Free Consultation


I am considering filing for bankruptcy due to substantial student line of credit and OSAP debts. The new bankruptcy law changes the 10 years rule to 7 and it also adds the 5 years hardship clause. My OSAP loans are 5 years old now. My questions are:
1) If the new law takes effect after I file for bankruptcy but before I get discharged can the new law regarding the 5 years law apply to me?
2) If I am in bankruptcy, is it going to affect my spouse when she applies to OSAP?
3) Is the bankruptcy also going to wipe overpayment that I received from OSAP?
Thanks in advance for your response.

One Response to “OSAP”

A licensed trustee said...

Unfortunately, until the new law is enacted there is no way to be certain it will contain a retor-active component – it has been suggested that it will, but until I see it is in place, no one can guarantee it will be available.

Your filing (of bankruptcy) should not affect your spouses eligibility – you should have this conversation with the financial aid officer at the school your spouse is going to attend.

You’ll need to discss the overpayment with whatever trustee you are using to file – it’s too complicated for a quick answer on a website.