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Breaking News: New Bankruptcy Laws Are Scheduled to Come into Force on September 18, 2009
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Student Loans Now Discharged After 7 Years
As expected, student loans will now be automatically discharged in a bankruptcy if you have been out of school for more than seven years, as compared to the previous ten year rule.
You Can Now Keep Your RRSPs
Under the new rules RRSPs are exempt from seizure in a bankruptcy. If you go bankrupt, you will be able to keep your RRSPs. The only exception is that you will lose any contributions you have made in the year prior to bankruptcy (to prevent people from "hiding" money in their RRSPs just prior to bankruptcy).
NOTE: In a surprising move, the federal government only implement these rules. There are many other new rules contained in the bankruptcy reform legislation that have not yet been proclaimed into force, but are scheduled to come into force on September 18, 2009.
For more details on the new laws, please contact a trustee in your area by completing the following form: