You’ve done the work. Sent the invoice. And now you’re watching the payment deadline come and go while your client ghosts you. Chasing unpaid invoices is one of the most frustrating parts of running a business. It’s not just about the money, though that matters plenty. It’s the principle. You held up your end of the deal, and now someone’s treating your work like it was optional. British Columbia law gives you options for recovering what you’re owed. The process isn’t always quick, and it won’t always be easy, but businesses collect on outstanding debts every day. You just need to know which path makes sense for your situation.
Send A Formal Demand Letter
A demand letter is your formal, written notice that tells the client exactly what they owe and when you expect payment. It’s not aggressive. It’s professional. But it shows you’re serious about collecting, and that alone gets results more often than you’d think. Your demand letter needs to include specific details:
- Invoice number and date
- Total amount owed
- Breakdown of what services you provided
- A firm deadline for payment, usually 10 to 14 days out
- What happens next if they don’t pay
When a lawyer sends the demand letter, it carries a different weight than when you send it yourself. Clients realize you’re not bluffing about taking action. A Coquitlam business litigation lawyer can handle this for you, and honestly, it’s worth it for the response rate alone.
Consider Small Claims Court
If your debt is under $35,000, Small Claims Court might be your best option. The process is faster than the Supreme Court and way less expensive. You don’t technically need a lawyer to file, though getting legal advice before you start helps you avoid mistakes that could cost you later. Most people get a hearing date within a few months, which is pretty reasonable compared to other legal processes. Filing costs can be a few hundred dollars total. Win your case, and the court orders your client to pay the debt plus your court fees. But winning a judgment doesn’t mean money magically appears in your bank account. You still need to collect, and that’s a whole separate step.
File In BC Supreme Court
Anything over $35,000 has to go through the BC Supreme Court. This route is more formal. It takes longer. It costs more. And you’ll almost certainly need legal representation because the rules and procedures get complicated fast. But for larger debts, it’s your only option. The advantage? The Supreme Court can award you interest on the unpaid amount going back to when the payment was due. They can also make the losing party pay your legal costs if you win. Working with HS Law means you’ve got someone who understands how the court system works and can present your case properly.
Enforce Your Judgment
Winning in court feels great until you realize the client still isn’t paying. That’s when enforcement comes in. BC law gives you several tools to actually collect the money you’re owed, and a Coquitlam business litigation lawyer can tell you which one makes sense based on what assets your debtor has.
Garnishment lets the court order the client’s employer or bank to send money directly to you. Seizure and sale means a bailiff can take and sell their property or business assets. An examination hearing forces the client to show up in court and disclose their complete financial situation under oath. Registration against property turns your judgment into a lien on any real estate they own, so they can’t sell without paying you first. Each method has its own requirements and costs. Some work better than others depending on your specific situation.
Know The Limitation Period
You’ve got two years. That’s how long you have from the date payment was due to file a lawsuit in BC. Miss that deadline and you lose your legal right to collect through the courts. Gone. This isn’t something you can fix later, so waiting around hoping your client will eventually do the right thing can backfire badly. Don’t let unpaid invoices pile up. The longer you wait, the harder collection becomes and the closer you get to losing your right to sue entirely.
Protect Your Business Going Forward
Prevention beats collection every single time. Start requiring deposits before you begin work, especially with new clients. Send invoices the moment the work is done, not weeks later. Follow up immediately when payments run late. And make sure your contracts have crystal clear payment terms, because vague language makes enforcement nearly impossible if you end up in court. Getting paid shouldn’t require lawyers and court dates, but when it does, you need to know what options you have and how the system works. If you’re dealing with a client who won’t pay what they owe, understanding the legal process helps you decide how far you’re willing to go to collect.
