Commercial debt recovery in Quebec

Debt recovery

The question is not
whether you are right.

In a recovery file, being right is not enough. The only question that matters is whether the debtor has seizable assets, and whether you will be the first to reach them.

We therefore begin with a solvency check: enterprise register, land register, register of personal and movable real rights, review of security already published. That search shapes the strategy and sometimes the decision to do nothing.

Only then come the proceedings: demand letter, application, judgment, then enforcement by seizure. At every stage the objective stays the same, to be paid rather than to win.

These remedies are exercised under the Civil Code of Québec, which defines the rights at issue, and the Code of Civil Procedure, which organizes how they are pursued before the courts.

What we do

From unpaid invoice
to money in the account.

Solvency check

Assets, immovables, security already published, other creditors, judicial history. What a claim is really worth before you invest in it.

Demand letter

A demand letter resolves a significant share of recovery files, especially where it shows the creditor understands the debtor’s situation.

Court application

Court of Québec for most commercial claims, Superior Court above the applicable threshold. Small Claims Division for amounts that qualify.

Conservatory measures

Seizure before judgment where the claim is in jeopardy, legal hypothec, injunction. These measures prevent assets from disappearing during the proceedings.

Enforcing the judgment

Seizure of bank accounts, seizure of movable property, seizure in the hands of a third party, sale under judicial authority. This is where the real result is decided.

Debtor insolvency

Bankruptcy, proposal, notice of intention. Your rights change in nature and the deadlines become strict: see our note on client bankruptcy.

Services

Solvency checks
Demand letters for payment
Court proceedings
Seizures

Frequently asked questions

What we are asked most.

Is it worth suing for a small debt?

It depends on the amount, on solvency and on the cost of the exercise. The Small Claims Division allows modest amounts to be recovered without a lawyer, though a business must meet particular conditions as to its number of employees.

How long before I am paid?

A demand letter produces a result within weeks where it produces one at all. Full proceedings through to enforcement generally take six months to two years, depending on the court and the debtor’s resistance.

What if the debtor transfers assets away?

An action in inopposability allows a transfer made in fraud of a creditor’s rights to be declared unenforceable against that creditor. The deadlines are short and the evidence demanding, which makes prompt action decisive.

Can interest and costs be added?

Interest runs from the demand letter, at the legal rate or the rate agreed in the contract. Recovery costs are recoverable only where the contract expressly provides for them, which is worth adding to your terms of sale.

Two texts to read before acting: the demand letter, and your client goes bankrupt, the remedies you have left, which covers the most frequent scenario in recovery files.