Question: I have returned to school and I was wondering, will they garnish my payments toward tuition or will i be affected in anyway while attending school if i claim bankruptcy in Ontario?
I also was curious to know if rrsp could be used towards tuition as this site mentions rrsp are a good way to rebuild back your credit after claiming bankruptcy.
Answer: No, you do not lose your payments towards tuition if you are bankrupt. In most cases if you are getting a student loan, such as OSAP, while bankrupt in Ontario, OSAP will request a letter from your trustee confirming that the loan proceeds will not be seized.
Yes, you could cash in an RRSP if you are not bankrupt and use the money to pay your tuition, but remember that you may owe more in taxes next year as a result.
I also was curious to know if rrsp could be used towards tuition as this site mentions rrsp are a good way to rebuild back your credit after claiming bankruptcy.
Answer: No, you do not lose your payments towards tuition if you are bankrupt. In most cases if you are getting a student loan, such as OSAP, while bankrupt in Ontario, OSAP will request a letter from your trustee confirming that the loan proceeds will not be seized.
Yes, you could cash in an RRSP if you are not bankrupt and use the money to pay your tuition, but remember that you may owe more in taxes next year as a result.
Labels: bankruptcy, bankruptcy Ontario
posted by Questions @ 10:42 PM
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