Sued in Ontario Small Claims Court for a Debt: What Happens Step by Step
If you have been served with a Plaintiff’s Claim (Form 7A) from the Ontario Small Claims Court, a creditor has sued you and the clock is running: you have 20 calendar days from service to file a Defence (Form 9A). Do nothing and the plaintiff can have you noted in default and, for a straightforward debt, take judgment from the clerk without a hearing. File a defence and the case moves to a mandatory settlement conference and, if needed, a trial. Here is each stage and where you can still change the outcome.
Why the case is in Small Claims Court
The Small Claims Court hears claims for money up to $50,000, not counting interest and costs. The limit rose from $35,000 on October 1, 2025, and a claim within it generally cannot be started in the Superior Court without leave, so a consumer debt of $50,000 or less almost always lands here. How you were served fixes your deadline: papers left with an adult in your household and mailed are deemed served on the fifth day after mailing; registered mail or courier, on the day someone signed. Read the claim carefully: the amount, the interest rate, the dates, whether the plaintiff actually owns the debt, and whether the document it rests on is attached, as required.
The 20-day clock: filing a Defence (Form 9A)
Rule 9.01 gives you 20 days from service to serve a Defence on every other party and file it with proof of service. Weekends count, but if day 20 lands on a weekend or holiday, the deadline moves to the next business day. The fee is $77, waivable if you cannot afford it, and you can file online or at the courthouse.
The defence is not a formal pleading: it gives your reasons “in concise non-technical language with a reasonable amount of detail” and attaches any document you rely on. Reasons that matter in debt cases: the balance or interest is wrong, payments were not credited, the plaintiff cannot show it owns the account, or the claim was started too late. Check the last one first: the basic limitation period is two years from discovery, and a limitation period defence is a complete answer where it applies, though a signed acknowledgment or part payment before the period ran out restarts it.
The same form lets you admit liability and propose terms of payment. If the plaintiff does not dispute the proposal within 20 days, you pay on those terms as if they were a court order; if it does, the clerk sets a terms of payment hearing. Either way, you are not in default.
If you do nothing: noting in default and default judgment
Once the 20 days pass, the plaintiff files a Request to Clerk (Form 9B) with proof of service and the clerk notes you in default. For a debt or liquidated demand — a fixed sum, as nearly every collection claim is — the clerk may then sign default judgment (Form 11B) for the amount claimed, plus any interest claimed, without a hearing; you learn of it when it arrives by mail or email. You then cannot take any step, other than a motion to set aside, without the plaintiff’s consent or the court’s leave, and the next thing you hear may be a garnishment.
Default is not necessarily the end. Under Rule 11.06 the court may set aside the noting in default, the judgment, and any enforcement step on a motion if you show a meritorious defence, a reasonable explanation for the default, and that you moved as soon as reasonably possible; you may also show that the claim never reached you. If the plaintiff agrees, a Request for Clerk’s Order on Consent (Form 11.2A) does the same without a motion. See setting aside a default judgment in Ontario.
The settlement conference
A settlement conference is held in every defended action, within 90 days after the first defence is filed, and it is not optional: you must participate, a defendant who misses two conferences can have the defence struck out, and costs can be awarded against anyone who arrives unprepared. At least 14 days before, each side must serve and file every document it will rely on at trial and a List of Proposed Witnesses (Form 13A), often a defendant’s first look at the plaintiff’s account records and chain of title.
The conference is private, run by a judge or referee who will not preside at trial. The judge can order production of documents, strike out an unsupported claim or defence, dismiss the action, and award costs (capped at $100 for the conference). If the case is not resolved within 30 days of the conference, a party must request a trial date. Our settlement conference guide covers what to bring and how to negotiate.
Trial, and what comes after it
The clerk fixes a trial date on request (Form 9B); a trial management conference may come first. Trials are summary: the judge decides law and fact “in a summary way” under relaxed evidence rules, and documents served on every party at least 30 days before trial go into evidence unless the judge orders otherwise. The plaintiff still has to prove the debt exists, that it owns it, that the figures are right, and that the claim was in time. If you do not attend, the judge can strike the defence and let the plaintiff prove the amount; that judgment can be set aside on motion within 30 days of learning of it. After judgment, the court can order instalments, a new trial can be sought within 30 days on narrow grounds, and an appeal lies to the Divisional Court only where the judgment exceeds $5,000.
Costs, and why offers to settle matter
Costs are tightly limited: under section 29 of the Courts of Justice Act, costs other than disbursements cannot exceed 15 per cent of the amount claimed unless the court needs to penalize unreasonable behaviour. Disbursements are recoverable on top; within the cap, a represented party may be awarded a reasonable representation fee and a self-represented party up to $500. Offers to settle change the arithmetic: serve a written offer (Form 14A) at least seven days before trial, and if the plaintiff’s judgment is no better than your offer, the court may award you up to double costs from that date; the reverse applies if you reject a plaintiff’s offer and the plaintiff does at least as well at trial. A realistic offer after the settlement conference is one of the few levers a defendant controls.
Frequently asked questions
Does the 20 days run from the date on the claim or the date I got it? From the date you were served, not the date the claim was issued. With alternative service, the rules deem service effective on a set date (for example, the fifth day after a copy was mailed to you).
Can I get more time to file a defence? Possibly. The court can lengthen any time set by the rules, and the parties can extend a filing deadline by filing their written consent. Ask in writing before the deadline.
Do I need a lawyer or paralegal? No. Lawyers and licensed paralegals may appear, and many defendants represent themselves. Weigh the amount at stake against the cost, since the rules cap what a winner recovers.
Work out your position before the deadline
The most important date in a Small Claims debt case is the twentieth day after service. Tell us what is in your claim, and we will help you work out whether the right move is a defence, a payment proposal, a limitation argument, or a motion to set aside.
Sources: Rules of the Small Claims Court, O. Reg. 258/98, rr. 3.01, 7.01, 8.01–8.10, 9.01–9.03, 11.01–11.06, 11.2.01, 13.01–13.10, 14.01–14.07, 16.01, 16.1, 17.01–17.04, 18.02, 19.01–19.07 · Courts of Justice Act, R.S.O. 1990, c. C.43, ss. 23, 25, 27–29, 31 · Small Claims Court Jurisdiction and Appeal Limit, O. Reg. 626/00 · O. Reg. 42/25 (amending O. Reg. 626/00, in force October 1, 2025) · Guide to procedures in Small Claims Court: Replying to a claim, Ministry of the Attorney General · Guide to procedures in Small Claims Court: Getting ready for court · Small Claims Court fees, Ontario.ca · Small Claims Court – Fees and Allowances, O. Reg. 332/16 · Rules of the Small Claims Court Forms — Ontario Court Forms · Limitations Act, 2002, S.O. 2002, c. 24, Sched. B, ss. 4, 5, 13 · How to respond to a case — Ontario Superior Court of Justice, Small Claims Court. General information for Ontario, not legal advice.
General information for Ontario, not legal advice. Reviewed by Angelos Spingos. Last reviewed September 21, 2026.