ARTICLE
9 December 2025

What A Personal Guarantee Means For Ontario Business Owners (Video)

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Devry Smith Frank LLP

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Since 1964, Devry Smith Frank LLP – conveniently located in Whitby, Barrie and headquartered in the Don Mills area of Toronto, has been a trusted advisor and advocate for corporations, individuals, and small businesses. Our full-service Canadian law firm is comprised of over 175 dedicated legal and support staff, delivering personalised and transparent legal expertise in virtually every area of law.
Ontario bankruptcy and insolvency lawyer Andrew Johnstone explains how personal guarantees function in Ontario and why they play a significant role in commercial lending.
Canada Ontario Insolvency/Bankruptcy/Re-Structuring
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Ontario bankruptcy and insolvency lawyer Andrew Johnstone explains how personal guarantees function in Ontario and why they play a significant role in commercial lending. A personal guarantee makes an individual, often a business owner, personally responsible for a debt if the company cannot repay it. This gives creditors stronger protection and broader legal options, especially when dealing with newer or smaller businesses. The discussion outlines what a personal guarantee means, how it affects both parties, and why it is widely used in financing arrangements.

In Andrew's practice, he assists secured and unsecured creditors, trustees, and debtors in matters involving bankruptcy petitions, receiverships, debt recovery, and insolvency litigation. He advises clients on their rights and obligations under the Bankruptcy and Insolvency Act and guides them through available restructuring or enforcement remedies.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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