- To enforce a guarantee, a creditor generally needs to establish: - A valid underlying debt or obligation existed - The primary debtor defaulted on it - A valid guarantee exists covering…
- Before suing, most creditors send the guarantor a written demand setting out the amount owed, the basis for the guarantee claim, and a deadline to pay.
- Ontario has more than one civil track, and the amount claimed against the guarantor generally determines which applies: Monetary thresholds like these are set by regulation and adjusted…
A signed guarantee is only useful if you can actually collect on it. When a primary debtor defaults and a guarantor stands behind the debt, enforcing a personal guarantee in Ontario involves the same basic building blocks as any other civil claim — proof of the debt, proof of default, proper notice, and a route through the right court — layered with a few guarantee-specific wrinkles.
This guide walks through the process step by step, from confirming what you can prove to actually collecting on a judgment.
Step 1 — Confirm What You Need to Prove
To enforce a guarantee, a creditor generally needs to establish:
- A valid underlying debt or obligation existed
- The primary debtor defaulted on it
- A valid guarantee exists covering that debt, meeting the Statute of Frauds writing and signature requirement
- The guarantee's own conditions for triggering liability, such as notice to the guarantor, have been met, if the document requires them
- The amount actually owed, after crediting any payments already made
Gaps in any of these — particularly an unsigned or poorly worded guarantee — are the most common way an otherwise strong claim runs into trouble.
Step 2 — Send a Formal Demand
Before suing, most creditors send the guarantor a written demand setting out the amount owed, the basis for the guarantee claim, and a deadline to pay. This isn't always a strict legal requirement, but it often prompts payment without litigation, and it creates a clear record showing the guarantor had a fair opportunity to resolve the matter before a claim was filed.
Step 3 — Choose the Right Court
Ontario has more than one civil track, and the amount claimed against the guarantor generally determines which applies:
| Track | Approximate Monetary Range (as of mid-2026 — verify current thresholds before relying on this) | Notes |
|---|---|---|
| Small Claims Court | Claims up to $50,000, exclusive of costs and interest | Designed for simpler, faster resolution; paralegals may represent parties here |
| Simplified Procedure | Claims up to $200,000 | A streamlined Superior Court process with limited discovery |
| Ordinary Superior Court procedure | No upper limit | Used for larger or more complex guarantee claims |
Monetary thresholds like these are set by regulation and adjusted periodically, so confirm the current figures before filing.
Step 4 — Start the Claim
In Small Claims Court, the creditor files a Plaintiff's Claim; in Superior Court, including Simplified Procedure, the action starts with a Statement of Claim. Once the guarantor is properly served, they have a set window to respond, with the length of that window depending on where the guarantor was served — longer if service happened outside Ontario. If the guarantor doesn't respond in time, the creditor can generally move for default judgment without a full trial.
Step 5 — If the Guarantor Defends
If the guarantor files a defence, the matter proceeds toward a settlement conference and, if unresolved, a trial. Common guarantor defences include disputing the validity or scope of the guarantee, arguing the underlying debt was never properly owed, or arguing the guarantee was discharged by a material change to the underlying deal.
Step 6 — Enforce the Judgment
A judgment against a guarantor is enforced the same way as any other civil judgment. Ontario's enforcement tools include:
- Garnishment of bank accounts or wages, though Ontario law shields a meaningful portion of ordinary wages from garnishment, so full wage seizure generally isn't available for standard debts
- A writ of seizure and sale, filed with the sheriff for the county where the guarantor has property
- Examination of the judgment debtor, questioning the guarantor under oath about income and assets
The court doesn't monitor for assets on its own — enforcement requires the creditor to take active steps, often starting with figuring out where the guarantor banks, works, or holds property.
Frequently asked questions
Do I have to sue the primary debtor and the guarantor together?
Not necessarily. Depending on the guarantee's wording, a creditor may often be able to pursue the guarantor directly without first exhausting remedies against the primary debtor, though many creditors pursue both where practical.
What if the guarantor claims they never really understood what they were signing?
That kind of argument is a recognized ground for challenging a guarantee in some circumstances, but it faces a high bar in court and depends heavily on the specific facts — it isn't a defence to assume will succeed.
How long do I have to sue on a guarantee?
Ontario's general limitation period requires most civil claims to start within two years of discovery (current as of mid-2026 — confirm before relying on it), though the clock's exact starting point in a guarantee dispute depends on the facts, and some claim types carry their own shorter limitation periods — get advice on timing rather than assuming.
What if the guarantor has no money or assets?
A judgment against a judgment-proof guarantor may not be collectible right away, but Ontario judgments generally remain enforceable for a significant period and can be renewed, so a currently uncollectible judgment isn't necessarily worthless long-term.
This is a litigation question
Start a file online — flat, published fees, reviewed by a licensed Ontario lawyer before a dollar is owed.