Debt recovery in Canada

Navigate Canada's dual legal system — common law in nine provinces and civil law in Québec — with bilingual expertise from Toronto and Montréal.

CANADA. Fourteen apologies. Zero dollars. Meanwhile, the invoice got snowed in. A bilingual collector. French for Montréal, English for Toronto. Paid. No apology needed.

Canada presents international creditors with a jurisdiction that is reassuringly familiar in its legal principles and occasionally surprising in its procedural complexity. The common law system governing nine provinces will feel natural to creditors accustomed to English or American legal frameworks. The civil law system governing Québec — derived from French civil law and codified in the Civil Code of Québec — adds a layer of complexity that is manageable but cannot be ignored. And the federal-provincial division of powers means that limitation periods, court procedures, and enforcement mechanisms vary by province in ways that matter commercially.

The starting point for commercial debt recovery in Canada is almost always the demand letter — a formal communication that establishes the debt, sets a deadline for payment, and outlines the legal consequences of non-payment. In Québec, this letter has a specific legal name and function: the Mise en demeure, which is a formal prerequisite to most legal proceedings. In common law provinces, the demand letter serves the same practical purpose without the same formal requirement. Either way, a well-drafted demand letter from a collection agency or lawyer resolves approximately 40-50% of Canadian commercial debts without court involvement.