Small Claims Court

T

TRUCKIT

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Jul 25, 2008
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As of January 1, 2010 the upper limit for actions commenced in Small Claims Court will increase from $10,000.00 to $25,000.00. This is the first increase in the jurisdiction of the Small Claims Court since 2001.

This is great news for trucking companies and alike to significantly reduce collection costs. This will allow the advancing of lawsuits utilizing the simpler procedures of Small Claims Court without facing prohibitve legal fees.
 
But just besause i get a court ruling,doesn't put the money in our account...right?what do i do once i get the court ruling in our favor?
 
Small Claims

It has already happened to me a couple of times. I have won judgement in court and still have never seen a dime. The courts or the police will not enforce payment and the defendant just keeps right on ripping people off.:(
 
You will need to file a notice of garnishment with the court ($100 cost). Before doing that you will need to find out which bank the "delinquent" is currently using. This can be difficult if they have closed their account and changed banks. If you are having difficulty locating their branch - ask around on the forum - chances are someone else is currently receiving payments from them. Call their references on the credit application they originally submitted to you - they might be able to assist.

Once you have their bank info - you file the following forms at court:

20P - 20E and 20F (20F - 1st page only)
Court will receive a copy of 20P & 20E
Delinquent will be sent copy of 20E & 20P (do this a few days later - courier)
Bank will receive a copy of 20E & 20F (1st page completed only - courier)

You then need to follow up at court again with affidavits - form 8A (2 to file) showing proof you served copies to the delinquent and the bank.

Make sure you take at least 3 copies of each form noted above to court - they charge quite alot to make a photocopy if you come up short in requirements.

Once all of these forms are done and filed - you can follow up with small claims enforcement department if they have received any funds.

You can find court forms and information here: http://www.ontariocourtforms.on.ca/

Before doing any filing - I would contact the delinquent first and try to make payment arrangements with them - if that fails or they fall thru on an agreement - start the garnishment process.


Good Luck with your collections.
 
It is not up to the courts or the police to collect your receivables. The legal process does not releive you from your responsibility to perform due diligence when granting credit in the first place. The SCC process if you are succesful allows you the right to seriously effect a companies credit standing, receive a garnishment and possibly seize assets from a bank account. You must persue deadbeats who do not pay to the full extent of the law. If we were all to do this we could seriously reduce the amount of bad debt these bums produce.
 
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