BC Small Claims Court Unpaid Invoice: How to Sue for Money Owed

When an Unpaid Invoice Becomes a Court Claim

You delivered the goods or finished the work. You sent the invoice. Thirty days passed, then sixty, then ninety. The client stopped returning emails. At some point, an unpaid invoice stops being a collections problem and becomes a legal claim.

If the outstanding amount is between $5,001 and $35,000 CAD, the BC Provincial Court Small Claims Division is the right forum. Below $5,001, the Civil Resolution Tribunal handles it. Above $35,000, you need BC Supreme Court — though you can abandon the excess to stay in small claims if the streamlined process is worth more to you than the extra dollars.

Unpaid Invoices Are Liquidated Debts

This matters because liquidated debts — fixed amounts owed under a contract — have a faster path to judgment than unliquidated damages (where the court must calculate the loss). If your client does not file a Reply to your claim within the 14-day deadline, you can apply for a Desk Default Order from the registrar. The registrar issues a Payment Order for the invoice amount plus pre-judgment interest and your filing costs, without a hearing.

Unliquidated claims (like "my contractor did bad work and I need $8,000 in repairs") require an Assessment Hearing even on default. A straight unpaid invoice skips that step.

Step 1: Demand Letter

Send a formal written demand before filing. State the invoice number, the amount owed, the services or goods delivered, and a 10-to-14-day deadline to pay. End with a clear statement that you will file in Provincial Court if payment is not received.

Send it by registered mail for proof of delivery. If the debtor is a company, send it to the registered office address (not just the office where you dropped off the work).

Step 2: Verify the Debtor's Legal Name

If your client is a business, run a search on BC Registries and Online Services before filing. You need the exact legal corporate name and the registered office address for service. Suing "Metro Design Studio" when the legal entity is "Metro Design Studio Inc." can make your judgment unenforceable.

Attach the corporate search printout to your Notice of Claim — the registry requires it when you are suing an incorporated company.

Step 3: File Your Notice of Claim

Complete Form 1 and Form 38 (Address for Service). Your claim narrative for an unpaid invoice is straightforward:

• The contract or agreement (written or verbal) under which you provided services.
• The date the invoice was issued and the payment terms.
• The amount outstanding.
• That you sent a demand letter and the client did not pay.

File at the registry nearest to where the debtor lives or carries on business, or where the contract was performed. The filing fee is $156 for claims over $3,000, plus $7 if filing through CSO.

Step 4: Serve the Debtor

Serve the Notice of Claim within 12 months. For a company, deliver to the registered office or send by registered mail with signature confirmation. For an individual, serve them personally or by registered mail. File the Certificate of Service (Form 4) with the registry afterward.

Step 5: Wait for the Reply (or Default)

The debtor has 14 calendar days to file a Reply if served in BC (30 days if served outside the province).

If they do not reply: Apply for a Desk Default Order. The registrar issues a Payment Order for your invoice amount, pre-judgment interest calculated under the Court Order Interest Act, and your filing costs. No hearing required.

If they reply and dispute the invoice: The registry schedules a settlement conference. The judge will look at your contract, the invoice, proof of delivery, and any communications about the work. Bring everything.

If they reply and propose a payment plan: The registry forwards the proposal to you. If the payment terms are acceptable, sign a Consent Order. If not, request a Payment Hearing where a judge sets a binding payment schedule.

Pre-Judgment Interest on Unpaid Invoices

Under the Court Order Interest Act, you are entitled to pre-judgment interest from the date the invoice was due until judgment. The statutory rate is adjusted semi-annually by the Registrar of the BC Supreme Court. If your contract specifies an interest rate on overdue invoices (like 1.5% per month), the contractual rate applies instead, as long as it complies with federal lending law.

Include the interest claim in your Notice of Claim. You do not need to calculate the exact amount at filing — the registrar calculates it at the time of the default order or the judge calculates it at trial.

Collecting After Judgment

A Payment Order does not mean money in your account. If the debtor does not pay voluntarily, you move to enforcement: a payment hearing to examine their finances, garnishment of wages or bank accounts, seizure and sale of personal property, or registering the judgment against real property through the Land Title and Survey Authority.

For a complete system that walks you through every step from demand letter to enforcement, see our BC Provincial Court small claims guide.

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