Build the file before sending another demand
Collect the contract, purchase order, invoices, delivery records, statements, emails and any acknowledgment of the debt. If there was no formal written contract, assemble the communications showing what was supplied, the agreed price and when payment became due.
Separate disputes about liability from disputes about amount. A customer who says the work was defective presents a different problem from one who admits the debt but says they cannot pay. That distinction affects whether negotiation, security, installments or litigation makes sense.
Limitation periods deserve early attention
B.C.'s Limitation Act provides a basic two-year limitation period for many civil claims, generally from discovery, with special rules and exceptions. Debt matters can raise issues about when the claim was discovered and whether an acknowledgment affects timing. Do not rely on informal collection activity to protect a court claim.
A demand letter should advance the file
A useful demand identifies the debt, explains the basis for payment, states the amount, sets a realistic deadline and preserves supporting records. Threatening consequences that are not available can undermine credibility. If a commercial relationship still has value, the letter can also propose a structured solution, such as a payment schedule, without giving up legal rights.
CRT, Small Claims or Supreme Court?
The amount and nature of the dispute affect where a claim may be started. Many small claims up to $5,000 fall within the Civil Resolution Tribunal, while Provincial Court Small Claims handles many claims from $5,001 to $35,000. Larger claims are generally pursued in B.C. Supreme Court, subject to jurisdictional exceptions. Review our court and tribunal guide before filing.
Winning a judgment is not the same as getting paid
Before spending heavily on litigation, consider whether the debtor has assets, income or an operating business. Enforcement may involve procedures such as garnishment or seizure, but the available steps depend on the judgment, the debtor’s assets and applicable exemptions. A commercially sensible claim looks at both legal merit and collectability.
Debtors should not ignore a claim
If you receive a demand or court document, determine whether the amount is accurate, whether there is a defence or set-off, and what response deadline applies. Ignoring formal proceedings can lead to default consequences. Keep records of payments and communications, and obtain advice before signing an acknowledgment, settlement or security agreement you do not understand.
What to prepare for a debt-recovery consultation
- Contract, invoices and account statements.
- Proof of delivery or completion.
- Payment history and any partial payments.
- Correspondence acknowledging or disputing the debt.
- Information about the debtor’s current business or assets, if lawfully known.
- Any court documents already received.
Related Burnaby legal guides
Use the breach of contract guide when liability is disputed. For broader litigation strategy, see civil disputes in Burnaby.
Sometimes. A payment plan can be practical when the debtor has cash-flow problems but remains viable. The written agreement should address amount, dates, default consequences and whether any security or acknowledgment is appropriate, with legal advice where the debt is significant.
Should a business accept installments?
Generally, enforcement remedies such as garnishment require a legal basis and procedure, often after obtaining a judgment or through specific pre-judgment processes where available. A demand letter by itself does not create the same enforcement rights as a court order.
Can a creditor garnish wages or a bank account immediately?
Many civil debt claims are subject to B.C.’s basic two-year limitation period, generally measured from discovery, but special rules can apply. Partial payments or acknowledgments can also create timing issues. Confirm the deadline for the specific debt instead of relying on a general rule.