Because of recent changes to the bankruptcy legislation, registered retirement savings have some protection from creditors if you go bankrupt.
Amendments to Canada's Bankruptcy and Insolvency Act mean that for bankruptcies occurring after July 7, 2008 creditors can no longer go after your Registered Retirement Savings Plans (RRSPs), Registered Retirement Income Funds (RRIFs) or Deferred Profit Sharing Plans (DPSPs) to pay off owing debts.
In the past, only some investments such as certain segregated funds and pension funds were protected from creditors. Now, you don't have to worry that all your retirement savings will be lost if you go bankrupt. However, to prevent intentional protection of funds, any money put into registered plans in the 12 months before a bankruptcy (or longer) may not be subject to this new rule.
4 comments:
This is great news for people.
If you would like to read all of Harper's accomplisments, you can here.
http://jacksnewswatch.com/2008/04/20/sandy-harper-govt-accomplishments/
I wouldn't post this on many blogs here, but you seem to be normal and not overly partisan, so I think its only fair you see what Harper has done, and then you decide yourself.
I sure you already have, but at least you can see for yourself.
J, fair enough. There is no doubt that there have been some good things out of this government. !ill 9-2 comes to mind as well as this amendment to the BIA. ;
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You state --
"any money put into registered plans in the 12 months before a bankruptcy (or longer) may not be subject to this new rule"
I guess by putting "(or longer)" in there -- and using the words "may not" -- this is the lawyer coming out in you?
Or not?, the law is very clear. The answer is not! Your funds are protected after 1 year.
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