Debt Collection Lawyers

Whether you are a business chasing unpaid invoices or a person being contacted by a collection agency, a debt collection lawyer can tell you where you stand and what to do next. On this page you can compare lawyers who handle debt recovery and collection disputes, see their rates and availability, and book a consultation online.

Debt collection is one part of consumer protection law. For other problems with a merchant, such as a misleading sale, a faulty product or a contract you want to cancel, see our page on consumer protection lawyers.

What a debt collection lawyer does

Debt collection has two sides, and a lawyer can help on either one:

• For creditors and businesses: reviewing the invoices and contracts behind the debt, sending a formal demand, negotiating a payment plan, suing when needed and enforcing the judgment afterwards.
• For people who owe, or are told they owe: checking whether the debt is valid and still collectable, responding to a collection agency or a lawsuit, stopping abusive collection practices and exploring realistic ways out.

Collecting unpaid invoices as a business

When a client stops paying, the first steps usually decide whether you get paid. In Quebec, the process generally looks like this:

• Gather your proof: the contract or accepted quote, the invoices, delivery or work records, and your exchanges with the client.
• Send a demand letter: a formal notice, or mise en demeure, that states what is owed and gives a deadline to pay. Many debts are settled at this stage.
• Choose the right court: smaller claims go to the small claims division of the Court of Québec; larger ones go to the Court of Québec's civil division or the Superior Court.
• Obtain and enforce a judgment: winning the case is not the same as being paid, so enforcement is often the real work.

Small claims is designed for people to present their own case, and lawyers generally cannot represent a party at the hearing. Not every business is allowed to file there, so check the Quebec government's small claims page for the current limit and eligibility rules. A lawyer can still help you prepare, or take the case to the regular courts when the amount or the stakes call for it. If the debt comes from a broken agreement, our page on contract dispute lawyers covers breach of contract in more detail.

After the judgment: seizure and garnishment

If the debtor still does not pay after a judgment, the creditor can move to forced execution. In Quebec, this is carried out by a bailiff (huissier de justice). Depending on the situation, it can include seizing and selling property, or a garnishment, where an employer or a bank is ordered to hand over part of the debtor's wages or funds. The law protects part of a person's income and some essential property from seizure, so not everything can be taken. A lawyer can tell you which measures make sense.

When a collection agency contacts you

In Quebec, collection agencies are regulated under the Act respecting the collection of certain debts. An agency must hold a permit issued by the Office de la protection du consommateur (OPC), and it must follow conduct rules when it contacts you. In general terms, a collection agent cannot:

• Harass, threaten or intimidate you, or use abusive language.
• Give false or misleading information about the debt or about what will happen if you do not pay.
• Contact you at unreasonable times or with excessive frequency.
• Discuss your debt with your employer, neighbours or family, except in the limited cases the law allows.

Creditors who collect their own debts are also bound by rules against harassment. If an agent crosses the line, you can ask in writing that communications go only through your representative, such as your lawyer, and you can file a complaint with the OPC. The OPC's page on debt collection by an agency explains the rules and your recourses, and lets you check whether an agency holds a permit.

Disputing a debt

Do not pay, or promise to pay, a debt you do not recognize just to make the calls stop. Ask the agency for written details: who the original creditor is, what the amount covers and how it was calculated. Debts can be wrong: they may include charges that are not owed, belong to someone else, already be paid or stem from identity fraud. Keep every letter and write down each call. A lawyer can review the paperwork and answer on your behalf.

Old debts and prescription

In Quebec, most debts are subject to prescription: a time limit after which the creditor can no longer successfully sue to collect, if the debtor raises it. The period depends on the type of debt and on when it became due. Be careful: acknowledging the debt or making a payment can restart the clock. A prescribed debt may also still appear on your credit file for some time. Because these rules are technical, ask a lawyer before you pay or sign anything on an old debt.

When debts become unmanageable

If you owe more than you can realistically repay, a licensed insolvency trustee is the professional authorized under federal law to handle consumer proposals and bankruptcies. Both can stop most collection efforts and lawsuits once they are filed. A lawyer can help you weigh your options first, especially if you are being sued or facing a garnishment.

When to get a lawyer

• You are owed a significant amount and your demand has been ignored.
• You won a judgment but have not been paid.
• You have been sued or served with a demand for a debt you dispute.
• A collection agent is harassing you or contacting people around you.
• A garnishment or seizure is coming and you want to know your rights.

Preparing for your consultation

Bring the contract, invoices or statements behind the debt, all letters and demand notices, a log of calls with dates, and any court documents you have received. Write down what you want: to get paid, to settle, or to make the collection stop.

Compare and book on JustiConnect

Browse the lawyers listed below, filter by location, rates and availability, and book a consultation directly. You can also search all debt collection lawyers or see debt collection lawyers in Montreal. Our guide on how to choose a lawyer in Quebec can help you decide.

Frequently asked questions

Is debt collection legal in Canada?

Yes. Creditors are allowed to collect money that is owed to them, but each province regulates how collection agencies operate. In Quebec, agencies must hold an OPC permit and respect conduct rules, and harassment is not allowed.

Can an old debt still be collected?

It depends on whether it is prescribed. Once the time limit has passed, the creditor generally cannot win a lawsuit if you raise prescription, but paying or acknowledging the debt can change that. Get advice before you respond.

Will a collection agency sue me?

The creditor, or a company that bought the debt, can take you to court. If you are served, do not ignore it: missing the deadline to respond can lead to a judgment against you, followed by seizure or garnishment.

Can I just ignore a collection agency?

Ignoring it rarely makes the debt go away. It is better to ask for written details, dispute what is wrong, and get advice on the part you actually owe.