Small Claims Court. Whether the issue involves freelance work, services rendered, goods delivered, or a written agreement that was ignored, the Courts of Justice Act allows claims up to $35,000.

This article explains how to sue for unpaid invoices in 2025, what evidence you need, which forms to file, and the steps involved from filing to trial.

When You Can Sue for an Unpaid Invoice

You may bring a Small Claims Court action when:

• a client fails to pay for goods or services
• a written contract has been breached
• a verbal agreement was not honoured
• partial payment was made but the balance is still outstanding
• payment deadlines have passed

Claims must be brought within the applicable limitation period, which is generally 2 years from the date payment was due.

Step 1: Gather Evidence Before Filing

Strong evidence increases the chances of a successful outcome.

Essential documents include:

• the unpaid invoice(s)
• written or email agreements
• text message confirmations
• proof of work performed or goods delivered
• delivery receipts, photos, or timestamps
• communications requesting payment
• reminders or follow-up notices
• bank statements showing no payment received

Organize your documents by date to clearly show the timeline.

Step 2: Send a Final Demand for Payment

Before filing a lawsuit, send a final written demand. This letter should include:

• the amount owed
• the invoice date
• a deadline to pay
• accepted payment methods
• your intention to file a claim if unpaid

Demand letters encourage settlement and show the court you acted reasonably.

Step 3: File a Plaintiff's Claim (Form 7A)

To formally start the lawsuit, complete and file Form 7A — Plaintiff's Claim.

Your claim must include:

• the facts of the dispute
• the amount owed
• your supporting documents
• interest (if applicable)
• your requested judgment

You must serve the claim on the defendant and file proof of service with the court.

Step 4: The Defendant's Response

Once served, the defendant has 20 days to file a Defence (Form 9A).

The defendant may:

• dispute the amount owed
• accept part but dispute the rest
• file a counterclaim (Defendant's Claim, Form 10A)
• fail to respond (resulting in possible default judgment)

Step 5: The Settlement Conference

Most cases proceed to a mandatory settlement conference, where:

• a judge reviews the evidence
• both parties explain their positions
• the judge encourages settlement
• missing evidence is identified
• deadlines or directions may be issued

Many unpaid invoice disputes settle at this stage.

Step 6: The Trial

If the case does not settle, it will proceed to trial.

At trial, both parties present:

• evidence
• witnesses
• timelines
• financial records
• communications

The judge decides based on the facts, documents, credibility, and the law.

Step 7: Collecting the Judgment

Winning a judgment does not guarantee immediate payment.

Enforcement options include:

• wage garnishment
• bank account garnishment
• writs of seizure and sale
• examination hearings
• payment orders

Creditors must take active steps to collect.

Common Mistakes or Misconceptions

• "I don't need evidence if the invoice is clear." Supporting documents increase success.
• "Partial payment means I can't sue." You can sue for the remaining balance.
• "A verbal agreement isn't enforceable." Verbal contracts can be enforced with evidence.
• "A judgment means automatic payment." Enforcement is often required.
• "I should inflate the claim." Inflated claims damage credibility.

When to Seek Professional Assistance

A licensed paralegal can assist when:

• the defendant disputes liability
• the invoice amount is contested
• evidence is complex or incomplete
• you need help preparing a clear, organized claim
• settlement conference or trial representation is needed
• enforcement options must be pursued

Professional help increases efficiency and improves the likelihood of recovery.

Sources

1. Courts of Justice Act — Small Claims Court Rules
   https://www.ontario.ca/laws/statute/90c43
2. Ministry of the Attorney General — Small Claims Court Procedures
   https://www.attorneygeneral.jus.gov.on.ca/english/courts/scc/
3. CLEO "Steps to Justice" — Suing for Unpaid Invoices
   https://stepstojustice.ca/
4. Ontario Government — Limitations Act, 2002
   https://www.ontario.ca/laws/statute/02l24