Personal Bankruptcy & Future Access To OSAP

The Consequences of Personal Bankruptcy and Subsequent Access to OSAP in Ontario

In this article, we delve into the ramifications of declaring personal bankruptcy in Ontario and how it affects future eligibility for the Ontario Student Assistance Program ( OSAP ) funding. It’s important to note that each situation is unique and this article offers a general overview of the subject matter.

Personal Bankruptcy and OSAP Eligibility

Declaring personal bankruptcy in Ontario has direct implications for prospective or current students seeking assistance through OSAP. Once a bankruptcy claim is filed, the applicant’s access to OSAP becomes limited due to the financial instability indicated by the bankruptcy.

OSAP evaluates each application on a case-by-case basis, employing a credit check as part of the assessment process. As a result of this check, any record of personal bankruptcy remains on an individual’s Credit Bureau file for six years from the date of discharge. This consequently leads to a minimum blockage of seven years on OSAP funding. However, there is a possibility of submitting a credit appeal to the Ministry of Training Colleges and Universities (MTCU).

OSAP’s Role as a Creditor

When filing for personal bankruptcy in Ontario, it is necessary to report any debt owed to OSAP as they are considered a creditor in this situation.

Should the student be fully enrolled in a post-secondary program at the time of filing for bankruptcy, they may be eligible for additional full-time student loan assistance for up to three additional years. This is subject to review by the MTCU and is designed to allow the student to complete their current program. However, students are not allowed to switch programs during the bankruptcy period. The eligibility is only restored if the student manages to repay their OSAP debt in full.

The Appeal Process

In certain circumstances, an appeal can be made to the MTCU for access to OSAP funding. This process would involve submitting a credit appeal to the MTCU.

Required Documentation

When submitting an appeal to the MTCU, supporting documentation is required in two different situations:


  • If the student is discharged from bankruptcy in Ontario at the time of appeal, a letter confirming enrollment in the same program is required.
  • If the student is not yet discharged from bankruptcy at the time of appeal, they will need to provide a letter confirming their enrollment in the same program, as well as a letter from their Trustee in Bankruptcy. This letter needs to confirm that none of the money provided to the student will be used for paying off creditors.



In conclusion, declaring personal bankruptcy in Ontario does have significant implications for future access to OSAP funding. However, it does not completely eliminate the possibility of receiving financial aid. With the correct appeal and necessary documentation, students may still be able to receive some form of assistance. As always, it’s important to remember that each case is unique and will be evaluated on its individual circumstances.

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