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Take action. If you don't take action, your creditor will get a default judgment from the court. Then you will not have the chance to negotiate or to present your side of the story.
There are three actions that you can take:
Contact your creditor if you haven't already done so. You may be able to negotiate a payment plan that you can handle. If you and your creditor agree to a plan, the creditor should
immediately inform the Civil Division of Provincial Court in writing that the matter has been settled.
You can pay the claim and related costs to the court, or directly to the creditor or his representative. Make sure you get a receipt. The court will only accept payment by cash, certified
cheque or money order. You will not have to appear before a judge if you choose this action.
The court documents you were served will tell you how many days you have to file a defence. It is around 20, but varies by province.
If you do not file a defence the court will award the creditor with a judgment against you.
Once you file a defence the court will hold a settlement conference and advise you of the date.
If a settlement is reached that ends the matter.
If no settlement is reached, the creditor must request a trial.
If you don't appear in court on the day of the trial, the creditor may still get a judgment against you in the full amount.
For more information please consult the CanLaw Guide to Small Claims Courts click here
A judgment appears on your credit record and will lower your credit rating and credit score.
Even after you pay the debt, the judgment record will remain on your credit record for several years.
Businesses may not be willing to give you credit if you have a judgment on your record.