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Queen's University
 

OSAP Appeals

Bankruptcy Reviews

A student’s OSAP eligibility is affected if a student:

  • files for bankruptcy under the Bankruptcy and Insolvency Act (Canada) (BIA);
  • makes a consumer proposal under the BIA that is approved or deemed to be approved by a court under that Act;
  • obtains a consolidation order (Orderly Payment of Debts program) made under Part X of the BIA; or
  • files a document seeking relief for the orderly payment of debts pursuant to provincial or territorial legislation.

If a student files for Bankruptcy, makes a consumer proposal, obtains a consolidation order, or seeks relief for the orderly payment of debts, then under review, he or she may be eligible for further financial assistance through OSAP if all eligibility requirements are met, including the specific criteria set out in this section, and if the required supporting documentation is provided.

Note: A Bankruptcy, a consumer proposal, a consolidation order, or an orderly payment of debts may or may not cause the student to fail the credit check; credit check failures cannot be addressed through the reviews set out in this section.

 

Student did not receive student loans prior to the date filed for Bankruptcy  

If the student is a discharged bankrupt, he or she does not need to provide any supporting documentation in order for their OSAP application to be processed. 

If the student is an undercharged bankrupt, the student’s OSAP application will not be processed until the student provides documentation from their trustee indicating the date the student filed for Bankruptcy and that the following two conditions have been or will be met:

  • neither Ontario nor Canada is a creditor in the Bankruptcy as a result of financial assistance given to the student through OSAP; and  
  • no financial assistance given to the student through OSAP during the 2011-2012 OSAP year will be seized to repay any creditor(s) listed in the Bankruptcy.

Documentation required:

  • A letter from the student’s Trustee in Bankruptcy confirming the date the student filed for Bankruptcy, and that the student is in compliance with the two conditions stated above.

 

Student received student loans prior to the date filed for Bankruptcies–Filed Prior to May 11, 2004 

If the student has been released from the obligation to repay their student loans by reason of a court-ordered absolute order of discharge which states that section 178(1)(g) of the BIA no longer applies to the student debt, the student must provide proof that the order of discharge was made and that three (3) calendar years have elapsed since the day the order was made.

If the student has not been released from his/her obligation to repay their student loans by reason of a court-order absolute notice of discharge as described above, then the student’s OSAP application will not be processed until the student provides proof that he or she has no outstanding balance on any student loans.

Additionally, if the bankruptcy is undischarged, students must provide a letter from their Trustee indicating the date the student filed for Bankruptcy and that the following two conditions have been or will be met:

  • neither Ontario nor Canada is a creditor in the Bankruptcy as a result of financial assistance given to the student through OSAP; and
  • no financial assistance given to the student through OSAP during the 2013-2014 OSAP year will be seized to repay any creditor(s) listed in the Bankruptcy.

Documentation required:

1. a) If the bankruptcy is discharged: a copy of the Notice of Bankruptcy and the student certificate of discharge; OR
b) If the bankruptcy is undischarged: a letter from the student’s Trustee in Bankruptcy confirming the date the student filed for Bankruptcy, that neither Ontario nor Canada is a creditor in the Bankruptcy, and that no financial assistance given through OSAP will be seized to repay any creditors listed in the Bankruptcy.
AND,
2. a) A letter from the student’s financial institution, the National Student Loans Service Centre, and/or the student’s collection agency confirming that there is no outstanding balance on any student loans issued to the student; OR
b) A copy of the court-ordered absolute order of discharge releasing the bankrupt from their student loan debt under section 178(1)(g) of the BIA (must be dated at least 3 calendar years prior to current OSAP application).

Bankruptcies Filed Prior to May 11, 2004 – Undischarged

If the student is an undischarged bankrupt, the student’s OSAP application will not be processed until:

  • he or she provides proof that there is no outstanding balance on any of their student loans; or if the student has been released from the obligation to repay the student loans by reason of a court-ordered absolute order of discharge which states that section 178(1)(g) of the BIA no longer applies to the student debt, the student must provide proof that an order of discharge was made and that three (3) years have elapsed since the day the order was made; AND
  • the student provides proof from their trustee confirming the date the student filed for Bankruptcy and that the following two conditions have been or will be met:
    • neither Ontario nor Canada is a creditor in the Bankruptcy as a result of financial assistance given to the student through OSAP; and
    • no financial assistance given to the student through OSAP during the current loan year will be seized to repay any creditor(s) listed in the Bankruptcy. 

Documentation required:

  • A letter from the student’s financial institution, the National Student Loans Service Centre, and/or the student’s collection agency confirming that there is no outstanding balance on any student loans issued to the student.
  • A letter from the student’s Trustee in Bankruptcy confirming the date the student filed for Bankruptcy, and that the conditions in “2” above are met.

 

Bankruptcies filed on or after May 11, 2004 – Undischarged

If the student is an undischarged bankrupt, the student’s OSAP application will not be processed until:

1.  He or she provides proof that there is no outstanding balance on any of their student loans; or if the student has been released from their obligation to repay their student loans by reason of a court-ordered absolute order of discharge which states that section 178(1)(g) of the BIA no longer applies to the student debt, the student must provide proof that an order of discharge was made and that three (3) years have elapsed since the day the order was made; or the student provides proof that he or she meets the following fourconditions:

  • at the time the student filed for Bankruptcy, he or she was enrolled in an approved program of study at an approved institution and taking the minimum required course load; 
  • the student continues to be enrolled in the same approved program of study in which he or she was enrolled at the time  of the Bankruptcy filing;
  • the student has 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. The student provides proof from his or her trustee indicating the date they 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 the student through OSAP;  and
  • no financial assistance given to the student through OSAP during the current academic year year will be seized to repay any creditor(s) listed in the Bankruptcy.

Documentation required:

  • A copy of the court-ordered absolute order of discharge releasing the bankrupt from their student loan debt; 
  • A letter from the student’s FAO confirming that the program of study in which the student was enrolled at the time the student filed for Bankruptcy is the same as the program of study that the student is applying for assistance to attend; and
  • A letter from the student’s Trustee in Bankruptcy confirming the date the student filed for Bankruptcy, that neither Ontario nor Canada is a creditor in the Bankruptcy as a result of financial assistance given to the student through OSAP, and that none of the financial assistance issued to the student for the current academic year will be seized.

 

Bankruptcies Filed On or After May 11, 2004 – Discharged: Continuation of a Program of Study

If the student is continuing their program of study, they can either provide proof that their previous loans are paid in full (using the required documentation in section 2(b)(i) above); OR the student must provide proof that the following four conditions are met:

  1. at the time the student filed for Bankruptcy, he/she was enrolled in an approved program of study at an approved institution and taking the minimum required course load (Note: students who declare Bankruptcy while in their initial grace period meet this first condition provided they are applying for OSAP for their subsequent year of their program of study. However, students receiving interest relief under an extended grace period do not meet this condition.);
  2. the student continues to be enrolled in the same approved program of study in which he or she was enrolled at the time that the student filed for Bankruptcy;
  3. the student has not had a break in studies of longer than six months since the date he or she filed for Bankruptcy; and
  4. it has not been more than three calendar years since the date the student filed for Bankruptcy.

Additionally, If the bankruptcy is undischarged, students must provide a letter from their Trustee indicating the date the student filed for Bankruptcy and that the following two conditions have been or will be met:

  1. neither Ontario nor Canada is a creditor in the Bankruptcy as a result of financial assistance given to the student through OSAP; and
  2. no financial assistance given to the student through OSAP during the 2013-2014 OSAP year will be seized to repay any creditor(s) listed in the Bankruptcy.

Documentation required:
1. a) If the bankruptcy is discharged: a copy of the Notice of Bankruptcy and the student certificate of discharge; OR
b) If the bankruptcy is undischarged: a letter from the student’s Trustee in Bankruptcy confirming the date the student filed for Bankruptcy, that neither Ontario nor Canada is a creditor in the Bankruptcy, and that no financial assistance given through OSAP will be seized to repay any creditors listed in the Bankruptcy.
AND,
2. A letter from the student’s FAO confirming that the program of study in which the student was enrolled at the time of the student filed for Bankruptcy, is the same as the program of study the student is applying for assistance to attend.

    Kingston, Ontario, Canada. K7L 3N6. 613.533.2000