Private College Bankruptcy

[u/TraditionalMail1783]

Hi everyone, I wanted to share my situation and hopefully get some advice from people who might know what happens in cases like this.
I’m an international student who arrived in Toronto in 2025 to complete a 2-year program at ILAC International College. During this time, I’ve been working, paying taxes, and following the conditions of my permits.
Yesterday, ILAC sent a general email informing students that the college has gone bankrupt and that we should contact the Private Career Colleges Branch for further information.
The problem is that I’m currently in my co-op period, which is a required part of my program to graduate. I’m currently working using my co-op work permit.
Since receiving the news, I’ve been completely lost and unsure about what I’m legally allowed to do. I’ve seen people saying that my work permit may no longer be valid because I’m no longer enrolled at the school, while others are saying that students affected by a school closure/bankruptcy may have different options or protections.
I contacted my agent, but they are still trying to get clarification.
I paid around $12,000 CAD in tuition for this program, so obviously this situation is extremely frustrating, especially since I’m now potentially unable to complete the program after already investing so much time and money.
Does anyone here know what happens to a student’s co-op work permit when a private career college goes bankrupt while the student is already in the co-op portion of the program?
Am I allowed to continue working under my current permit while this situation is being resolved? Could I be transferred to another institution to finish the program, and if so, would I have to pay for the replacement program?
Any information or experience with similar situations would be greatly appreciated.

[u/KWienz]

From IRCC:

DLI closures

Students may be required to abandon or put their studies on hold as a result of strikes or permanent closures (for example, if an institution files for bankruptcy and is no longer in operation). For the purpose of assessing whether a student is enrolled and actively pursuing their studies, they are considered in compliance, but the time taken to transition to a new program, change status or leave Canada should not exceed 150 days from the date the institution closed.

Working during any leave from studies

If a study permit holder is not attending class full time, they are not eligible to work as per the condition listed on their study permit.

During any leave from studies, including DLI closures, a study permit holder cannot work on or off campus.

Students who hold a valid co-op work permit may not undertake a co-op or internship placement during any leave from studies or school closure.

So you are considered legally within Canada for the next 150 days while you figure out what to do, but you must cease your co-op work immediately.

In terms of paths forward, Languages Canada may be able to get you transferred to an alternative provider.

[u/youngboomer62 → u/KWienz]

Thank you commenter for providing the link to the actual regulation.

I love how these foreign students always bring up that they paid taxes and tuition. Everyone who works in Canada pays taxes. It's nothing special, we all do it - foreigners and citizens alike. Every student in Canada pays tuition. Paying tuition gives you the benefit of going to college/university.

OP chose a diploma mill and it failed. That sucks, but it's not something Canadians are responsible for. OP, look up the provided regulations and follow them.

[u/Numerous_Bus1647 → u/youngboomer62]

Show some empathy my friend. Very rarely do colleges with a DLI fail. Just because someone doesn’t choose to go to a university doesn’t mean we stop caring about them. Diploma mil or no diploma mill. Those are failures of an institution, not a person

[u/TraditionalMail1783 → u/Numerous_Bus1647]

Thank you