Will Going back to school affect my bankruptcy?

October 23rd, 2014 by Questions

Thank you for your time and consideration in answer my question. I currently claimed Bankruptcy last year after losing everything following the death of my husband. Following numerous health problems my doctor has recommended Disability. I have excepted this, however; as a nurse of 30+ years, i find it difficult to continue long term with this option. I have recently thought of returning to school, when I decide what would be an appropriate career. I am going to contact my trustee but wanted just a guideline in order to be aware of my options for discussion with them.
My question is; how would this affect my bankruptcy….I am current on Ontario works and widows pension. Thank you.

Posted from: Ontario

Questions

One Response to “Will Going back to school affect my bankruptcy?”


October 23, 2014 at 9:15 am, Doug Stuive, CA | Trustee | CIRP said:

While in bankruptcy you are able to enter into a school program without any issues arising in your bankruptcy. The only consideration would be financing the tuition. In bankruptcy you would not be eligible to receive a loan to cover this cost from a financial institution.

I would suggest you look into government assistance programs that specialize in helping individuals retrain to secure better employment when they are unable to complete the duties required in their previous field. If you are able to find assistance from these types of programs there would be no effect on the bankruptcy. These types of programs usually pay your tuition directly to the college or university and therefore the money would not form part of the income that you must declare to your trustee on a monthly basis. Also, the trustee should not be able to seize the funds for your creditors.

Any additional funds that you may be eligible to receive under these government programs to help you with living expenses during your studies would be declared as income to your Trustee on your budget sheets. With this type of income it is unlikely that it would affect your bankruptcy in any way as the total income per month would more than likely be under the surplus income guideline set by the bankruptcy government.

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