Bankruptcies, Consumer Proposals, Consolidation Orders and Orderly Payment of Debts

In this section,

Discover what effect filing for bankruptcy or initiating a related event (i.e., making a consumer proposal, or obtaining a consolidation order for the orderly payment of debts) can have on your OSAP eligibility.

Students who received student loans prior to the date they filed for Bankruptcy or initiated a Related Event

If you received an Ontario Student Loan, a Canada Student Loan or a Canada-Ontario Integrated Student Loan on or before the date you filed for Bankruptcy or initiated a Related Event and:

• you are a discharged bankrupt, or you initiated a Related Event, your application will not be processed until:
  1) you provide proof that you have no outstanding balance on any student loans; OR
  2) if you have been released from your obligation to repay your student loans by reason of an absolute order of discharge under the BIA, you provide proof that the order of discharge was made and that three years have elapsed since the day the order was made.
• you are an undischarged bankrupt, your application will not be processed until:
  1) (a) you provide proof that you have no outstanding balance on any student loans; OR
  (b) if you have been released from your obligation to repay your student loans by reason of an absolute order of discharge under the BIA, you provide proof that an order of discharge was made and that three years have elapsed since the day the order was made; AND
  2) you provide proof from your trustee indicating the date you filed for Bankruptcy and that the following two conditions have been or will be met:
  • Neither Ontario or Canada is a creditor in the Bankruptcy as a result of financial assistance given to you through OSAP; and
  • No financial assistance given to you through OSAP in the 2009-2010 OSAP year (August 1, 2009, to July 31, 2010) will be seized to repay any creditor(s) listed in the Bankruptcy.

Students who did not receive student loans prior to the date they filed for Bankruptcy or initiated a Related Event

If you did not receive an Ontario Student Loan, a Canada Student Loan or a Canada-Ontario Integrated Student Loan on or before the date you filed for Bankruptcy or initiated a Related Event and:

• you are a discharged bankrupt, or you initiated a Related Event, you do not need to provide any supporting documentation.
• you are an undischarged bankrupt, your application will not be processed until you provide documentation from your trustee indicating the date you filed for Bankruptcy and that the following two conditions have been or will be met:
  1) Neither Ontario or Canada is a creditor in the Bankruptcy as a result of financial assistance given to you through OSAP; and
  2) No financial assistance given to you through OSAP in the 2009-2010 OSAP year (August 1, 2009, to July 31, 2010) will be seized to repay any creditor(s) listed in the Bankruptcy.

Students who received student loans prior to the date they filed for Bankruptcy or initiated a Related Event

If you received an Ontario Student Loan, a Canada Student Loan or a Canada-Ontario Integrated Student Loan on or before the date you filed for Bankruptcy or initiated a Related Event and:

• you are a discharged bankrupt, or you initiated a Related Event, your application will not be processed until:
  1) you provide proof that you have no outstanding balance on any student loans; OR
  2) if you have been released from your obligation to repay your student loans by reason of an absolute order of discharge under the BIA, you provide proof that an order of discharge was made and that three years have elapsed since the day the order was made; OR
  3) you provide proof that you meet the following four conditions:

• at the time you filed for Bankruptcy or initiated a Related Event you were enrolled in an approved program of study at an approved institution and you were taking the minimum required course load; and
• you continue to be enrolled in the same approved program of study in which you were enrolled at the time that you filed for Bankruptcy or initiated a Related Event; and
• you have not had a break in studies of longer than six months since the date you filed for Bankruptcy or initiated a Related Event; and
• it has not been more than 3 years since the date you filed for Bankruptcy or initiated a Related Event.

• you are an undischarged bankrupt, your application will not be processed until:
  1)(a) you provide proof that you have no outstanding balance on any student loans; OR
  (b) if you have been released from your obligation to repay your student loans by reason of an absolute order of discharge under the BIA, you provide proof that an order of discharge was made and that three years have elapsed since the day the order was made; OR
  (c) you provide proof that you meet the following four conditions:
  
• at the time you filed for Bankruptcy you were enrolled in an approved program of study at an approved institution and you were taking the minimum required course load; and
  
• you continue to be enrolled in the same approved program of study in which you were enrolled at the time that you filed for Bankruptcy; and
• you have not had a break in studies of longer than six months since the date of Bankruptcy; and
• it has not been more than 3 years since the date of Bankruptcy; AND
  2) you provide proof from your trustee indicating the date you filed for Bankruptcy and that the following two conditions have been or will be met:
  
• Neither Ontario or Canada is a creditor in the Bankruptcy as a result of financial assistance given to you through OSAP; and
  
• No financial assistance given to you through OSAP in the 2009-2010 OSAP year (August 1, 2009, to July 31, 2010) will be seized to repay any creditor(s) listed in the Bankruptcy.

Students who did not receive student loans prior to the date they filed for Bankruptcy or initiated a Related Event

If you did not receive an Ontario Student Loan, a Canada Student Loan or a Canada-Ontario Integrated Student Loan on or before the date you filed for Bankruptcy or initiated a Related Event and:

• you are a discharged bankrupt, or you initiated a Related Event, you do not need to provide any supporting documentation.
• you are an undischarged bankrupt, your application will not be processed until you provide documentation from your trustee indicating the date you filed for Bankruptcy and that the following two conditions have been or will be met:
  1) Neither Ontario or Canada is a creditor in the Bankruptcy as a result of financial assistance given to you through OSAP; and
  2) No financial assistance given to you through OSAP in the 2009-2010 OSAP year (August 1, 2009, to July 31, 2010) will be seized to repay any creditor(s) listed in the Bankruptcy.

Contact your financial aid office for additional information