Unpaid Invoice in Nunavut? How to Recover the Money Through Small Claims Court

You delivered the work, sent the invoice, followed up twice, and the client still has not paid. For sole traders and small businesses in Nunavut, an unpaid invoice can mean the difference between making payroll and not — especially when the territory's short building season compresses most commercial activity into a few months.

The Nunavut Court of Justice handles small claims up to $20,000 CAD, and unpaid invoice disputes are one of the most straightforward claims to file because you already have the paperwork.

When Small Claims Court Is the Right Move

Small claims is the right forum when the amount owed is $20,000 or less (excluding interest and costs), and the dispute is a straightforward debt — you provided goods or services, the client agreed to pay, and they have not. If your invoice exceeds $20,000, you can abandon the excess to bring it within the limit, but you cannot recover that abandoned portion later.

Before filing, confirm you are not dealing with a statutory exception. Statutory employment-standards disputes must use their applicable administrative process before judicial intervention. Claims against the Government of Nunavut may require special notice procedures.

Build Your Case File Before Anything Else

Unpaid invoice claims succeed or fail on documentation. Gather these before you spend the $75 filing fee:

• The invoice itself with dates, amounts, and a description of the work or goods delivered
• The contract, purchase order, or email chain where the client agreed to the work and price
• Proof of delivery — signed delivery receipts, completion photos, or an email from the client acknowledging the work was done
• Follow-up communications — every email, text, or voicemail where you asked for payment and the client either ignored you or made excuses
• A financial breakdown showing the original invoice amount, any partial payments received, and the outstanding balance

Send the Demand Letter

Mail a formal demand letter giving the client 14 days to pay. State the invoice number, amount, the date the work was completed, and that you will file a claim in the Nunavut Court of Justice if payment is not received by the deadline.

Send it by registered mail and keep the Canada Post tracking slip. If the client is a corporation, send the demand to the registered office address — not just the project site or the person you dealt with.

A well-written demand letter resolves a surprising number of unpaid invoice disputes. Businesses that ignore casual reminders often pay once formal legal language appears.

Filing the Notice of Claim

If the client does not pay by the demand deadline, you can file your Notice of Claim with the Civil Registry; a demand letter is standard practice, not an absolute condition for filing. You can file in person in Iqaluit, by mail, or by emailing a PDF to [email protected] with phone payment of the $75 fee at 1-866-286-0546.

Name the defendant correctly. If your client is an individual sole proprietor, name the person and their operating name. If the client is a corporation, order a Corporate Profile Report through Legal Registries ($30–$40) to get the exact corporate name, registered office, and whether the company is active, struck, or dissolved.

Attach copies of your invoice, the contract or agreement, proof of delivery, your demand letter, and the delivery receipt.

The Advantage of a Liquidated Claim

Unpaid invoices are usually "liquidated" debts — the amount is fixed and calculable from the contract. This matters because if the defendant does not file a Reply within 30 days of being served, the Registrar may enter default judgment administratively if the required steps are met, including filing the application and proof of service.

This is a significant advantage over claims for unliquidated damages (like property damage estimates), which require an assessment hearing even in default.

Collecting After Judgment

Winning the judgment is step one. If the client still does not pay, you can pursue enforcement through a payment hearing to examine their assets, wage garnishment, or a Writ of Execution directing the Sheriff to seize property.

Garnishment of a bank account or receivable owed by a third party is one option. A payment hearing and Writ of Execution are other routes; the appropriate step depends on what assets the debtor has.

The Making a Small Claim in Nunavut guide includes a demand letter worksheet, evidence index, and enforcement checklist designed for exactly this kind of claim.

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