Note: this wizard provides a general, informational summary only — not legal advice and not a guarantee of any outcome. It's designed to help you organize what you know before you send a demand letter or file a claim, not to make a final determination about your specific situation.
What this wizard actually does
Money lent between people who know each other rarely comes with the paperwork a bank loan would have. This wizard walks you through what you actually have — the amount, the approximate date, any messages or e-transfer records, and what (if anything) was agreed about repayment — and helps you organize it into a clear summary you can use to write a demand letter or, if it comes to that, prepare a claim.
It doesn't replace a full read of suing a family member or friend for money owed, which covers the practical and personal considerations in more depth — think of this as the organizing step that comes before you act on that guidance.
What You'll Need Before You Start
- The amount you lent, and whether any of it has already been repaid.
- Roughly when the loan was made, since this affects your limitation period.
- Any record of the loan — a text message, email, e-transfer confirmation, or note — even an informal one.
- What was agreed about repayment, if anything was discussed explicitly.
- The other person's current contact information, since you'll need it to send a demand letter or serve a claim later.
Using the Wizard, Step by Step
- Describe the loan — who it was to, roughly when, and the amount.
- Note any documentation you have, even informal records.
- Describe what's happened since — partial repayment, broken promises, or no response at all.
- Review the summary the wizard produces, and use it as the starting point for a demand letter or claim.
A Note on Lending to Family or Friends
Pursuing a personal loan from someone you know is legally straightforward but rarely emotionally simple. Small Claims Court doesn't distinguish between a stranger and a relative — the same rules about evidence, limitation periods, and the monetary limit apply either way. What differs is the relationship cost, which is worth weighing separately from the legal merits. See suing a family member or friend for money owed for a fuller discussion of that trade-off.
What to Do With the Result
Once you have a clear, organized summary of the loan, a sensible next step is usually a written demand letter — see the demand letter builder to draft one. If a demand letter doesn't resolve things, the Start a Claim guide walks through filing a Plaintiff's Claim, and the filing deadline calculator can confirm you're still within your limitation period before you wait any longer.
Official sources
- Limitations Act, 2002 — the law governing how long you generally have to sue.
- ontario.ca: Suing Someone in Small Claims Court — the official overview, including the current monetary limit.
Frequently Asked Questions
Is this wizard free to use?
Yes — it's provided as a free informational tool, with no account or payment required.
Do I need anything in writing to recover a personal loan?
It helps but isn't strictly required. Text messages, e-transfer records, and other correspondence can support an informal loan. This wizard helps you organize whatever documentation you do have.
Can I sue a family member or friend for money they owe me?
Legally, yes — Small Claims Court doesn't distinguish between a stranger and a family member. See our guide on suing a family member or friend for money owed for the practical considerations involved.
What if there was no formal loan agreement?
Informal loans between family or friends can still be enforced in Small Claims Court, though proving the loan existed and its terms becomes more important without a written agreement. This wizard helps you identify what evidence you do have.