Got a Statement of Claim in Canada? Do This in the Next 20 Days

Last updated: July 2026. This page covers the statement of claim process under Canadian civil procedure rules. Response deadlines are set by provincial rules of court and do not change unless your province amends its legislation.

A statement of claim is the document that starts a civil lawsuit in Canada. If you have been served one for a debt, a creditor — typically a bank, credit card issuer, or debt buyer — has filed a legal action against you in provincial court. You have a fixed window to respond before a default judgment is entered against you automatically. In Ontario, that window is 20 days. In Alberta it is 20 days. In British Columbia it is 21 days. After that deadline passes, the creditor can obtain a judgment without any further hearing and immediately pursue enforcement: wage garnishment, bank account seizure, or liens on property.

Quick answer: You have 20–21 days to respond to a statement of claim in most provinces. If you cannot pay the debt, filing a consumer proposal under the Bankruptcy and Insolvency Act (BIA) triggers a legal stay of proceedings under s. 69.3 that stops the lawsuit — even one already in progress. Contact a Licensed Insolvency Trustee today if the debt is one you cannot realistically pay.

How Long Do You Have to Respond to a Statement of Claim in Canada?

Response deadlines are set by provincial rules of court, not by the creditor or collection agency. The table below covers the provinces where most Canadian debt lawsuits are filed.

The clock starts from the date of service, not the date the claim was filed. If you were served on July 2, your deadline in Ontario falls on July 22. Weekends and statutory holidays do not pause the deadline.

What Happens If You Do Nothing After Being Served?

Missing the response deadline is the single worst outcome in a debt lawsuit. When no Statement of Defence is filed, the creditor applies for a default judgment — a court order saying you owe the amount claimed. In Ontario, default judgments are governed by Rule 19.01 of the Rules of Civil Procedure and are routinely granted without any hearing if the deadlines are missed.

Once a creditor holds a default judgment, they have three immediate enforcement options:

In Ontario, a creditor with a judgment can garnish up to 20% of net wages under the Wages Act, R.S.O. 1990. In Alberta, up to 50% of net wages above a minimum exemption is available to judgment creditors under the Civil Enforcement Act. These percentages apply per payroll period. They do not require further court approval once the judgment exists.

What a Consumer Proposal Does to a Lawsuit

A consumer proposal filed under Part III, Division II of the Bankruptcy and Insolvency Act (BIA) triggers an automatic stay of proceedings under Section 69.3. This stay stops virtually all unsecured civil actions, including lawsuits already in progress at any stage before judgment. The stay does not require a separate court motion — it takes effect the moment the Licensed Insolvency Trustee files the proposal with the Office of the Superintendent of Bankruptcy (OSB).

In practice: if you receive a statement of claim on Monday and your LIT files a consumer proposal on Tuesday, the lawsuit is legally stopped as of Tuesday. The creditor cannot proceed to a default judgment hearing.

What a consumer proposal also does:

• Reduces the total amount of unsecured debt you repay — typically to a fraction of the balance
• Consolidates all unsecured debts into a single monthly payment over up to 5 years
• Stops collection calls and wage garnishment that may already be underway
• Appears on your credit bureau as an R7 rating for 3 years after completion (versus R9 on a default judgment)

According to the Office of the Superintendent of Bankruptcy’s 2025 data, 140,457 Canadians filed consumer insolvency in 2025, with 78% choosing consumer proposals over bankruptcy. The consumer proposal acceptance rate in Canada is approximately 97% when filed through an LIT, according to OSB statistical reporting.

Is This Debt Within the Limitation Period?

A statement of claim can only be filed while the debt is within the limitation period. Most provinces use 2 years from the date of last payment or last written acknowledgment of the debt.

If the debt is older than the limitation period and you made no payments and sent no written acknowledgment, you have a defence — but you must file it. Ignoring the claim still results in a default judgment even if the debt is technically statute-barred. You must show up to raise the limitation period as a defence.

The Financial Consumer Agency of Canada (FCAC) notes that making even a small payment on an old debt resets the limitation clock in most provinces. If you have not paid or acknowledged the debt in writing within the applicable period, do not make a payment before speaking to a lawyer or LIT.

What a Statement of Claim Looks Like

A statement of claim issued under Ontario’s Rules of Civil Procedure will be titled “Statement of Claim” and will include:

• The name of the court and the court file number
• The plaintiff (the creditor or debt buyer suing you)
• The defendant (you)
• The amount claimed, often including interest, legal fees, and court costs
• A space showing the date it was issued and the date it was served

Debt buyers — companies like Portfolio Recovery Associates or Encore Capital operating under Canadian names — frequently purchase old credit card portfolios from major banks (RBC, TD, Scotiabank, BMO, CIBC) and issue statements of claim once internal collection efforts fail. The original creditor named on your credit card may not be the plaintiff on the statement of claim. That is normal. The debt buyer acquired the legal right to collect when they purchased the portfolio.

Your Options When You Are Served

A consumer proposal through a Licensed Insolvency Trustee is the most commonly chosen structured path when a statement of claim reflects a larger debt problem. Hoyes, Michalos & Associates, one of Canada’s largest LIT firms, notes that many clients contact them only after receiving a statement of claim — which means the stay of proceedings is the first thing that gets filed, before any other negotiation begins.

The Right Move if You Cannot Pay

If you genuinely cannot pay the amount on the statement of claim, the 20-day window is not time to agonize — it is time to act. Here is the sequence:

1. Confirm the service date — check the endorsement or affidavit of service to know exactly when your clock started
2. Confirm the amount claimed and the creditor — verify whether the plaintiff is the original creditor or a debt buyer
3. Contact a Licensed Insolvency Trustee — LITs are federally licensed by the OSB and are the only professionals authorized to file a consumer proposal or bankruptcy under the BIA. The initial consultation is free.
4. Do not make a payment — if the debt may be statute-barred, payment restarts the limitation period
5. Do not ignore the claim — ignoring it does not stop the lawsuit

The stay of proceedings under Section 69.3 of the BIA exists precisely for this situation. It is the legal mechanism that removes the court action from the table while you restructure the debt. It is not a loophole — it is the designed legislative response to exactly this scenario.