New bankruptcy rules were brought into force this week that will have a significant impact on people filing bankruptcy in Toronto. Two changes became law this week:
Student loans now discharged after 7 years
If you have been out of school for 7 years and are still struggling with your student loans, they can now be included in a bankruptcy or a proposal. This rule was amended from the 10 year waiting period.
Your RRSP is now protected
Under the new rules, RRSPs are exempt from seizure; this means you can keep them (except for contributions made in the 12 months prior – this prevents people from abusing the system). Under the old rules most RRSPs would have been seized by the trustee in a bankruptcy.
Questions?
These rule changes are dramatic. If you’d like more information on how the changes to the laws impact you, send us an email, or call us at 310-PLAN to schedule a free, no obligation consultation.
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