Getting paid: collecting unpaid invoices in Alberta

A good share of the litigation files that come through our office start with the same thing: an invoice that has gone 60, 90, 180 days unpaid. The client has sent reminders, called, been promised a cheque that never came, and is now wondering whether chasing the money is worth what it will cost.

Usually it is, provided you move early and pick the right route. Here is how I walk clients through it.

Start with your own file

Before I send anything, I want to know what the client can prove. Is there a signed contract, a purchase order, a quote accepted by email? Was the work finished or the goods delivered, and is there a record of it? Were the invoices sent with clear payment terms, and does the contract allow interest on late accounts?

None of this needs to be perfect. Plenty of valid claims rest on a string of emails and a delivery slip. But the strength of your paper trail decides how hard you can push and how quickly the other side will take you seriously.

I also look at who actually owes the money. If you contracted with a numbered company, check whether anyone signed a personal guarantee. A guarantee can turn an empty corporate shell into a person with a house and a bank account.

Watch the clock

In Alberta, most claims for unpaid debts must be started within two years of when you knew, or ought to have known, that you had a claim. That deadline comes up faster than people expect, particularly when months have gone by on promises of payment. Once it passes, a perfectly good debt can become unrecoverable.

Contractors and suppliers on construction projects have a much shorter window for another remedy. A builders’ lien under Alberta’s Prompt Payment and Construction Lien Act must be registered within a strict deadline, generally 60 days, and 90 days for some work such as oil and gas sites. A lien gives you security against the property itself, which is often far more valuable than a judgment against a contractor that may not be around in a year. If you are owed money on a project, call a lawyer before those days run out.

The demand letter

A demand letter from a lawyer is the cheapest effective step, and in many cases it is the only one needed. It sets out what is owed and why, gives a firm deadline, and makes clear what happens next if the deadline passes. Debtors who have ignored your emails for months often find the money once a lawyer is involved.

A good demand letter is not a threat. It is a clear, accurate statement of your position that a judge could read later without it embarrassing you. That matters, because if the matter goes further, the letter becomes part of the record.

Choosing the right court

If the debt is $100,000 or less, the claim can usually go to the Civil Division of the Alberta Court of Justice. It is faster, cheaper and less formal than the Court of King’s Bench, and many businesses can recover their money there without a long fight.

Larger claims go to the Court of King’s Bench. The process is more involved, but the court also has more tools, and costs awards can be more meaningful.

In either court, a debtor who is served and does not respond can face default judgment. A surprising number of collection files end there: the debtor has no defence, knows it, and does nothing until a judgment is entered against them.

Judgment is not the same as payment

This is the part that catches business owners off guard. A judgment tells the debtor they owe you. It does not put money in your account. If they still will not pay, you move to enforcement under Alberta’s Civil Enforcement Act.

The first step is usually to register a writ of enforcement. Registered at the Personal Property Registry, it attaches to the debtor’s vehicles, equipment and other personal property. Registered at Land Titles, it attaches to land they own, which means they cannot sell or refinance without dealing with you. From there you can garnish bank accounts, wages or money owed to the debtor by its own customers, and, where it makes sense, have a civil enforcement agency seize and sell assets.

Before you sue, it is worth asking whether there will be anything to collect from at the end. Searches of the corporate registry, the Personal Property Registry and Land Titles can tell you a great deal about a debtor’s assets, and I prefer to know that before a client spends money on litigation.

When to settle

Not every file needs to go to judgment. A structured payment plan, properly documented, with a consent judgment held in reserve if the debtor defaults, can recover more money faster than a contested lawsuit. The goal is getting paid, not winning an argument.

Talk to us early

The single biggest mistake I see is waiting. Every month that passes gives the debtor more time to move assets, pay other creditors first, or disappear. If an invoice is past due and the promises have stopped meaning anything, it is time to get advice.

This article is general information about Alberta law as of October 2026. It is not legal or tax advice, and reading it does not create a lawyer–client relationship. Every matter is different, so please get advice on your own situation.