What to do next
Work out exactly what has been served and when
A demand letter, a statutory notice of intention to enforce security, and an application to appoint a receiver are three different stages with different timelines. Establish which one you are at, because the remedies differ.
Read the security and the guarantees
What is secured, in what priority, and who guaranteed it. Personal guarantees from directors and spousal guarantees are common and change the calculus entirely - the company's insolvency does not extinguish them.
Open negotiations before the notice period expires
Forbearance agreements, standstills and revised covenants are routinely negotiated where the borrower engages early with a credible plan. Lenders generally prefer repayment to enforcement; they enforce when they lose confidence.
Assess restructuring options in parallel
A proposal under the BIA or CCAA proceedings create a stay that halts enforcement while a plan is developed. The window to choose narrows fast once a receiver is appointed, so take advice before that point, not after.
Protect the directors
Trust amounts - payroll deductions and GST/HST - carry personal liability, and preferential payments in the period before insolvency can be reversed and can expose directors. Every payment decision in this window should be advised on.
Frequently asked questions
How long do I have?
Secured lenders must generally give statutory notice before enforcing against a business borrower, and the period is short. Confirm the exact date from the notice - it is the deadline that matters.
Can they take my house?
If you signed a personal guarantee or granted security over it, potentially yes. Guarantees survive the company's insolvency, which is why they are the first thing to review.
Will filing a proposal stop enforcement?
A proposal or CCAA filing creates a stay that halts enforcement while a plan is developed. That is often the immediate objective, but the option narrows once a receiver is appointed.
Which lawyer handles this?
An insolvency and restructuring lawyer, urgently. Timelines here are measured in days, and options close in a defined order.
This is general information, not legal advice. Laws vary by location and every situation is different — speak with a qualified lawyer about your specific circumstances.