400 - 628 Sixth Avenue New Westminster,
B.C. V3M 6Z1 Canada
Telephone: (604) 526-1805
Facsimile: (604) 526-8056
E-mail:
info@kmlawoffice.com
kinman@kmlawoffice.com
mulholland@kmlawoffice.com
Q. What can I do if I am owed money by someone?
A. If someone owes you money, you can file a law suit in Court to seek judgment for the amount owed to you. In this Province there are two levels of Trial Courts, Small Claims and Supreme Court. Presently, the Small Claims Court has authority to grant a Judgment for up to $25,000.00. For amounts in excess of that amount, you must start your action in Supreme Court.
You should be aware that legal proceedings to recover a debt must almost always be filed within 6 years of the date that the debt was incurred. If legal proceedings are not filed within that time, you may not be allowed by the Courts to recover a judgment for the monies owing to you.
Q. Do I need a lawyer to sue to recover a debt owing to me?
A. Actions brought in Small Claims Court are designed to be handled by non lawyers. However, it is wise to consult with a lawyer first, even if you think that you would like to handle a Small Claims matter yourself. A lawyer in our firm can meet with you to discuss your claim and assist you in deciding whether you would be better off being represented by legal counsel. We provide potential clients with a half hour free initial consultation to assist you in this regard.
Before you file a legal action it is very important that you name the appropriate person to be sued, and there are rules set out in the Small Claims Act which regulate in which Court Registry a Small Claims suit can be filed.
If you are owed more than $25,000.00, you will have to start your law suit in Supreme Court. Supreme Court law suits are more complex than Small Claims suits, and should be handled by a lawyer. Most lawyers will only accept such cases on an hourly fee basis. It is important to realize that the more experienced a lawyer is, the higher his or her hourly rate. However, often experienced lawyers are able to solve legal problems far more quickly than those with less experience. Therefore more experienced lawyers are often more cost effective than lawyers with less experience.
Q. If I decide to consult a lawyer about a collecting a debt owing to me, what should I bring with me to the consultation?
A. Any lawyer you consult about a potential law suit you wish to file will want to review the documents and other evidence which supports your claim. This means unpaid invoices or copies of any letters or other correspondence which acknowledges the debt. Sometimes the claim will be evidenced by a Promissory Note, a dishonoured cheque, or a Credit Application.
In addition to providing documents to support the fact that you are owed money, your lawyer will find any and all information about the debtor useful in assisting you in collecting the debt. For example, if you know where the debtor maintains a bank account, your lawyer may be able to have funds garnished from that account before you even obtain a Judgment. Similarly, after you have obtained a Judgment in your favour, any information about the debtor’s finances and assets will assist your lawyer in collecting the monies owing to you.
Q. If I am involved in the construction industry, can I file a Claim of Builders’ Lien to collect outstanding accounts? How does filing a Claim of Lien assist me in getting paid?
A. A person who supplies labour or material to a construction project can file a Claim of Builders’ Lien against the property to which that labour and material was provided. A Claim of Lien allows a person who is owed money to seek payment from the property owner as well as the entity who actually entered into the contract to pay the bill for the services or material. Very often the owner of the property is different from the entity that contracted for the labour and material. As a result, a valid Claim of Builders’ Lien almost always makes it easier to collect an outstanding account.
You should be aware that there are strict time limits governing when a Claim of Builders’ Lien can be filed. The Builders’ Lien Act states that a Claim of Lien must be filed within 45 days of substantial completion of the construction project in question.
Where a Claim of Builders’ Lien is filed in time, the property owner will very often make arrangements to pay the entire amount outstanding. If you file your Lien Claim using a lawyer, he or she will often be able to obtain full payment of your legal fees as well as payment of your account. Your lawyer will also explain to you that, unless your Claim of Lien is settled or paid within a year of the date it was filed, it will cease to have any legal effect, unless a legal action is started to enforce the same. Therefore, any Claim of Lien which is nearing its one year anniversary should be discussed with your lawyer. You should also be aware that, upon proper notice by the owner of a property, the one year time limit can be shortened to just under a month.
Filing Claims of Builders’ Liens can be a complicated process, and we think it wise to retain the services of a lawyer to ensure that it is done correctly. The cost of filing a Claim of Builders’ Lien is modest, especially when its effectiveness as a collection tool is taken into consideration.
Q. What do I need to do if I am sued for monies someone else says that I owe?
A. If you are served with any type of Court papers, you should always consult with a lawyer immediately. Your lawyer can take steps to file the appropriate documents necessary to prevent a Judgment from being entered against you. If you are sued, and you do not file the appropriate responsive documents in Court, a Default Judgment can be obtained against you. A Default Judgment is a Court Order, and can be enforced against you. You should be aware that depending on the circumstances, a Default Judgement can be obtained within 8 days of being served with Court papers. As a result, it is very important that you consult a lawyer as soon as possible.
You should also be aware, that it is possible for you to be validly served by mail in some circumstances.
Q. If I am sued for a debt or for other monetary compensation, what can a lawyer do for me?
A. The fact that you may have been sued for a debt does not mean that the monies claimed are in fact properly owing. If you are sued, you should consult a lawyer and explain the circumstances behind the law suit as you understand them. In some cases, your lawyer may be able to give you advice as to a possible legal defence for all or part of the claim. Often, a lawyer may be able to take legal steps to have another person or company either pay or contribute to paying the claim on your behalf. For example, in some cases, your lawyer may be able to assist you in getting an insurance company to pay the claim.
Even if your lawyer advises you that there is not defence to a law suit filed against you, he or she may be able to assist you in settling or resolving the claim.
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