Please enable javascript to view this page in its intended format.

Queen's University
 

OSAP Appeals

Reviews for Consolidation Orders (Orderly Payment of Debts Program)

 

Overview

Part X of the Bankruptcy and Insolvency Act, Orderly Payment of Debts (OPD), provides for a mechanism to facilitate the repayment of debts by a debtor. A court can provide a consolidation order allowing the debtor to make orderly payments to be distributed pro rata among creditors. Not all provinces and territories have implemented the OPD program, and it is not a debt management option for Ontario residents.

The effective date for a court-ordered Consolidation Order is the date of the Consent of Creditor letter plus one month.

Note: Consolidation orders issued for example, by credit counseling agencies, cannot be considered under this review unless the court has instructed a credit counseling agency to administer the file on their behalf.

 

Students Who Did Not Receive Student Loans Prior to the Date Filed for a Consolidation Order

If the Consolidation Order is complete, the student does not need to provide any supporting documentation in order for their OSAP application to be processed.

If the Consolidation Order is incomplete, the student’s OSAP application will not be processed until the student provides documentation indicating the date the student filed the Consolidation Order and that the following two conditions have been or will be met:

  • neither Ontario nor Canada is a creditor in the Consolidation Order as a result of financial assistance given to the student through OSAP; and
  • no financial assistance given to the student through OSAP during the current OSAP year will be seized to repay any creditor(s) listed in the Consolidation Order.

Documentation required:

1. A copy of the consolidation order under the BIA orderly payment of debts provision which includes the Consent of Creditor letter; AND,
2. a) If the consolidation order is complete, a Certificate of Full Performance; OR,
b) If the consolidation order is incomplete, a letter from the student’s Trustee in Bankruptcy confirming the date the student filed the consolidation order, that neither Ontario nor Canada is a creditor in the consolidation order, and that no financial assistance given through OSAP will be seized to repay any creditors listed in the consolidation order. 

     

    Students Received Student Loans Prior to Effective Date of the Consolidation Order

    Consolidation Order occurred prior to May 11, 2004 

    The student’s OSAP application will not be processed until: 

    • the student provides proof that they have no outstanding balance on any student loans; or the student provides a Certificate of Full Performance which proves that their obligations have been met and the debt is paid in full; AND
    • the student provides documentation indicating the date the student filed for the Consolidation Order and that the following two conditions have been or will be met:
      • neither Ontario or Canada is a creditor in the Consolidation Order as a result of financial assistance given to the student through OSAP; and
      • no financial assistance given to the student through OSAP during the current loan year will be seized to repay any creditor(s) listed in the Orderly Payments of Debt/Consolidation-Order.

    Documentation required:

    • A letter from the student’s financial institution, the National Student Loans Service Centre, and/or the student’s collection
    • Agency confirming that there is no outstanding balance on any of student loans issued to the student; A Certificate of Full Performance, if applicable; and
    • A copy of the consolidation order under the BIA orderly payment of debts provision which includes the Consent of Creditor letter

     

    Consolidation Order occurred on or after May 11, 2004 

    The student’s OSAP application will not be processed until the student provides proof that they have no outstanding balance on any student loans or the student provides a Certificate of Full Performance which proves that their obligations have been met and the debt is paid in full; or the student provides proof that they meet the following fourconditions:

    • when the student was issued a consolidation order, he or she was enrolled in an approved program of study at an approved institution and taking the minimum required course load; 
    • the student continues to be enrolled in the same approved program of study in which he or she was enrolled at the time that the consolidation order was issued;
    • the student has not had a break in studies of longer than six months since the date the consolidation order was sought; and
    • it has not been more than three calendar years since the date the student was issued the consolidation order.

    Documentation required:

    • A letter from the student’s FAO confirming that the program of study in which the student was enrolled at the time of the consolidation order was issued is the same as the program of study the student is applying for assistance to attend. (See notes: Bankruptcies Filed On or After May 11, 2004 Students who received student loans prior to the date they filed for Bankruptcy); and
    • A copy of the consolidation order under the BIA, including the Consent of Creditor letter.

     

    Examples of Supporting Documentation

    Note:  This list is not exhaustive

    Bankruptcy:

    • Notice of Bankruptcy and of Impeding Discharge of Bankrupt (Summary Administration)
    • In the Matter of the Bankrupt of [individual’s name] (Summary Administration)
    • To the Creditors of [individual’s name]: Notice is hereby given that the named filed an assignment in Bankruptcy on [date]
    • Section 170 Report – this document will provide the bankruptcy date but does not verify the student’s date of birth
    • Notice of Deem Taxation of Trustee’s Accounts and Deemed Discharge of Trustee (trustee discharge)
    • Certificate of Compliance and Deemed Discharge as Trustee or Administrator (trustee discharge)
    • Insolvency Name Search – Office of the Superintendent of Bankruptcy Canada (this search will provide the name of the student, birth date, bankrupt’s discharge status, practitioner’s (trustee) discharge status)


    Consumer Proposal:

    • In the matter of the consumer proposal of [individual’s name].
    • Notice to Creditors of Consumer Proposal
    • Notice of Meeting of Creditors to Consider Consumer Proposal (this does not mean that the consumer proposal was accepted)
    • Amended Notice to Creditors of Consumer Proposal
    • Status of Consumer Proposal – accepted/ rejected by the courts and/or the creditors
    • Consumer Proposal Deemed to be Annulled 
    • Certificate of Full Performance of Proposal

     

    Orderly Payment of Debts:

    “To All Creditors & The Debtor Orderly Payment of Debts Provisions being part of the Bankruptcy and Insolvency Act Enclosed, herewith is a Notice to Creditors advising of an application by the above named debtor for a Consolidation Order under the Orderly Payment of Debts Provisions of The Bankruptcy and Insolvency Act.” (These documents will include the Consent to Creditor letter).

    • Orderly Payment of Debts – Notice of Assignment
    • Orderly Payment of Debts – Notice of Motion “Granting the debtor continued relief under the consolidation order upon the ground that the debtor’s default in making payments on the order is due to circumstances beyond his control
    • Orderly Payment of Debts – Notice of Default: This from states the debtor is in default and the creditor is entitled to proceed forthwith independently of all other creditors and without reference to the Court, for enforcement of their claim under the Consolidation Order. Certificate of Full Performance.

    Kingston, Ontario, Canada. K7L 3N6. 613.533.2000