- The most obvious difference is that a corporation does not draw wages.
- The core enforcement tools remain the same as they would be against an individual, applied to the corporation's own property instead: - Garnishment of the corporation's bank accounts, or…
- Just as an individual debtor can be examined under oath about their income and assets, a corporation can be required to produce a representative — often a director or officer — to answer…
Winning a judgment against a company feels like the hard part is over. Then reality sets in: there is no individual to garnish wages from, no personal bank account to chase, and sometimes no clear picture of what the corporation even owns. Enforcing a judgment against a corporation in Ontario uses the same basic toolkit as enforcing against a person, but the target looks different — and that changes your strategy.
No Wages to Garnish
The most obvious difference is that a corporation does not draw wages. Ontario's Wages Act protects a portion of an individual's wages from garnishment, but that concept simply does not apply to a corporate debtor — there is no paycheque to reach. Instead, enforcement against a company focuses entirely on its assets, bank accounts, and receivables.
What You Can Still Reach
The core enforcement tools remain the same as they would be against an individual, applied to the corporation's own property instead:
- Garnishment of the corporation's bank accounts, or of money owed to the corporation by its own customers or clients
- Writ of seizure and sale against equipment, inventory, vehicles, or real property owned by the corporation
- Examination in aid of execution, directed at someone who can speak to the corporation's finances on its behalf
A corporation with active operations, real receivables, and business assets can often be a more productive target than an individual with limited means — the harder cases are the ones described below.
Examining a Corporate Representative
Just as an individual debtor can be examined under oath about their income and assets, a corporation can be required to produce a representative — often a director or officer — to answer questions about the company's finances, assets, and accounts receivable. This is often the most useful early step when you do not already know what the corporation owns or where its money sits.
When the Corporation Has No Assets
The harder scenario is a corporation — often a numbered company or a small operating entity — that has stopped operating, has no bank balance, and owns nothing worth seizing. A judgment against a company like this can be difficult to collect no matter how sound the underlying claim was. Ontario judgments generally remain enforceable for a significant period and can be renewed, so a currently uncollectible judgment is not necessarily worthless forever, but it may require patience.
Directors and shareholders of a corporation are generally not personally liable for the corporation's debts simply because the corporation cannot pay — that separation is one of the basic features of operating through a corporate structure. There are limited circumstances where that separation can be challenged, but those situations are fact-specific and legally complex, and they are not something to assume applies without individual legal advice.
Personal Guarantees Change the Picture
If a director, owner, or other individual personally guaranteed the debt or obligation underlying your judgment — a common arrangement in commercial lending and some contracts — that guarantee can potentially let you pursue that individual directly, separately from the corporation itself. Whether a guarantee actually applies, and what it covers, depends entirely on its specific wording, so it needs to be reviewed carefully rather than assumed.
If you are still at the stage of deciding who to sue, or how to word a claim, it is worth checking at the outset whether any individual behind the corporation signed something that could expose them personally. Adding that detail early is far easier than trying to reconstruct it after judgment, once enforcement has already stalled against an empty corporate shell.
Practical Steps Before You Spend Money on Enforcement
- [ ] Confirm the corporation is still active and has not been dissolved
- [ ] Look for any personal guarantee signed in connection with the debt
- [ ] Try to identify a bank, supplier, or customer relationship worth garnishing
- [ ] Consider whether an examination of a company representative would reveal more before you file a writ
- [ ] Weigh enforcement costs against the realistic likelihood of recovery
Frequently asked questions
Can I go after the owner's personal assets if the company has none?
Generally, no — not simply because the corporation is out of money. Owners and directors are typically shielded from personal liability for corporate debts, unless something specific changes that picture, such as a personal guarantee or a legally recognized exception, which requires individual assessment.
What if the company just stops operating to avoid paying me?
A corporation ceasing operations does not automatically erase a judgment against it, but it can make practical collection very difficult if there are no remaining assets. Whether any additional legal avenue applies depends heavily on the specific facts.
Is examining a company representative different from examining an individual debtor?
The underlying process is similar — a representative answers questions under oath about the corporation's finances — but you are seeking information about company accounts, receivables, and assets rather than personal income and property.
Should I check for a personal guarantee before I even sue the corporation?
It is worth checking early. If a personal guarantee exists, it can meaningfully change your enforcement options later, and knowing about it before or during the claim can shape how you pursue the matter from the start.
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