Business Debt Solutions in Toronto

If your Toronto business cannot service its debt, you have legal options well before bankruptcy. We help owners restructure corporate debt, negotiate with creditors and CRA, and keep trading through it. We are a law firm, so our duty runs to you rather than to your creditors.

Serving Toronto, North York, Scarborough and Etobicoke
Corporate restructuring and Division 1 Proposals
Commercial proposals and B2B settlement
Stop creditor lawsuits and collection action
A law firm, not a trustee

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Business Debt Help in Toronto

Toronto carries the largest concentration of businesses in Canada, and the highest fixed costs. Commercial rent, professional overheads and payroll leave little room when receivables slow. Ontario recorded 369 business insolvencies in the first quarter of 2026, up 4.8% year over year, and Toronto accounts for a substantial share of that.

Corporate matters for Toronto businesses are heard in the Superior Court of Justice at 393 University Avenue, and the Toronto office of the Office of the Superintendent of Bankruptcy administers filings for the region.

At Metus Lykos Debt Law Firm we advise Toronto owners on all four business debt routes: corporate restructuring, Division 1 Proposals, Commercial Consumer Proposals and negotiated B2B settlement. Which one fits depends on how much you owe, whether the business is viable, and how much time you have.

How We Help Toronto Businesses

Corporate Debt Restructuring

Division 1 Proposals

Commercial Consumer Proposals

B2B Debt Settlement

CRA Arrears Negotiation

Creditor Lawsuit Defence

Supplier and Trade Debt

Commercial Lease Arrears

Personal Guarantee Exposure

Director Liability Advice

Asset Restructuring

Wind-Down Planning

Debts That Survive Restructuring

CRA Source Deductions (director liability)

Secured Equipment Loans

Commercial Mortgages

Court Fines and Penalties

Debts Arising From Fraud

How We Work With Toronto Businesses

The legal framework is federal, so it works the same way across Ontario. What changes is who is advising you while it happens.

Free, confidential consultation

We review what the company owes, what is secured, and what you have guaranteed personally. You leave knowing which legal options are genuinely open to the business.

We assess whether the business is viable

Restructuring only makes sense if there is a business worth saving. If there is not, an orderly wind-down protects you better than trading on.

We identify the right legal route

Under $250,000 unsecured points to a Commercial Consumer Proposal. Above it, a Division 1 Proposal. With funds available and time short, settlement may be faster.

We negotiate with creditors as your counsel

Approaches come from a law firm rather than from you. Creditors respond differently, and you stop fielding collection calls directly.

We coordinate any formal filing

Only a Licensed Insolvency Trustee can file a proposal. We coordinate that filing and continue to represent your legal interests throughout.

The business restructures and keeps trading

Collection action stops, the debt is dealt with on agreed terms, and the company continues operating.

Working With a Business Debt Law Firm in Toronto

Pros

The benefits of a consumer proposal

One firm handling every business debt option
Collection action stops once a proposal is filed
The business keeps trading through the process
Personal guarantee exposure assessed alongside company debt
Lawyers negotiating, not an impartial administrator
Options compared before you commit to any of them
Confidential from the first conversation
No fee unless we reduce what you owe

Cons

The disadvantages of a consumer proposal

Formal proposals appear on the public insolvency register
Secured lenders keep their rights over collateral
CRA source deductions remain a director liability
Full financial disclosure of the business is required
Restructuring only works if the business is viable

Does Your Toronto Business Need Help?

Talk to us if any of these apply:
Suppliers have put your account on hold or COD
CRA has issued a demand or garnished the business account
You are using one credit facility to service another
A creditor has sued or obtained judgment
You have personally guaranteed business debt
Payroll is becoming difficult to meet
You are considering closing rather than restructuring

Depending on the size of the debt, the route may be corporate debt restructuring, a Division 1 Proposal for amounts over $250,000, a Commercial Consumer Proposal below that, or B2B debt settlement if speed matters most. We work through which applies at the first consultation.

We reduce your debt. Not your dignity.

Business Debt FAQs for Toronto Owners

01 Do you need to be in Toronto to work with us?

No. We are licensed by the Law Society of Ontario and act for businesses across the province. Most of the work is done by phone, video and email, and our office is in Markham if you prefer to meet in person.

02 Which industries do you see most in Toronto?

Professional services, hospitality and construction. Construction leads Ontario business insolvencies overall, at 208 filings nationally in Q1 2026 and rising 7.8% year over year, and Toronto's development pipeline means we see a great deal of it.

03 Can my business keep operating during restructuring?

Usually yes, and that is normally the point. Creditors generally accept a proposal because an operating business is expected to pay them more than a liquidation would.

04 Am I personally liable for my corporation's debt?

Generally not, unless you signed a personal guarantee or the debt involves CRA source deductions, where directors carry personal liability. Most owners have guaranteed more than they remember, so this is worth reviewing early.

05 What happens to CRA debt?

Corporate income tax and HST arrears can usually be dealt with in a proposal. Payroll source deductions are different, because directors are personally liable for them and that liability is not simply erased.

06 Will restructuring stop a creditor lawsuit?

Filing a proposal triggers a stay of proceedings that halts most unsecured creditor action, including lawsuits and garnishment. Negotiated settlement does not, which is the main trade-off between the two.

07 How much does this cost?

Our fee is a share of what we save you, so we only earn when we reduce what you owe. The first consultation is free and carries no obligation.

08 What if the business is not viable?

Then restructuring is the wrong answer and we will say so. An orderly wind-down that limits your personal exposure is often the better outcome, and knowing that early saves money.

09 How quickly can you act?

If a creditor has served a claim or CRA has issued a demand, call before the deadline passes. Settlement can move in weeks, and a proposal gives protection from the day it is filed.

Our Service Area

Real Debt Help, Wherever You Are in Ontario

Metus Lykos Debt Law Firm proudly serves clients across the entire province of Ontario. Wherever you call home, our lawyers are ready to review your situation and explain your legal options — confidentially, and free of judgment.

Toronto

Markham

Mississauga

Brampton

Ottawa

Hamilton

London

Windsor

Don't see your city listed? We work with clients across all of Ontario, in person and remotely. If you live in the province, we can help.

Take the First Step Toward Becoming Debt-Free

Speak to a business debt lawyer about your Toronto company. Book a free, confidential consultation. No pressure and no obligation.