Ontario Small Claims Court now hears claims up to $50,000 (raised in October 2025). You start with a Plaintiff's Claim (Form 7A); this guide covers filing online, serving the borrower, the settlement conference, the evidence that proves a family loan, and the two-year limitation clock.
Ontario just made Small Claims Court more useful for anyone owed money by family or a friend: on October 1, 2025 the limit jumped to $50,000. That means larger loans that once forced you into a slower, costlier court now fit the streamlined process — one you can run yourself with a single form. Here's how recovering an unpaid loan in Ontario actually works under the new limit.
Ontario raised its Small Claims Court limit to $50,000 on October 1, 2025 — so larger family loans that used to be stuck in a higher court now fit the simpler process. You file a Plaintiff's Claim (Form 7A), and you can run the whole thing yourself or hire a licensed paralegal.
Is your loan within the new $50,000 limit?
The first question is purely arithmetic: does the amount you're owed, including interest, sit at or below $50,000? If it does, Ontario's Small Claims Court — a branch of the Superior Court of Justice — is the right forum. If your loan is larger, you have a choice: pursue it through the Superior Court's simplified procedure, or voluntarily give up the amount over $50,000 so you can stay in Small Claims Court, where the process is faster and cheaper. For most family loans, the $50,000 ceiling is comfortably high enough.
Send a demand letter first
Before filing, put your demand in writing: the amount, when it was lent, and a firm deadline to pay before you commence a claim. In a family context this often resolves things on its own, and either way it becomes an exhibit — evidence you gave the borrower a clear chance to settle.
Filing the Plaintiff's Claim (Form 7A)
You start the case with Form 7A, filed through Ontario's online Small Claims Court filing portal. You set out who owes you, how much, and the facts: the loan, the terms, and what went unpaid. Attach what proves the money moved and that it was a loan — e-transfer records, texts, any signed agreement. Pay the filing fee, and the court issues your claim for service on the defendant.
Paralegals: Ontario's affordable middle option
Ontario is one of the few provinces where licensed paralegals can represent you in court. If your loan is contested or the borrower has hired help, a paralegal can level the field at a fraction of a lawyer's cost. For a straightforward, well-documented loan, many people simply represent themselves.
Settlement conference, then trial
Ontario requires a settlement conference before trial — an informal meeting where a judge explores whether the case can resolve. Many loan claims settle here, especially when your paper trail is strong. If it doesn't settle, the matter proceeds to a trial where you present your evidence and the judge decides.
Getting paid: enforcement
A judgment isn't a cheque. If the borrower still doesn't pay, Ontario gives you enforcement tools — garnishing wages or bank accounts, or a writ of seizure and sale against property. An examination hearing can compel the debtor to disclose their assets and income so you know which tool to use.
Common questions
How much can I sue for in Ontario Small Claims Court?
As of October 1, 2025 the limit is $50,000, up from $35,000. If your loan plus interest is at or under $50,000, Small Claims Court is your venue. If it's more, you can either sue in the Superior Court's higher procedures or abandon the excess to stay within the $50,000 cap and keep the simpler process.
Do I need a lawyer, or can a paralegal help?
Neither is required, but Ontario is distinctive in licensing paralegals through the Law Society of Ontario to represent you in Small Claims Court. A paralegal is usually far cheaper than a lawyer and is a popular middle option for a contested loan.
How long do I have to sue on an unpaid loan in Ontario?
Generally two years under the Limitation Act, running from when repayment was due or last acknowledged. A written acknowledgement or a partial payment can restart that two-year clock.
The document that wins these cases
A signed loan agreement is the cleanest proof a court can ask for. LendRight builds one both people e-sign in minutes — so if you ever file, your strongest evidence is already in hand. Free to draft.
Create my loan agreement →General information for Ontario, not legal advice; LendRight is not a law firm. Court limits, fees and limitation rules change — confirm the current Small Claims Court limit and procedure with the Superior Court of Justice before filing.
We write plain-language guides on lending between family and friends in Canada, reviewed against current provincial and CRA rules. LendRight is not a law firm — this is general information, not legal advice.