New Zealand Law
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He cannot use the No Asset Procedure to cancel the debt as this cannot be used for student loans. But he can apply for bankruptcy, which is a more serious option, which lasts three years. This won't stop him travelling back to New Zealand although during the three years he would need to get consent to leave New Zealand if he came for a visit. This is because a bankrupt cannot leave the country without consent although he would get this if he explains he doesn't actually live here any more. It would be difficult to get the interest written off however as IRD don't have much discretion to write this off.