Personal Finance

Bankruptcy OSAP DECLINED>???

  • Last Updated:
  • Jan 23rd, 2012 2:51 pm
[OP]
Newbie
Jan 16, 2011
23 posts

Bankruptcy OSAP DECLINED>???

I'm applying for OSAP to return back to school but will be applying for bankruptcy or intend to. My concern is that my OSAP will most likely deny my application once bankruptcy is filed.

I've already determined than bankruptcy is my best option and would like to address the issue asap, however would it make more sense to hold off on bankruptcy until I'm finished school to ensure that I receive an education. I've heard that OSAP will be denied if a bankruptcy is on your record.

Returning back to school is paramount for me and will hopefully pay off with a more lucrative career in the future. What do you guys think I should do??

Has anyone had any experience with dealing with OSAP with a bankruptcy on file. I know that if a decision has been made not in your favor that you could appeal their decision on certain grounds. Any wise words of wisdom.

Thanks for your time and help.

EDIT:

OSAP follows you regardless. I just want to be considered without an automatic denial due to bankruptcy.I may not be granted OSAP due to a filing of a bankruptcy even though I'm the ideal candidate. I'm not trying to receive OSAP to then file and not pay them. It doesn't work that way anyhow.

********************Consumer Proposal Instead*****************

If I apply for a consumer proposal instead won't my credit already be too low to get accepted for OSAP. Anyone know the minimum score
needed to be even considered.
14 replies
[OP]
Newbie
Jan 16, 2011
23 posts
bcbgboy13 wrote:
Jan 23rd, 2012 10:43 am
What happened to the "House Sold Money Sitting in Account" from Nov.6, 2011



I was writing on behalf of my family members not myself. My parents sold their house and are clueless about the markets and investments.They also have not clue about my financial circumstances and I'd like to keep it that way and deal and resolve this matter on my own.
Sr. Member
Jun 9, 2006
836 posts
83 upvotes
Thornhill
I normally don't comment on posts like this, and sorry about providing you with a useless post, but I feel that something is extremely wrong with your moral compass if you believe that you should be granted an education only to not have to re-pay it because you will declare bankruptcy as soon as you finish school. Not only that, but you feel that you will have a 'lucrative' career because you have wiped your debts clean.

Here's some reading for you from the Ontario Government website regarding OSAP and bankruptcy :

https://osap.gov.on.ca/OSAPPortal/en/OS ... 03431.html
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Dec 26, 2006
2826 posts
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OP is in a bit of a pickle. It appears that if he goes bankrupt before applying for OSAP he will get denied. But if he gets OSAP first, there is a chance that a creditor could garnish the account that is holding his OSAP cash.

Really though, why would anyone, even OSAP, give money to someone who has already demonstrated a failure to pay it back? Not trying to be critical, OP, but that's the reality of how lenders look at bankrupts.
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Dec 26, 2006
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Waiwai wrote:
Jan 23rd, 2012 11:15 am
I normally don't comment on posts like this, and sorry about providing you with a useless post, but I feel that something is extremely wrong with your moral compass if you believe that you should be granted an education only to not have to re-pay it because you will declare bankruptcy as soon as you finish school. Not only that, but you feel that you will have a 'lucrative' career because you have wiped your debts clean.

I think you are misunderstanding the OP. I don't think he wants to go bankrupt on his OSAP debts, but on his current debts so he can have a clean slate before he starts school.

Even if he did want to go bankrupt on his OSAP debt, he can't until he has been out of school for at least 7 years.
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Feb 22, 2007
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Mississauga
from my understanding ... if you claim bankruptcy, your osap loan will ALWAYS stay with you
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Dec 26, 2006
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pardnme wrote:
Jan 23rd, 2012 11:32 am
from my understanding ... if you claim bankruptcy, your osap loan will ALWAYS stay with you
No. You can go bankrupt on OSAP debt, but only after you have been out of school for 7 years.

Bankruptcy and Insolvency Act, Section 178:

178. (1) An order of discharge does not release the bankrupt from

(g) any debt or obligation in respect of a loan made under the Canada Student Loans Act, the Canada Student Financial Assistance Act or any enactment of a province that provides for loans or guarantees of loans to students where the date of bankruptcy of the bankrupt occurred
(ii) within seven years after the date on which the bankrupt ceased to be a full- or part-time student;
[OP]
Newbie
Jan 16, 2011
23 posts
Waiwai wrote:
Jan 23rd, 2012 11:15 am
I normally don't comment on posts like this, and sorry about providing you with a useless post, but I feel that something is extremely wrong with your moral compass if you believe that you should be granted an education only to not have to re-pay it because you will declare bankruptcy as soon as you finish school. Not only that, but you feel that you will have a 'lucrative' career because you have wiped your debts clean.

Here's some reading for you from the Ontario Government website regarding OSAP and bankruptcy :

https://osap.gov.on.ca/OSAPPortal/en/OS ... 03431.html
I'm being misunderstood here. I don't want to file for bankruptcy now because that may avoid my approval to receiving osap. My intent is not to get a free education. You're making it seem like Im looking to receive OSAP and declare bankruptcy. That is not the case, OSAP follows you anyways..it's not written of. My question is should I delay bankruptcy so that I could at least receive OSAP due to my financial conditions. I want to be able to go to school, it's not like I want a free education without the intent of paying it back. Do you follow me??
[OP]
Newbie
Jan 16, 2011
23 posts
mc_molineux wrote:
Jan 23rd, 2012 11:18 am
OP is in a bit of a pickle. It appears that if he goes bankrupt before applying for OSAP he will get denied. But if he gets OSAP first, there is a chance that a creditor could garnish the account that is holding his OSAP cash.

Really though, why would anyone, even OSAP, give money to someone who has already demonstrated a failure to pay it back? Not trying to be critical, OP, but that's the reality of how lenders look at bankrupts.
Don't be so quick to judge when you don't know the full picture. It's not as simple as you make it out to be and as you know the bankruptcy doesn't get swiped under the rug, there are ramifications to it and I will have to deal with not having access to credit for 7 years in addition to other drawbacks (home ownership, quality life, judgement, second class citizen)
Correct me if I'm wrong but if you are denied OSAP there are conditions where you could appeal and then be reconsidered.
I'm fully confident that under my circumstances that I would be reconsidered at the least and probably granted OSAP but would like to move on as easily possible. I want to opportunity to go back to school it was designed to assist people who meet certain criteria and I know I fit the bill.
[OP]
Newbie
Jan 16, 2011
23 posts
Waiwai wrote:
Jan 23rd, 2012 11:15 am
I normally don't comment on posts like this, and sorry about providing you with a useless post, but I feel that something is extremely wrong with your moral compass if you believe that you should be granted an education only to not have to re-pay it because you will declare bankruptcy as soon as you finish school. Not only that, but you feel that you will have a 'lucrative' career because you have wiped your debts clean.

Here's some reading for you from the Ontario Government website regarding OSAP and bankruptcy :

https://osap.gov.on.ca/OSAPPortal/en/OS ... 03431.html
*******************Misunderstanding******************

I don't want to receive OSAP to then avoid paying them back. I'm asking if I should delay filing so that I will be considered for OSAP and not just get an automatic decline. I believe if there's a bankruptcy on record it just makes things more complicated. I want to delay in hopes of possibly receiving OSAP. I will pay them back has it does follow you. My current financial circumstance does not afford me to go back to school thus the application for OSAP. Does it make sense now??
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Sep 10, 2007
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moejenkins wrote:
Jan 23rd, 2012 11:05 am
I was writing on behalf of my family members not myself. My parents sold their house and are clueless about the markets and investments.They also have not clue about my financial circumstances and I'd like to keep it that way and deal and resolve this matter on my own.

I think your parents should invest some money in YOU, even though that will apposite of GIC (GLC - Guaranteed Loss Certificate?) and get you out of your bankruptcy situation. Bankruptcy is not a game, and should be only used as your last option.

Anyway, I have a feeling OP would like to keep creditors' money one way or other.
  • To overcome evil with good is good, to resist evil by evil is evil.
  • A sign of a person’s evil is his need to constantly argue.
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Dec 26, 2006
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moejenkins wrote:
Jan 23rd, 2012 1:01 pm
Don't be so quick to judge when you don't know the full picture. It's not as simple as you make it out to be and as you know the bankruptcy doesn't get swiped under the rug, there are ramifications to it and I will have to deal with not having access to credit for 7 years in addition to other drawbacks (home ownership, quality life, judgement, second class citizen)
Correct me if I'm wrong but if you are denied OSAP there are conditions where you could appeal and then be reconsidered.
I'm fully confident that under my circumstances that I would be reconsidered at the least and probably granted OSAP but would like to move on as easily possible. I want to opportunity to go back to school it was designed to assist people who meet certain criteria and I know I fit the bill.

C'mon now, I wasn't judging, I was merely stating how potential creditors will look at you.

If you think I was harsh, you haven't seen anything yet.
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User avatar
Aug 22, 2003
15541 posts
964 upvotes
Niagara Falls
As a first time OSAP app, a bankruptcy is an automatic denial. A satisfactory credit check is also a requirement. Appealing either of these requirements is rarely, if ever successful. Unfortunately OP, if the situation is so dire that you are contemplating bankruptcy, I doubt you will pass the credit check either. Another thing to ponder, you are legally required to report all changes in circumstances to OSAP immediately, and a bankruptcy would fall under that and you then become ineligible. It doesn't sound like you could hold off long enough to get through a multi-year program so I'm really not sure where you go from here....

BTW OP, OSAP is a managed risk program that is need based only, not ever was it or will it be want based...
Thinking seriously about the 4 S's...Sun, Sand, Surf and ... Booked for Sept in Mexico and booked Samana DR for Jan!
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Jul 11, 2017
1 posts
See, I understood exactly what you meant. Lol. Because I'm in the same predicament. Several years ago I became a victim of a very brutal assault at the hands of a stranger. I couldn't work because I was afraid to leave my house. I've gotten help and now I want to put my life back together and go back to school. The problem is that I need a car to go back to school....and the 407 ETR is absolutely bat-shit crazy. I ORIGINALLY owed them 3k .....but now with interest they're claiming that I owe them 40 THOUSAND DOLLARS!!!!! On a 3 thousand dollar bill. Talk about crazy. I want to pay for my education too. I have no problem paying the 407 what I originally owed them....what I have a problem with, is paying 57 THOUSAND DOLLARS! If they wanna charge me a couple of thousand dollars on interest, I'd be happy with that.....but NOT 57 THOUSAND DOLLARS.
And I certainly want to pay for school. I have no idea how I'm going to be able to make this possible with the 407 breathing down my throats and not being able to get a car because the 407 will block my plates and my ownership, and I absolutely need a car to go to school. .....

So.....the moral of the story to the person who rudely jumped to conclusions: The next time, try to understand that you have absolutely no idea what has happened in someone's life to bring them to this point.

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