If someone owes you money under a loan agreement—verbal or written—you may be entitled to commence legal proceedings to recover the debt. Ontario law recognizes a creditor’s right to be repaid and provides judicial remedies through the Small Claims Court or Superior Court of Justice, depending on the amount and nature of the loan.

Common examples of unpaid loan disputes we handle include:

• Personal loans to friends, family, or former partners

• Business loans and unpaid shareholder advances

• Loans with or without written contracts

• Loans involving bounced cheques or missed repayment terms

• Loans related to construction, equipment, or service agreements

We carefully assess your case to determine the best course of action—prioritizing efficiency, cost-effectiveness, and the likelihood of full recovery.

When lending money—whether to a business, employee, contractor, or individual—a well-drafted promissory note is essential to protect your legal interests. At Haider Khan Legal, we prepare enforceable, clearly worded loan instruments that define the terms of repayment, interest, default remedies, and acceleration clauses.

However, drafting a promissory note is only the first step. For added protection, especially for larger sums or business-related loans, we advise securing the loan using collateral and registering that interest under Ontario’s Personal Property Security Act (PPSA).

Our services include:

• Drafting customized promissory notes and loan agreements

• Advising on and documenting collateral security, including equipment, inventory, vehicles, or receivables

• Preparing and filing a PPSA registration to perfect your security interest

• Enforcing secured debts through seizure and sale of collateral if the borrower defaults

Registering a PPSA security interest can turn an unsecured loan into a secured debt, giving you priority over other creditors in the event of default or insolvency. Whether you're lending money to a business partner or advancing funds to a family member, we ensure your loan is legally enforceable—and if necessary, enforceable against specific property.

Winning your case in court is only half the battle. Once you obtain a judgment confirming the debtor’s liability, enforcement becomes the next step.

We assist with:

• Wage garnishments

• Seizure and sale of personal or business assets

• Writs of seizure and sale for real property

• Bank account garnishments

• Debtor examinations under oath

Each case requires a tailored enforcement strategy based on the debtor’s assets, employment, and financial circumstances. We help you pursue your recovery while minimizing costs and procedural delays.

Depending on the amount owed, your case may fall under the jurisdiction of the Small Claims Court or the Superior Court of Justice. Here's how they compare:

• Small Claims Court

  • Monetary Limit: Up to $35,000

  • Simpler and faster; designed for individuals and small businesses

  • Cost: Lower legal fees and court costs

• Superior Court of Justice

  • Monetary Threshold: Claims exceeding $35,000

  • Large loan defaults, business disputes, breach of shareholder agreements, secured debt recovery

  • Available relief includes injunctions, declarations, and damages beyond monetary recovery.