What is the difference between a law firm and a collections agency
in Ontario?

Overview

The main difference between collections agencies and law firms is that law firms regularly launch civil lawsuits to collect debts, whereas collection agencies typically rely on repeated phone calls, letters and empty threats. Many debtors tend to ignore these calls and letters, and do not comply with demands for payments. However, when a law firm wins a case in civil court, we can seize the debtor’s personal assets, the debtor’s house (if any), and garnish the debtor’s wages from the debtor’s employer. That being said, if the debtor is a corporation, then the corporation’s owners’ personal assets will typically be protected. However, we can still pursue the assets of the corporation if they are still in business.

Law firms also have relationships with third-party companies who are experienced in locating people who may be hiding and can perform private investigation services.

Since we are able to take legal action to effectively collect debts, we do not need to resort to disrespectful or inappropriately aggressive tactics. By engaging the legal process in a civil and professional manner, we uphold the reputation of your business while asserting your right to be paid for debts owed to you.