A man in Brampton decides to sponsor his new wife and starts collecting his documents. His application comes back with a problem he had not thought about for years. A cousin he sponsored a decade ago had collected Ontario Works for a while. Nobody told him at the time, or if they did, the letter went to an old address. He now owes the province money, and until that is dealt with, he cannot sponsor anyone. This is a hypothetical, but its elements are common.
Two different legal ideas are often mixed up here. A sponsorship default affects the Canadian citizen or permanent resident who made a promise. Financial inadmissibility affects a foreign national applying to come to or stay in Canada. People use the terms as if they were the same, but the title of this article joins two separate rules, and the sponsor who is in default is not “inadmissible” by reason of that default. The practical effects can still overlap in one family’s file, and we will show how.
The following is general information and not legal advice. Federal and Ontario rules, policies, and forms change, so confirm the current position with Immigration, Refugees and Citizenship Canada (IRCC) and the relevant ministry. Quebec has its own system, which we do not cover here.
What the Sponsor Promised
Anyone sponsoring a family member signs an undertaking. It is a binding promise to provide for the sponsored person’s basic needs for a set period, and to repay any social assistance they receive during that time. The length depends on the relationship: three years for a spouse or partner, up to ten years for a child, and twenty years for a parent or grandparent, outside Quebec. A co-signer who signed the undertaking shares the responsibility.
The promise is not cancelled by divorce, an estranged relationship, a job loss, or the sponsored person’s becoming a citizen. Many sponsors feel this is unfair when they have separated from the person and no longer have any contact, and it may feel unfair. It remains the usual legal position.
When Default Begins and Ends
Section 135 of the Immigration and Refugee Protection Regulations sets out both ends of the timeline.
A default begins when a government makes a payment that the sponsor promised to repay, or when the sponsor breaches an obligation in the undertaking. So if Ontario pays social assistance to a sponsored person during the undertaking, the sponsor can be in default from that payment, whether or not the sponsor knew.
A default ends when the sponsor reimburses the government, either in full or under an agreement with it, or when the sponsor stops being in breach. The phrase “under an agreement” is worth noting, since Ontario’s published directive does not describe an instalment plan. If you cannot pay the whole amount at once, ask the collecting authority in writing what arrangements it will consider, and find out whether IRCC would then treat the default as ended.
How Ontario Finds and Collects the Debt
Ontario’s policy directive on sponsored immigrants gives a fairly clear picture of how this works for Ontario Works. A sponsored person may qualify for assistance when the sponsor is not meeting their obligations. They do not lose eligibility merely because the sponsor refuses to help. Any support a sponsor does provide is deducted from assistance dollar for dollar.
The usual process runs in stages:
- The sponsored person completes a declaration about their support.
- The ministry confirms with IRCC that an undertaking is in effect.
- IRCC generally sends the sponsor a warning letter, unless abuse has been alleged.
- Once assistance has been paid, the ministry writes to say a debt is growing and that the sponsor cannot sponsor while it exists.
- If there is no response within fifteen days, or support does not resume, the ministry confirms the default to IRCC.
- Once validated, the file goes to the Ministry of Finance for collection.
The amount is described as not negotiable. It covers all assistance paid while the undertaking was in force. A person who comes to you saying they can “settle” a sponsorship debt for a fraction of the total should be treated with care. Parallel rules exist for the Ontario Disability Support Program.
Federal law gives this debt unusual staying power. Under subsection 145(2) of the Immigration and Refugee Protection Act, an amount a sponsor owes under an undertaking is payable on demand and can be recovered by the federal Crown, by a province, or both, subject to any federal-provincial agreement. Subsection 145(3) says that a debt may be recovered at any time. Do not assume that a debt from long ago has expired just because of how much time has passed, as might be the case for an ordinary private debt under Ontario’s limitation rules.
If your last address on file is old, you could be the last to learn about any of this. If you sponsored a relative in the past and now live elsewhere in Brampton or Peel Region, you might want to find out where you stand before you file another application.
The Bar on Sponsoring Again
A default has an immediate effect on any future sponsorship. Under paragraph 133(1)(g) of the regulations, an officer can approve a sponsorship only if the sponsor is not in default of a sponsorship undertaking or a court-ordered support payment. A related paragraph deals with debts to the federal Crown, such as an immigration loan or a performance bond. The requirement applies from the time the sponsorship application is filed until a decision is made.
Family support arrears count just as much as a sponsorship debt. A person behind on child support collected through the Family Responsibility Office faces the same barrier. So does an undischarged bankrupt. If your support order no longer matches your income, the fix is not simply to wait. You may be able to seek a change to the order, and our child and spousal support page gives a general background.
Some sponsors feel they can simply wait until the undertaking period is over. That may not help. The undertaking may have ended, but the debt generated during it remains until it is repaid or otherwise resolved, and you still have to tell the truth about it on your application.
Family Violence and Other Exceptions
Ontario’s directive treats abuse and family violence with particular care, and it matters both to sponsored people and to sponsors.
A sponsored person who leaves a violent relationship does not have to chase their abuser for support as a condition of assistance. Ontario can grant a waiver, temporary or permanent, from pursuing support. Where abuse is alleged, IRCC registers the default but does not send the usual notification, and the ministry does not send warning or collection letters. The sponsor is still treated as in default and is barred from sponsoring, though debt recovery is not pursued. If you are a sponsored person in Peel Region and afraid of your sponsor, you should know that seeking assistance is not supposed to put you in further danger. Tell your caseworker about the abuse at the start. If you are in immediate danger, call 911.
Other situations can also lead to deferral of recovery. These include a sponsor who is incapacitated, a debt covered by a bankruptcy discharge, documented extraordinary circumstances, or a review of the undertaking by IRCC. Deferral can last up to 12 months where the sponsor’s circumstances are likely to change, and it is reviewed. The debt may continue to accrue during a deferral, and a deferral does not by itself end the sponsor’s default.
What Financial Inadmissibility Means
Now for the second concept. Section 39 of the Act says that a foreign national is inadmissible for financial reasons if they cannot or will not support themselves or their dependants, and they have not satisfied an officer that adequate arrangements for care and support have been made. Those arrangements must not involve social assistance.
Notice who it applies to: foreign nationals. A Canadian citizen cannot be made inadmissible for this. A permanent resident cannot be reported under this section either, because it refers only to foreign nationals. Being on social assistance as a permanent resident does not, in itself, put one’s status at risk under section 39.
Officers usually run into this ground in cases like these:
- A visitor who cannot show how a stay will be paid for.
- An economic applicant whose funds fall short or whose plan to support a family is thin, or who claims a job offer that does not hold up.
- A humanitarian and compassionate applicant who is relying on social assistance or whose finances are precarious. Subsection 25(1) of the Act allows an exemption from some inadmissibility grounds, and whether one is warranted is a separate question for the officer.
- A person who received an undertaking from a sponsor, where that promise has fallen through or is doubted.
How the Two Overlap
Family class applicants often have a sponsor’s undertaking as the answer to any question about support. For most, that is enough. A problem can arise, though, if the sponsor’s eligibility collapses. Here is what that looks like in a hypothetical family: a Brampton woman sponsors her husband. While the application is pending, an old default from an earlier sponsorship surfaces. Because she is not in compliance, the application cannot be approved, and the husband’s file is refused. Her appeal to the Immigration Appeal Division will then turn on whether she can fix the default and whether humanitarian considerations are open to her in the circumstances.
In other cases, the sponsor stays eligible but cannot meet a required income threshold. A parent sponsorship, for example, has a minimum income requirement, and an applicant whose sponsor falls short has not simply lost a formality: there may be no adequate support arrangement. Timing, co-signers, and a re-filed application can sometimes address these issues, depending on the type of sponsorship.
What to Do If You Receive a Letter
Your response can make a difference to how quickly you can get back on track. Try these steps:
- Read the letter closely and record the date, the amount, and who sent it.
- Respond within any stated period. Ontario’s own process moves after fifteen days.
- Ask for a statement showing the period and the amounts paid.
- Compare those dates against the start and end of your undertaking. Payments made outside the undertaking period should not be part of the debt, and a sponsored person’s citizenship does not end the obligation.
- Keep records of support you actually provided, including rent paid, groceries, bills, and transfers. These may matter if the facts are disputed.
- Do not ignore collection letters or pay a third party who promises to make the debt disappear.
- Get proof of any payment and ask how to confirm that IRCC has been notified. Ontario sends IRCC a form confirming repayment when the full amount has been repaid.
If your sponsored person is still in need, you may also want to consider resuming support, which might stop the debt from growing. Before any new sponsorship, confirm your status with the appropriate authority, in writing if you can, and keep the proof with your application.
Before You Sign Another Undertaking
Anyone planning to sponsor a spouse, child, or parent should do a short review first. Have you ever signed an undertaking, or co-signed for someone else? Is that period still running? Do you have support arrears or a bankruptcy that has not been discharged? Are you receiving social assistance for any reason other than disability? It is much better to answer these questions yourself than to have an officer do so a year from now.
If a default has already led to a refusal, or a family member’s application is in danger, our permanent residence page is a useful starting point, and you can contact Sawan Law House LLP about your circumstances. We cannot promise any particular outcome, but a clear picture of the debt and its dates is the first step toward resolving it.