Ever since the Ontario Ministry of Finance took over all immigration sponsorship debts in November last year, sponsors in Ontario are unsure what to do about their outstanding debts. This article briefly outlines current procedure and options for the sponsors.
- Sponsors are financially responsible for sponsored family members:
When Canadian citizens or permanent residents sponsor their family members for Canadian permanent residence, they are financially responsible for the sponsored family members for a number of years. This term, also called “length of undertaking” depends on the sponsor’s relationship to the sponsored family member. For instance, the length of undertaking for spouses is 3 years, but the sponsors are expected to financially take care of their sponsored parents for 20 years. Length of undertaking for Quebec residents is different.
Should the sponsee receive social assistance during the length of undertaking, the sponsor must pay back the money to the Government.
- Transfer of the sponsorship debts to the Ministry of Finance:
The sponsorship debts matter underwent significant changes in November last year, when all sponsorship debts were transferred to the Ontario Ministry of Finance. Before that it was the Ministry of Children, Community and Social Services (or MCCSS) that was in charge. The Ministry of Finance is now charging monthly interest rates, and that tends to make a lot of sponsors uncomfortable as their debts keep increasing.
It is important to bear in mind that, while the Ministry of Finance is currently handling these matters, the Ministry merely acts on behalf of MCCSS. In other words, if the sponsor believes that the debt amount was not correctly calculated, it will be MCCSS that the sponsor will have to deal with.
- Negotiating payment plans:
The Ministry is open to negotiating repayment plans, but sponsors would need to fill out a financial questionnaire and provide bank statements for the past three months, utility bills, mortgage statements, and other similar documents. If the sponsors do not initiate repayment plan negotiations, the Ministry of Finance will transfer the remaining debts to a private collection agency. This alone can badly impact the sponsors’ credit scores.