I'm being sued by someone in Small Claims Court. What should I do?

WHAT TO DO IF YOU ARE BEING SUED FOR UNPAID DEBTS

Here is what happens when a creditor sues you and gets a small claims court judgment against you. Creditors can make you pay the judgment and costs in full.

How to Win in Small Claims Court

Do not ignore the claim.

 

Take action. If you don't take action, your creditor can 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:

 

1. Negotiate a settlement.

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.

2. Pay the claim.

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.

3. File a defence.

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.

 

You can find how to file a defence, the help you need and the correct forms are listed on the  CanLaw Small Clams court pages. Click here

 

If you do not file a defence the court will award the creditor with a judgment against you.

4. What happens next?

 

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

 

 

CAN'T PAY YOUR BILLS?

If you are not making your monthly payments, are maxed out on your credit cards and loans, you have serious money problems.

 

You have a bad credit rating with Trans Union and Equifax. Your credit score will be bad and this could lead to employment problems and worse.

 

This CanLaw section provides you with many potential solutions to help you get out of debt.