How to Sue for Unpaid Money in PEI Small Claims Court

When someone owes you money and will not pay — an unpaid invoice, a personal loan, a service you delivered but were never compensated for — PEI small claims court is the fastest and cheapest legal remedy available. Here is how to turn an unpaid debt into an enforceable court judgment.

Is Small Claims the Right Forum?

If the principal debt is $16,000 CAD or less, yes. The Small Claims Section of the Supreme Court of PEI handles claims for debt or damages, and unpaid money is the most straightforward category. Pre-judgment interest, post-judgment interest, and court costs do not count toward the limit. The filing fee is $50, and you do not need a lawyer.

If the principal debt is more than $16,000, you can abandon the excess (a permanent waiver) or file in the General Section.

One exception: if the debt is a residential tenancy matter (unpaid rent, security deposit), that goes to IRAC, not Small Claims.

Building Your Case

Unpaid debt claims are among the strongest in small claims because the evidence is usually clear:

• Written agreement or contract — even an email chain confirming the work and the price
• Invoices — with dates, amounts, and descriptions of what was provided
• Proof of delivery — signed delivery receipts, completion photos, time logs
• Payment history — bank statements showing partial payments or the absence of any payment
• Communications — texts, emails, or letters where the debtor acknowledged the debt or promised to pay

The cleaner your paper trail, the faster the hearing goes. A claim based on a written invoice with delivery confirmation is hard to dispute.

The Steps

1. Send a demand letter. State the amount owed, the original due date, and a 10–14 day deadline to pay. Mention that you will file in the Small Claims Section of the Supreme Court of PEI if the debt is not settled. Send by registered mail.

2. File Form 7A. At the Charlottetown or Summerside registry, with the $50 filing fee. Attach your invoices, contract, proof of delivery, and the demand letter with proof it was sent.

3. Serve the defendant. Personal service may be carried out by you, an adult agent, the Sheriff ($50 per hour or attempt, plus travel), or a private process server. File Form 8B afterward.

4. Wait for the response deadline. It is 20 days if the defendant was served within PEI, or 40 days if served outside PEI. If no defence is filed, file Form 8B (Affidavit of Service) and request an Order Noting Defendant in Default (Form 11C). For a liquidated debt, you can then request default judgment under Rule 11.02; the clerk may enter judgment from the filed documents. An unliquidated claim requires an assessment.

5. Attend the hearing if the defendant responds. Present your documents, explain the debt, and answer the judge's questions.

Claiming Interest

If your contract specifies an interest rate, the court enforces it (provided it complies with the federal Interest Act). Without a contractual rate, you can claim pre-judgment interest under Section 53 of the Judicature Act at the bank rate set by the Prothonotary.

Include your interest calculation in the Statement of Claim: principal amount × annual rate × (days outstanding ÷ 365). Interest does not count toward the $16,000 limit.

After Judgment

If the defendant pays, the matter is closed. If they do not, enforcement options include garnishment of wages or bank accounts, and execution against property. Judgments are enforceable for 10 years.

The PEI Small Claims Filing Guide includes an interest calculator, a demand letter template, and an enforcement tracker.

See more Prince Edward Island guides →