Ottawa-based insolvency trustee advises some student loan holders to consider bankruptcy

March 15, 2017

It has become commonplace for PSE graduates across Canada to pay off their student loans into their 40s, reports Anna Sharratt for the Globe and Mail, and the trend has at least one insolvency trustee advising young Canadians to consider declaring bankruptcy. Allen MacLeod tells the Globe that a person’s credit rating is only impacted for six years after a bankruptcy, while the struggle of paying off a student debt can last for over a decade. He adds that if someone finds that they are not able to pay down their student debt, “there’s no use having a great credit rating if you can’t service your debt.” That said, MacLeod notes that the option to file bankruptcy is not available once a person acquires assets, and he lays out a number of different tips for those struggling to pay down student debt. Globe and Mail