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What You Can Do If You Are Sued in the Small Claims Court

In Ontario, there are thousands of new Small Claims Court Actions filed each year. Small Claims are usually filed by lenders such as banks, financial companies, and collection agencies who represent these lending organizations. In some instances, court actions are also filed by individuals and businesses for a particular incident or dispute.

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Small Claims Court

How Small Claims Court Action Are Filed

Small claims court action in Ontario can only be filed if there is a minimum of $25,000 in debt. It can be done through the following steps. 

1. One party files a claim against another party.

2. The other party can then file a Defense.

3. If no Defense is filed, the party who initiated the claim can apply for default judgment.

4. If a Defense is filed, the parties will then attend a pre-trial conference and if they are unable to settle the matter, the case will proceed to trial. At trial, if the party who initiated the claim is successful he will be awarded judgment.

Court Judgment

Once a Court Judgement has been awarded, the party who has the judgement can enforce the action using various Small Claims court remedies.

  • File the judgement with the Sheriff’s office so that in the future if the individual tries to apply for new credit, the individual will be required to pay off the judgement before he can obtain his financing.

  • Apply for Wage Garnishment – a “Notice of Garnishment” will be sent to the debtor’s employer requiring to remit up to 20% of the debtor’s net salary to the small claims court.

  • The party who holds the judgement can also file a lien on the debtor’s property, such as home or vehicle. The bank account of the debtor can also be frozen if this is disclosed under the debtor’s assets or earnings.

Dealing with Small Claims Court Judgement

Your Options When Dealing with Small Claims Court Judgement

Pay Off Your Debt

This is the simplest way to get rid of the lawsuit or small claims court judgement. If you have family or friends who can lend you enough funds to pay off your debt, this is the way to go.

Defend Yourself or Hire a Lawyer

If you feel that a small claims lawsuit is filed against you by mistake or if what is being claimed is false, you have the right to defend yourself and go to trial. Prepare yourself and present your evidence such as documentary proofs if any.

Get a Debt Consolidation Program

Paying off your debt may be difficult and defending yourself in court can be overwhelming. If you are suffering from severe financial hardship and unable to pay what you owe, a debt consolidation program is the best option for you.

If you apply for a debt consolidation program, your creditors are not allowed to contact you and collect money from you anymore. It will also help you stop lawsuits, wage garnishment, and freeze interest.

Many Canadians have benefited from this program as it can reduce your debt by up to 75%. If you need help, National Debt Relief is a trusted company offering debt relief. With over 400+ Positive Reviews in Google, National Debt Relief has proven to be a reliable partner in debt forgiveness. 

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James Fish
James Fish
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Jennie was very helpful and professional throughout the entire process. She made sure I would get the best help I could get, and put terms into words that I could understand. One of the best decisions I've made to ensure a better future.
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When I requested information initially, they immediately contacted me. I spoke with Dionne Sceviour and she was wonderful. She showed compassion and patience while I explained my debt situation, and above no judgment. She was always available if I had any questions I forgot to ask prior. She was excellent at her job that by the end of the week I was fully signed and ready to start my consumer proposal. Speaking of which, She managed to get me out of a ton of debt that my monthly payments got drastically reduced. I was skeptical when I first got in touch with National Debt relief services but they worked wonders!!!!
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Sylvana was a pleasure to deal with. I will recommend her to friends and family. A+ service. Very professional.
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Top 5 Key Benefits of our Ontario Debt Relief Program:

To know more what you can benefit from our Ontario Debt Relief Program, simply try our Debt Consolidation Calculator below and one of our debt specialists will get in touch with you and provide you the best debt relief option that fits your situation.

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Talk to us! We will help you get out of debt.

We will help you reduce as much as 75% of your debts and consolidate it into a single affordable monthly payment. Your creditors will stop harassing you and all interest will freeze if you get into our Ontario Government Debt Relief Program.

Many Ontarians are already benefiting from our Debt Relief Program, YOU should too!

Find out how much you can write off portion of your debts by getting your Free Savings Estimate below. A debt specialist from National Debt Relief Services in Ontario will discuss all options and provide you tailor-fitted Debt Relief Program.

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Frequently Asked Questions

A Debt Consolidation is a negotiated debt settlement offer made between you and your creditors with the help of a Debt Relief Agency in Ontario. Some key benefits of Debt Consolidation are interest-free program, no upfront fee required, combined monthly payment into one affordable amount, no lawsuits, and many more.

Yes, your assets are safe from creditors. A licensed debt relief agency in Ontario will help you come up with an offer to your creditors that will make sure your assets will be out of the paper.

No, in fact, this is one of the great advantages of a Debt Consolidation Program. All wage garnishment will stop from the day you filed the proposal.

The effect on your credit score is not going to be severe. Your credit score will most probably go to R7 Rating and will remain in your credit report for another 3 years after you completed the program. This means that it will not be permanent and you will still be able to rebuild your credit score.

 

This varies depending on the proposal you will be discussing with the help of a certified debt relief agency. It is also worth noting that debt consolidation cannot exceed more than 5 years.

If a debt is shared, you need to file a joint debt consolidation offer to your creditors. However, in most cases, in which the debts are individually incurred will have no impact on your spouse.

After three missed payments, your debt arrangement with creditors will be broken and you will end up getting chased again for the original debt amount plus interest.

A debt consolidation offer can be paid off earlier if you can. In this way, you receive your “Certificate of Completion” sooner and you can immediately start rebuilding your credit score. 

National Debt Relief Services Ontariois a certified Canadian Debt Relief Agency that offers FREE CONSULTATION to your debt consolidation needs. We value the trust given to us by our clients by making sure your personal information is confidential and private. Our personalized plans are designed to tailor fit your financial capacity. Our specialists will get in touch with you by simply answering a few questions thru the link provided below.

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