Supreme Court of Canada clarifies treatment of student loan debt under bankruptcy law
Apr 17, 2025 | 9:08 AM
OTTAWA — The Supreme Court of Canada says a person must wait seven years after completely finishing their post-secondary studies before they may be released from student loan debt under the federal bankruptcy law.
The top court’s decision comes today in the case of a woman who received government student loans in the course of three university programs from 1987 to 2003.
She later returned to school and earned a master’s degree in 2009 without the help of additional student loans.
In 2013, she made a consumer proposal under the Bankruptcy and Insolvency Act, an alternative to bankruptcy that allows for payment of a portion of money owed, or payment over an extended period.
