Form 20L – Notice of Default of Payment

Jurisdiction: Country: Canada | Province or State: Ontario

What is a Form 20L – Notice of Default of Payment?

Form 20L is a Small Claims Court notice you use after a debtor misses a payment under a court-approved payment plan or filed settlement. It tells the debtor they are in default and confirms you may proceed with the enforcement of the unpaid balance. It connects a missed payment to the enforcement rights in your order or terms of settlement.

You typically use this form if you already have an order for money. That order might be from a trial, a judgment by consent, or a settlement filed with the court. Many orders allow the debtor to pay by set installments. While the debtor follows the plan, most enforcement steps pause. If the debtor misses a payment, Form 20L documents the default and lifts the pause.

Who typically uses this form?

Judgment creditors in Small Claims Court. That includes plaintiffs owed on invoices, contractors, landlords seeking post-tenancy arrears, lenders on small loans, or defendants with successful counterclaims. You can be self-represented or represented by a licensed paralegal or lawyer. Debtors do not use this form; they receive it.

Why would you need this form?

Because a payment plan tied to a court order often includes a stay on enforcement. You cannot garnish or issue a writ while the debtor pays as ordered. Once the debtor defaults, you must give formal notice of that default to reactivate enforcement. Form 20L is the tool the court expects you to use. It keeps the court file accurate and shows you respected the payment terms before enforcing.

Typical usage scenarios

• You won judgment for $18,000. The court permitted the debtor to pay $300 each month. The debtor stops paying after three months. You serve and file Form 20L to confirm default and proceed with garnishment.
• You signed Terms of Settlement at a settlement conference. The debtor agreed to pay $5,000 in five monthly payments. The settlement says enforcement pauses while payments are current. The debtor misses payment three. You deliver Form 20L and then enforce the full balance.
• The debtor brought a motion and obtained an order to pay by installments. There is a clear schedule in order. The debtor pays late and then stops. You use Form 20L to notify default and take the next steps.

The form does not replace your original order. It works with your order. It helps you move from “waiting for payments” to “enforcing the judgment” in a way the court recognizes.

When Would You Use a Form 20L – Notice of Default of Payment?

You use Form 20L when the debtor misses a scheduled payment that is part of a court-recognized plan. This plan can be in a judgment, an endorsement, a consent, or filed terms of settlement. If there is no payment plan, you do not need this form to enforce. You would enforce your order directly. Form 20L matters only when a plan paused enforcement.

Practical examples help make this clear. You are a business owner who sued for unpaid invoices. The debtor asked to pay by installments. The court granted an order allowing $400 due on the first day of each month. You cannot garnish wages while those payments arrive on time. In month five, nothing arrives. You wait a reasonable time per the order or settlement. Nothing arrives. Form 20L tells the debtor the plan is now in default. It also puts the court on notice that you can enforce.

Another example: You are a contractor. You settled on terms filed with the court. The debtor agreed to bi-weekly payments. The settlement says missing a payment allows you to enforce the full balance. The debtor misses two payments. You issue Form 20L to confirm default. You then choose an enforcement route that fits the debtor’s situation.

Landlords sometimes use Small Claims Court for money claims after a tenancy ends. If the former tenant agreed to pay arrears by installments and defaulted, Form 20L is the next step. It is the same for lenders, repair shops, trades, or professionals who extended time to pay through a court-recognized plan. The common thread is a money order with timing terms that hold enforcement in place until default.

You do not use Form 20L for non-monetary orders. You also do not use it when the debtor is paying as scheduled. If a payment plan expired and the full balance became due, you can enforce without Form 20L. The form focuses on payment plan defaults, not expired plans or new disputes.

Legal Characteristics of the Form 20L – Notice of Default of Payment

Form 20L is an official Small Claims Court form. It is not a judgment or a motion. It does not create new rights. It documents that a condition in your existing order has occurred: the debtor missed a payment. The order or settlement usually states that enforcement pauses while payments stay current. It also usually states that, on default, enforcement can resume for the unpaid balance. Form 20L connects the missed payment to that enforcement clause.

Is it legally binding? The notice itself is not an order. But it is binding in the sense that it triggers consequences written into an order the court has already made or accepted. The enforceability does not come from the notice. It comes from your underlying order and the Small Claims Court Rules. The notice demonstrates compliance with the process that allows you to enforce.

What ensures enforceability? Several points work together:

• You already have a Small Claims Court order for money, or filed terms treated as an order.
• That order sets a payment schedule or terms of payment, or includes a stay pending payment.
• A payment is missed, and any waiting or grace period in the order has passed.
• You serve the debtor with Form 20L and file it with proof of service in the court file.

Once those steps are complete, the stay on enforcement attached to the payment plan ends. You can then pursue garnishment, a writ of seizure and sale, or other enforcement tools available in Small Claims Court. If the debtor challenges the default, the court can review it. If your notice is accurate and you followed the terms, the court will generally allow enforcement to proceed.

General legal considerations:

• Accuracy matters. The amounts, dates, and interest calculations must be correct. The court can penalize misuse with costs.
• Good faith matters. Do not send a default notice if the debtor paid as agreed or within a grace period. If a payment arrives late but the order allows a cure, respect it.
• Interest accrues. Post-judgment interest usually applies as stated in the order. If the order does not say, standard rates may apply. Calculate interest to the date of the notice, and keep updating it until paid.
• Settlement clauses control. Many settlements include a clear default clause. Follow the clause. Use the 20L to inform the debtor and the court that you are invoking that clause.
• Notice and service rules apply. Proper service is essential. If you serve incorrectly, enforcement can be delayed or set aside.

Think of Form 20L as a formal switch. It moves your case from “installments active” to “enforcement active” under a system the court recognizes and tracks.

How to Fill Out a Form 20L – Notice of Default of Payment

Follow these steps to complete, serve, and file the form correctly. Keep your writing clear and your numbers exact. Use the same names and court file number as your order.

1) Gather your documents and confirm default.

• Get the Small Claims Court order or filed terms of settlement. Confirm it sets out payment dates and amounts.
• Review the payment history. Note the missed payment date and amount. Check if any grace period applies under the order.
• Calculate the unpaid principal balance. Add any post-judgment interest to date. Confirm your numbers twice.

2) Complete the court file header.

• Enter the court file number exactly as shown on your order.
• Enter the court location (the Small Claims Court office where the case is filed).
• Use the exact party names as shown in the style of cause. Include all plaintiffs and defendants. If there is a counterclaim with a different creditor, make that clear by role.

3) Identify the order and terms of payment.

• State the date of the judgment, order, or filed settlement.
• Quote or summarize the payment terms, using the exact amounts and due dates. For example: “$250 due on the 1st day of each month starting May 1, 2024.”
• If the order mentions a stay of enforcement while payments are current, note that. If the settlement states that default permits enforcement of the full balance, note that.

4) Describe the default.

• State what payment was missed, the due date, and the amount. Keep it specific and factual.
• If any part payment was made, record it. State the shortfall. For example: “$250 due May 1, 2024. $100 paid May 8, 2024. $150 unpaid.”
• State that the debtor is in default of the payment terms. Use plain language. Avoid legal jargon.

5) Calculate the balance now due.

• Start with the unpaid principal under the order.
• Subtract any payments received.
• Add post-judgment interest to today’s date, as allowed by the order.
• If your order or settlement allows costs on default, list them. Keep costs reasonable and explain the basis.
• Present a clear total outstanding. For example: “Total outstanding as of June 15, 2024: $4,735.62.”

6) Include the standard notice language.

• The form will contain a notice section. It informs the debtor that they are in default and that you may enforce the judgment.
• Do not alter the standard language. Fill in blanks only. Insert amounts and dates where required.

7) Add your contact and representation details.

• Print your full name, address, email, and phone number. If a lawyer or paralegal represents you, include their details and firm name.
• Identify your role (plaintiff, defendant by counterclaim, or assignee) so the court can match roles to the order.

8) Sign and date the form.

• Sign where indicated. If a representative signs, they should note their capacity.
• Date the form. This date should match or precede the date of service.

9) Prepare proof of service.

• Choose a permitted method of service. Regular service methods usually apply for this notice. Consider mail, courier, or email if the debtor consented to email service in this case.
• Serve the debtor at their last known address or the address listed on the court file. If the order lists a service address, use it.
• Prepare an affidavit of service. It should identify the document served, the date, the method, the address or email used, and who was served. Attach any delivery confirmations or receipts.

10) File the notice with the court.

• File the completed Form 20L with the Small Claims Court office where your case is filed.
• File your affidavit of service with the notice. Attach a copy of the order or filed terms of settlement if helpful for clarity.
• Keep stamped copies for your records. Keep a service package with proofs handy for any challenge.

11) Wait any stated cure period in your order, if applicable.

• Some orders or settlements include a grace period before enforcement. If one exists, respect it.
• If no grace period exists in the order, enforcement can usually proceed once the notice is served and filed.

12) Choose your enforcement step and proceed.

• Consider the debtor’s situation. If the debtor is employed, wage garnishment may be effective. If the debtor has funds in a bank, a garnishment against the bank may work. If the debtor owns real property or valuable personal property, a writ of seizure and sale may help.
• You can also schedule an examination hearing to ask about the debtor’s income and assets. That helps you pick an enforcement path with better odds.
• Each enforcement step has its own form and process. Ensure your amounts match the totals on your notice.

13) Manage payments after default.

• If the debtor pays after receiving the notice, record the payment. Update your balance and interest.
• If the debtor cures the default within a grace period set by the order, respect the cure if the order requires it.
• If you agree to a new plan, put it in writing. If you want it enforced by the court, file the new consent so it becomes part of the case record.

14) Avoid common mistakes.

• Do not serve the wrong party. Serve the judgment debtor, not their employer or bank.
• Do not inflate interest or costs. Use the rate and cost terms in your order.
• Do not skip the affidavit of service. Without it, the court file does not confirm proper notice.
• Do not rely on emails unless the debtor consented or the court ordered email service in this case.

15) Keep your file audit-ready.

• Keep a ledger showing principal, interest, costs, and all payments.
• Keep copies of the order, the Form 20L, the affidavit of service, and proof of delivery.
• Keep notes of phone calls or correspondence about payments and default.

Real-world example: You hold a judgment for $9,600 plus post-judgment interest. The debtor was to pay $200 on the 15th of each month. Payments arrived for four months. Then nothing in month five. Your order has no grace period. You serve and file Form 20L after confirming the missed payment and interest to date. You then issue a wage garnishment against the debtor’s employer. The employer remits funds every pay. You track payments, update interest, and file a memo of garnishment payments with the court when needed. If the debtor resumes voluntary payments, you adjust your enforcement plan to avoid over-collection.

Another example: You settled for $4,000 payable $1,000 each month. The settlement states that on default you may enforce the full balance. Month two is missed. You deliver Form 20L and file it. You then schedule an examination hearing to get details on the debtor’s bank and employer. With that information, you select the enforcement method most likely to recover funds quickly.

In short, Form 20L is a simple but important step. It confirms the debtor missed a payment under a court-backed plan. It clears the way for you to enforce the unpaid balance. Fill it carefully, serve it properly, and file it promptly so you can act with confidence on your judgment.

Legal Terms You Might Encounter

A judgment creditor is the person or business owed money under a Small Claims Court order or settlement. You complete Form 20L as the judgment creditor when payments stop.

A judgment debtor is the person or business ordered to pay. You serve Form 20L on each judgment debtor named in the order or settlement.

Default of payment means a missed or late payment under the order or agreed terms. Form 20L records that default and states the balance now owed.

An instalment order is a court order that sets a payment schedule. If the debtor misses an instalment, you use Form 20L to confirm the default.

Terms of payment are any agreed or ordered payment deadlines, whether a lump sum or instalments. The form shows which term the debtor missed and when.

Enforcement means using court tools to collect what is owed. Form 20L is often a first step before enforcement begins after a default.

A writ of seizure and sale is a court document that allows the sheriff to seize and sell the debtor’s non-exempt property. You may move toward a writ after giving notice of default.

Garnishment is a process to collect money from a debtor’s wages or bank account. The Notice of Default can support a garnishment if the debtor does not fix the default.

Interest on judgment is the extra amount that accrues on the unpaid balance. You show how you calculated interest on Form 20L so the debtor sees the precise total.

An affidavit of service is a sworn statement confirming how and when you served the Notice. Keep this proof. You may need it if enforcement is challenged.

FAQs

Do you have to serve Form 20L on the debtor?

Yes. Serve each judgment debtor with a clear, complete copy. Use a method allowed by the court rules or by any consent for service you have. Keep proof of service. You may need it for enforcement.

Do you need to file Form 20L with the court?

Often, you should file the completed form and your proof of service in the court file. Some enforcement steps expect the court record to show the default. Filing also creates a dated paper trail.

Do you have to wait after sending the Notice before enforcing?

You should give the debtor a reasonable, stated time to fix the default. Many creditors allow a short, clear deadline. This shows you acted fairly and gives the debtor a chance to pay before enforcement.

Do you need Form 20L if the order required a single lump-sum payment?

It still helps. If the debtor missed the lump-sum deadline, the Notice records the default and the total now due. It prepares the ground for enforcement and reduces disputes about timing and amounts.

Do you include interest and costs on the Notice?

Yes. State the judgment principal, interest to date, any allowed costs, less payments received. Show your interest rate and dates used. Round to two decimals. Accuracy avoids objections later.

Do you have to send the Notice to each co-debtor?

Yes. Serve each judgment debtor listed on the order. If payments came from one debtor only, still serve all debtors. Joint debtors can be responsible for the full balance unless the order says otherwise.

Do you need to attach proof of the missed payment?

You usually don’t attach proof, but you should keep it. Bank records, returned payments, and emails are useful. If you refer to a specific invoice or schedule, you can attach it for clarity.

Do you send a new Notice if the debtor fixes the default and later misses again?

Yes. Send a fresh Notice for the new default with updated figures. Each default should be documented. This keeps your records clean and your enforcement support current.

Checklist: Before, During, and After

Before signing

• Court file number and courthouse location from your order or settlement.
• Exact names of the judgment creditor and judgment debtor(s) as on the order.
• Current addresses, emails, and phone numbers for service.
• A copy of the judgment or terms of payment (order or settlement).
• Payment ledger showing dates, amounts paid, and missed payments.
• Interest rate and start date from the judgment.
• Any allowed costs you intend to claim (e.g., service fees).
• The total outstanding balance as of today’s date.
• Any written payment plan, extensions, or variations, with dates.
• Your service plan (method, who will serve, and when).

During signing

• Verify the debtor’s name and address match the court order.
• Confirm the default date and the payment term that was missed.
• Check that principal, interest, costs, credits, and total are correct.
• Specify the date through which interest is calculated.
• Include your contact details so the debtor can reach you to pay.
• Use clear, plain wording about what must be paid and by when.
• Sign and date the form. Print your name clearly.
• Prepare enough copies for each debtor and for your records.

After signing

• Make a clean copy for each debtor and one for your file.
• Serve each debtor using an allowed method. Be consistent.
• Complete an affidavit of service for each debtor served.
• If required, file Form 20L and your proof of service with the court.
• Calendar your follow-up date tied to the deadline you gave.
• Track any payments received after service. Update your ledger.
• If the debtor pays in full, note “satisfied” in your records.
• If not paid, prepare the next enforcement step and needed forms.
• Store all documents together: order, ledger, Notice, and service proof.

Common Mistakes to Avoid

Don’t misstate the amount owing. Errors in principal, interest, or credits invite disputes. You risk delays or a challenge to your enforcement.

Don’t serve the wrong address or only one of multiple debtors. Improper service can undermine the Notice. The debtor may argue they had no chance to fix the default.

Don’t omit the court file number or courthouse. Missing identifiers make your Notice hard to match to the case. The court or debtor may ignore or question it.

Don’t skip the interest calculation details. Without rate and dates, totals look inflated. The debtor is more likely to contest the figures.

Don’t fail to keep proof of service. Without it, some enforcement steps stall. You may need to re-serve or re-start the process, costing time and money.

What to Do After Filling Out the Form

Serve the Notice promptly. Use a method the court accepts and keep proof. Clear, timely service reduces arguments about what happened and when.

Allow a short, specific cure period. Tell the debtor exactly how much to pay and where to send payment. Include your contact details for questions.

Monitor for payments. If the debtor pays in full, close your file and update your ledger. If they make a partial payment, send a receipt and update the balance.

Decide on next steps if no payment arrives. Consider enforcement options such as a writ or garnishment. Check what each step requires, including filing the Notice and proof of service.

File where appropriate. Placing the Notice and affidavit of service in the court file supports your enforcement. It shows the debtor had fair notice.

Respond to debtor outreach. If the debtor proposes a concrete plan and you accept it, confirm the plan in writing. Keep records of any new schedule or conditions.

Correct any errors quickly. If you spot a mistake in names, amounts, or dates, prepare a corrected Notice. Re-serve it and keep both versions with notes explaining the correction.

Coordinate with co-debtors. If there are multiple debtors, track service and responses separately. Payments from one debtor affect the shared balance. Update all parties if you choose to.

Keep a complete record. Store the order, payment ledger, Form 20L, proof of service, and all correspondence. Good records strengthen your position if the debtor challenges enforcement.

Review enforcement timing and costs. Each enforcement step has its own requirements and expenses. Budget for fees. Consider the debtor’s likely ability to pay when choosing the next step.

Close the loop when paid. When the balance is satisfied, mark the judgment as paid in your records. Notify the debtor in writing. If you filed enforcement documents, follow any required steps to show satisfaction.