Debtor Won't Pay Small Claims Judgment Ontario: What to Do

The Judgment Is Real, But Collection Isn't Guaranteed

You won your Ontario Small Claims Court case. The judge ordered the other side to pay. But weeks or months later, nothing has arrived. No cheque, no e-transfer, no contact. The debtor is simply ignoring the court order.

This is frustrating, but it's also common. Debtors rarely pay voluntarily. The court issues the order; it's up to you to enforce it. The question is whether the debtor won't pay (they have money but are refusing) or can't pay (they genuinely have nothing). Your enforcement strategy depends on the answer.

Start With a Demand, Then Examine

Before filing enforcement paperwork, send a written demand — a clear letter stating the judgment amount, accrued post-judgment interest, and a payment deadline. This costs nothing and occasionally produces results, especially with corporate debtors or individuals who thought the judgment would just go away.

If the demand doesn't work and you do not know the debtor's assets or income, an examination hearing (Form 20H, $68) is one way to find them. The debtor must appear under oath (in person or via Zoom) and answer questions about their:

• Employment and income
• Bank accounts and balances
• Real property and vehicle ownership
• Business interests and accounts receivable
• Debts owed to them by third parties

You'll also get to review their Financial Information Form (Form 20I), tax returns, bank statements, and pay stubs. This examination tells you whether enforcement is worth pursuing and which tools to use.

When the Debtor Claims to Have Nothing

Some debtors genuinely have no garnishable income and no seizable assets. They're on Ontario Works or ODSP (exempt from garnishment), they don't own property, and their vehicle is under the $8,578 exemption threshold. This is sometimes called being "judgment proof."

Being judgment proof is usually temporary. People get jobs. They buy property. Their circumstances change. And here's what matters: Ontario judgments don't expire. Under the Limitations Act, 2002, there's no overall limitation period for enforcing a court judgment.

If more than 6 years have passed since the judgment, leave of court is required to issue a new garnishment or writ. An issued garnishment remains in force for 6 years from issuance and may be renewed before expiry with Form 20E.1. A writ remains in force for 6 years from issuance and may be renewed before expiry with Form 20N.

So when the debtor truly has nothing right now:

1. Register a writ of seizure and sale of land (Form 20D, $68 + $100 sheriff filing). Even if the debtor doesn't own property today, the writ catches any property they buy in the future. The moment they try to purchase a home, your writ appears on the title search and must be dealt with before the sale closes.
2. Set a calendar reminder to re-examine. You can examine the debtor again after enough time has passed for their circumstances to change — typically 12 to 24 months. Each examination costs $68.
3. Keep your interest running. Post-judgment interest accrues daily at the CJA section 129 rate (4.0% per annum for Q4 2026). The longer the debtor waits, the more they owe.

When the Debtor Won't Pay (But Has Assets)

If the examination reveals income or assets, the debtor is choosing not to pay. Your enforcement options are straightforward:

• Garnish their wages (Form 20E, $144) — 20% of net pay each pay period
• Garnish their bank accounts (Form 20E, $144) — captures whatever is in the account at service
• File a writ against their property (Form 20C or 20D, $68 + deposits) — blocks property transactions

You can run multiple enforcement tools simultaneously. There's no rule requiring you to exhaust one before starting another.

Contempt: When the Debtor Ignores Court Orders

If the debtor fails to attend an examination hearing after being properly served, or attends but refuses to answer questions or produce documents, the court may order a contempt hearing under Rule 20.11. If the judge orders committal, the clerk issues Form 20J (Warrant of Committal); the creditor may file Form 20K (Identification Form).

A contempt finding carries real consequences — the court can order sanctions including imprisonment for up to 5 days. Creditors rarely need to pursue this to its conclusion; the contempt motion alone usually motivates the debtor to comply with the examination.

When to Stop

Enforcement has diminishing returns. If you've examined the debtor twice, confirmed they're genuinely on social assistance with no assets, and there's no realistic prospect of their situation changing, the cost of further enforcement steps exceeds the likely recovery.

At that point, the practical move is to register a land writ (your cheapest long-term hold), renew it every 6 years, and wait. If the debtor's situation improves, you'll know — either through a future examination or because they'll need to clear your writ to buy property.

For the complete enforcement sequence, including examination questions designed to uncover hidden assets, see our Ontario judgment enforcement guide.

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