I Received a Statement of Claim for a Debt: 5 Steps to Take Right Away
By Julie Jaggernath
November is Financial Literacy Month in Canada, #FLM2026, and the #TalkMoney campaign is all about talking openly about money. To help you get ready for a conversation, we developed a suite of new financial games, tools, and resources. However, few money conversations are harder to start than the one that begins when a court envelope lands on your doorstep.
A reader recently asked us what to do after receiving a statement of claim, and where to go from there. It’s a question we hear often, usually from someone who’s had the envelope sitting on the kitchen counter for a few days. Here’s the short version: a statement of claim for debt in Canada means a creditor has started a lawsuit against you over a debt, and you have a limited number of days to respond. These five steps will help you use that time well.
1. Check Whether It’s a Court Claim or a Demand Letter
Not every worrying letter about a debt is a lawsuit, and the difference matters. A demand letter comes from a creditor, a collection agency, or their lawyer. It asks you to pay by a certain date, it isn’t filed with a court, and while no legal deadline runs from it, if you miss the time limit they set, legal action could follow.
A court document looks different. It names a court, carries a court file number, lists you as the defendant, and states how long you have to respond with a statement of defense, which Alberta calls a dispute note. Depending on your province and the size of the claim, it may be called a statement of claim, a plaintiff’s claim, a civil claim, or a notice of claim. The wording on the form matters less than what it means. It basically states that a court has been asked to decide whether you owe this money. Smaller consumer debt claims are often heard in small claims court, where the process is designed for people without a lawyer.
If you aren’t sure whether you’re being sued or simply being pursued for payment, call the court office named on the document. Staff can’t give you legal advice, but they can confirm whether a claim has been filed.
2. Find Your Deadline to Respond, Then Count the Days
Your deadline to respond is printed on the document itself, usually on the first page or the reverse. Read it before you do anything else because response windows are short and they differ across the country. Most courts charge a fee to file your response, and many now accept filings online, so check the court’s website for both. If the fee is more than you can manage, ask the court registry about having it waived, since every province has a process for that.
Across Canada, you’ll usually have somewhere between 14 and 20 days if you were served in the province where the claim was filed, and longer if you were served elsewhere. British Columbia allows 14 days to file a reply, whether the claim is at the Civil Resolution Tribunal or in Small Claims Court. Ontario and Alberta both allow 20 days for most claims.
The clock starts the day you’re served, not the day you open the envelope. If your deadline has already passed, it’s still worth calling the court, because a late filing is sometimes possible, and a default judgment can sometimes be set aside.
3. Reply Even If You Know You Owe the Money
This is the step that matters most when you’re being sued. If you don’t respond, the creditor can ask the court for a default judgment, which is a judgment against you without a trial and without further notice to you. In some provinces you’re noted in default first for missing the deadline. In British Columbia, when the claim is for a debt, a default order can be made without a hearing at all.
Replying isn’t the same as picking a fight, and it isn’t a promise to pay in full. Reply forms generally give you room to agree with all or part of the claim and to set out what you can realistically afford. If the creditor accepts your proposed payment, they may simply close or withdraw the legal action before a court date is ever set.
Not being able to afford payments on a debt isn’t a defence on its own. If the court decides the money is owed, a judgment will follow. By responding with enough details, you can make sure the court hears how much you’re able to pay. This puts you in a far better position than silence.
4. Check the Claim for Errors Before You Promise Anything
Read the claim closely before you sign, pay, or agree to anything. Is the amount right, including interest and fees? Do you recognize the creditor, or is it a company that bought the debt? Is the debt yours at all?
Then look at how old it is. Every province sets a limitation period, the window a creditor has to bring a lawsuit. Once that window closes, the debt is statute barred, which means the creditor has lost the right to enforce repayment through the courts, though you may still owe the money and collectors can still ask you to pay. In much of Canada that window is two years, Quebec’s is three, and some provinces and territories allow longer. The rules in the province where the claim was filed are the ones that count.
Two things are worth knowing. Making even a small payment, or confirming the debt in writing, can restart that limitation period. And an expired limitation period only helps you if you raise it in your response, since the court likely won’t apply it on your behalf. Ignoring a claim you believe is too old can still end with the creditor getting a default judgment.
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5. Weigh Your Repayment Options Before the Court Date
Once a judgment is granted, a creditor can apply to garnish your wages. How much they can take depends on your province, and it comes off your net pay, not your gross. Ontario protects 80% of net wages, so a creditor can take up to 20%. British Columbia protects 70%, with a minimum amount you keep each month. Alberta uses a formula that exempts a set monthly amount plus half of what you earn above it. Whatever the wage garnishment formula where you live, a garnishment of your income, a frozen bank account, or a lien against your property, is worth avoiding.
Many creditors will accept a reasonable payment arrangement rather than see the legal process through because court is expensive and small claims court can be slow. If you can pay in full, contact the creditor or debt collector right away. If you can’t, one of our credit counsellors can explain other debt relief options and help you put a realistic offer together. A consumer proposal or filing for bankruptcy also triggers a stay of proceedings, which stops most collection action, including a garnishment already underway. Even if you think you might be insolvent and need a trustee, check in with one of our credit counsellors first, just to be safe, because you don’t know what you don’t know.
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Free Help and Advice When You’re Being Sued Over a Debt
Getting a notice of claim for a debt in the mail unsettles any Canadian, but it isn’t the end of the story, and you have more say in what happens next than it may feel like right now. The sooner you deal with being sued, the more options stay open to you. If you’re facing a statement of claim and aren’t sure what you can afford to offer, book a free, confidential, and non-judgmental appointment with one of our credit counsellors. We’ll review your whole situation with you and help you work out a plan. Reach out anytime. We’re happy to help.
This article is general information, not legal advice. For legal advice about your own situation, contact a lawyer or your provincial legal aid office.
Last Updated on October 22, 2026
