• Last Updated:
  • Mar 16th, 2018 12:34 pm
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[OP]
Member
Feb 17, 2015
487 posts
131 upvotes
Windsor, ON

OSAP judgement

Tenant I have been renting part of my house to had a lady show up hand her a paper turns out its a judgement for 16000 in osap debt...tenant has been renting from me the last year and is a close friend. I live in the extension of the house so I can pay off mortgage faster, the paper says something about 20 days before a judgement is obtained and the tenant was asking about advice regarding the issue, I got her a free credit karma report...4 collection accounts ..pretty much a lost cause, she does however have kids and only receives ontario works and baby bonus doesn't work at all so I am wondering what they are going to do if a judgement is obtained, should she seek legal aid and try to fight the judgement or just leave it be and not work for 6 to 10 years? I looked it up and did confirm they cant garnish her assistance
13 replies
Newbie
Mar 12, 2018
10 posts
1 upvote
I had to file a proposal last year and was told OSAP will still be owed in full at the end of any proposal or bankruptcy. They can participate in the proposal, but when it's over, I still owe them in full, where as all of my other accounts are done and gone.
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Jan 27, 2004
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soupmaster666 wrote:
Mar 13th, 2018 2:27 pm
If the tenant and her children are living off of government support, have no income and no immediate plans for income, and are $25k in the hole, she should speak with a bankruptcy trustee.

If bankruptcy is her best bet, she's accruing additional debt (interest fees) for no reason.

That said, in my experiences the chances of the OSAP going away are very very low. She won't be able to own any decent assets for the next 15 years of her life if she doesn't pay at least some of it back.
Bankruptcy cost $200/month.
Thats a lot for someone living completely off the govt.
[OP]
Member
Feb 17, 2015
487 posts
131 upvotes
Windsor, ON
Ya I looked into bankruptcy for them ran into that issue they got the loan in 2012 apparently it needs to be I think either 7 or 10 years before you put it into a bankruptcy. They dont own a car just a little bit of furniture and TVs which I assume they cant touch still trying to find out if they ever applied for repayment assistance I heard that can cut osap debt
Deal Addict
Jan 2, 2015
1315 posts
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Toronto, ON
You cannot use bankruptcy to avoid paying a student loan if it has been less than 7 years (5 years in some cases).

Social assistance income cannot be garnished, and neither can Child Tax. However I don't get going to post-secondary schooling and then not using that education to get a job.

Bankruptcy costs $200 per month, but isn't there a fee charged by the trustee? They're not actually a charity.
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Sep 23, 2009
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FoFai2015 wrote:
Mar 13th, 2018 11:17 pm
Social assistance income cannot be garnished, and neither can Child Tax. However I don't get going to post-secondary schooling and then not using that education to get a job.
Apparently you never heard of people who are career students and forego getting a job because then they would have to repay the govetnment.

They simply go and study something else when done a program. From what I have been told, being on OSAP used to be quite lucrative for a single parent with kids.

After 5 years of living off the government, how can they be expected to get a job that pays enough compared to what they are used to and be able to pay back the debt?

Got to love a social program that gives people too good a life.
Deal Addict
Oct 29, 2010
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OSAP repayment assistance only works in cases where you do what they ask you to do, so before the account defaults you suppose to talk to them and they will figure out minimum monthly payments and perhaps some grants to help you out.
In their book, once you stop communication (which is clearly the case) there is no more help anymore.
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Mar 23, 2008
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I’m curious... they may not be able to garnish government income, but what about bank accounts that the tenant might have?

C
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Mar 9, 2012
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FoFai2015 wrote:
Mar 13th, 2018 11:17 pm
You cannot use bankruptcy to avoid paying a student loan if it has been less than 7 years (5 years in some cases).

Social assistance income cannot be garnished, and neither can Child Tax. However I don't get going to post-secondary schooling and then not using that education to get a job.

Bankruptcy costs $200 per month, but isn't there a fee charged by the trustee? They're not actually a charity.
I believe $200/month includes all fee's. Depending on the situation, income, etc., the length of bankruptcy can vary.
Well, I am not a crook.
Deal Addict
Jan 2, 2015
1315 posts
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Toronto, ON
Looks like there's no "fee" for bankruptcy. (Well, a fee for $1,800, but paid over 9 months, so the $200 per month.)
CNeufeld wrote:
Mar 14th, 2018 12:36 pm
I’m curious... they may not be able to garnish government income, but what about bank accounts that the tenant might have?

C
Government income can be garnished. The laws concerning Ontario Works and Child Tax specifically prevent garnishing.

If all the money in the account came from those sources then the bank account cannot be garnished. However that gets messy, as funds tend to get comingled.
[OP]
Member
Feb 17, 2015
487 posts
131 upvotes
Windsor, ON
They seem to be ignoring the judgement at this point so I am going to advise them to switch bank accounts and hope nobody shows up trying to take her assets in her unit or even worse try to come near mine as I will glady get them off my property real quick, she only owns baby things a TV I found them on kijiji and some furniture which I am sure they cant seize, I as well went through the school debt trap back in the day and ended up in bankruptcy from it...however I did have almost 40K of Student LOCs credit cards which is why it was wrote off learned my lesson there now I work 3 jobs and get extra money anyway possible and hold 8 credit cards without any issues if I were to go back to school I would consider only borrowing half my tuition at most and make sure I am carrying no debt at the time on anything
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Mar 23, 2008
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mmikeman wrote:
Mar 15th, 2018 11:35 pm
They seem to be ignoring the judgement at this point so I am going to advise them to switch bank accounts and hope nobody shows up trying to take her assets in her unit or even worse try to come near mine as I will glady get them off my property real quick, she only owns baby things a TV I found them on kijiji and some furniture which I am sure they cant seize, I as well went through the school debt trap back in the day and ended up in bankruptcy from it...however I did have almost 40K of Student LOCs credit cards which is why it was wrote off learned my lesson there now I work 3 jobs and get extra money anyway possible and hold 8 credit cards without any issues if I were to go back to school I would consider only borrowing half my tuition at most and make sure I am carrying no debt at the time on anything
Did they already come and take away the punctuation keys on your keyboard?

And right... the government will be too dumb to figure out their bank account numbers, especially when they’re depositing government cheques into them...

C
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Oct 29, 2010
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hvwozq wrote:
Mar 16th, 2018 8:55 am
Why don't some idiots apply for repayment assistance plan? It takes only a few minutes. If you don't make enough money, you pay nothing. After 15 years, you owe nothing. No payments, no collections, no bankruptcy needed.
That only works if you communicate with OSAP.
Since they didn't, they will basically need to beg OSAP now but probably a good idea that they do...

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