OSAP and Consumer Proposals
Does OSAP Impact My Consumer Proposal?
Short for the Ontario Student Assistance Program, it is a major component of many household financial considerations.
What many wonder is whether the OSAP will impact the consumer proposal – and vice versa.
As a provincially and federally funded program, there are special considerations to take when including this in your proposal.
In terms of bankruptcy, you must have been out of school for at least seven years.
If not, you are still fully responsible for making your payments.
However, if you have been out of school for over this time period, you can discuss with your Licensed Insolvency Trustee the options available to you for discharging the amount owing.
In situations where the student debt causes significant financial hardship for your family, they may be able to include it in your bankruptcy.
When considering consumer proposals, the matter is fairly similar.
You may be able to arrange for a newly negotiated payment schedule, provided the debtor is not constituent of a significant portion of your debt.
If they are, they are within their rights to veto the proposal itself.
Otherwise, if the majority of your other creditors accept the terms, the OSAP must adhere to those new terms.
Bear in mind that having either a bankruptcy or consumer proposal on file is sufficient to create issues when seeking the assistance of the OSAP.
If you wish to pursue further education and require them for funding, these proceedings can impede your success with the program.
However, if bankruptcy occurs during your studies, it is likely you can continue with your education, nonetheless.
To learn specifics, contact the OSAP directly.
They can outline for you specifics about repayment and any steps necessary for you to take before filing.
To learn more about how to proceed with the arrangements of bankruptcy and consumer proposals, speak with a Licensed Insolvency Trustee in Ontario.