What to do next
Assess collectability first
Corporate searches, whether they are still trading, whether there are prior registered security interests. This determines whether pursuit is worth it, and it is the step most often skipped.
Send a proper demand
Set out the amount, the contractual basis, the documents, and a deadline. A lawyer's demand letter resolves a meaningful share of commercial debts at low cost — it signals you will actually proceed.
Check the contract for the forum and interest
An arbitration clause means court is not available. Also check contractual interest and cost-recovery provisions — they materially change the economics of pursuing.
Watch the limitation period and consider security
Limitation periods run from when the debt was due. Where you supplied goods or services on credit, registering a security interest or, in construction, preserving lien rights may give you priority a judgment never will.
Frequently asked questions
Is it worth suing?
Only if the debtor can pay. Search the corporation and check for prior security before spending on litigation — a judgment is not money.
Which court?
Small claims below the provincial threshold, superior court above it. If the contract has an arbitration clause, arbitration instead — courts generally enforce those clauses.
Can I charge interest?
If the contract provides for it, generally yes at the contractual rate. Without a term, statutory prejudgment interest applies, which is usually lower.
What if they've gone bankrupt?
You become an unsecured creditor and file a proof of claim. Recovery is usually minimal, which is why security registered up front matters so much.
This is general information, not legal advice. Laws vary by location and every situation is different — speak with a qualified lawyer about your specific circumstances.