ILAC FILES FOR BANKRUPTCY: YOUR NEXT STEPS IF YOU'RE AN AFFECTED STUDENT
The International Language Academy of Canada (ILAC), one of the country's largest private language schools, filed for bankruptcy and abruptly ceased operations on September 18, 2026, cancelling all classes at its Toronto and Vancouver campuses without warning. More than 1,362 students were affected — some on study permits, and reportedly many on visitor status, since ILAC's shorter English courses don't always require a study permit. Whichever category you fall into, what you do in the next few weeks matters. Here's a clear, step-by-step guide to your options.
Step 1: Get Placed Through the Official Channels First
Before searching for a new school on your own, check here. Languages Canada, the national language-education association, is actively working to place displaced ILAC students into comparable programs at other accredited schools, and has posted an official statement with ongoing updates:
● Languages Canada – Statement on ILAC Closure
● ILAC – Official Community Message
A placement through Languages Canada is typically the fastest way to keep your studies moving without a gap in your program — which also helps protect your immigration status, since a gap in study can raise compliance questions later.
Step 2: If You Need to Switch Schools — Protect Your Study Permit First
If you hold a study permit, this is the step most students get wrong in the rush to find a new school: you generally cannot simply start studying at a new institution. Since November 8, 2024, study permit holders must remain enrolled at the designated learning institution (DLI) named on their permit, with limited exceptions. In most cases, you need to apply for a new study permit naming your new school before you begin studying there.
● IRCC – Changing your school or program — confirms exactly which process applies to your situation
Don't assume your situation is standard: Given how abruptly ILAC closed, your circumstances (in-progress permit, primary/secondary enrolment, joint program arrangements) may follow a different rule than the general case. Confirm your specific requirement before enrolling anywhere new — getting this step wrong can put your status at risk.
Step 3: If You're On Visitor Status, or Thinking About Extending Your Stay
If you were taking a short course on visitor status rather than a study permit, your options — and your deadline — look different. Whether you're planning to continue studying, or simply want more time in Canada to sort out next steps, you'll generally need to apply before your current authorized stay expires:
● IRCC – Extend your stay in Canada as a visitor — if you want more time without starting a new program
● IRCC – Extend your study permit or restore your status — if you're moving into a new study program and need a study permit for the first time or an extension
If your permit or authorized stay has already expired, you may still be able to apply to restore your status, but only within a limited window and only if you stop studying or working until it's approved. Don't let this deadline pass while you're focused on finding a new school — the two processes can and should be handled at the same time.
Step 4: Look Into a Refund — But Manage Your Expectations
Check your eligibility for a refund through Languages Canada's Student Education Assurance Fund, the mechanism built specifically for closures affecting its accredited member schools. KPMG Inc., appointed as ILAC's licensed insolvency trustee, will also issue formal creditor and proof-of-claim notices as part of the bankruptcy process itself — watch for those directly from KPMG.
Be realistic about the amount: None of these refund mechanisms are automatic, and full reimbursement is not guaranteed — Languages Canada's own published plan allows for only partial recovery of unearned tuition in a high-volume claims situation like this one. Confirm your specific coverage directly rather than assuming a fixed amount.
Step 5: While You're Making a New Plan, Check Whether You're Already Closer to PR
Here's something worth doing before you commit to your next program: get an honest read on where you actually stand for permanent residence. If you've gained Canadian work experience — through a part-time job while studying, a previous work permit, or family already established in Canada — you may have Express Entry or provincial nomination options open right now, independent of whichever school you choose next. A forced pause like this one is exactly the moment to ask the question many students otherwise leave until much later.
Affected by the ILAC Closure? Let's Map Out Your Next Steps Together
Are you trying to figure out which school to choose, whether you need a new study permit or a status extension, or whether you might already qualify for permanent residence? The decisions you make in the next few weeks — which program you enrol in, how you handle your status, whether you check your PR options now or later — will shape your path for years, and getting personalized guidance now costs far less than fixing a mistake later.
At Global Opportunities, we help affected ILAC students confirm their study permit or visitor status options, choose the right next school without risking their status, and check whether they qualify for permanent residence today. Contact us today to get a clear, personalized plan before you commit to your next step.
Sources: ILAC official closure notice (ilac.com/community-message); Languages Canada, official statement on the ILAC closure (languagescanada.ca); Immigration, Refugees and Citizenship Canada, official guidance on changing schools, extending a study permit, and extending visitor status (canada.ca); reporting from The Globe and Mail and CBC News on the September 18, 2026 closure.