Money in a RRSP, RIF or a deferred profit sharing plan will no longer be available for distribution among a bankrupt’s creditors. Any contributions made in the 12 months before the date of the bankruptcy are subject to a claw back. Where provincial legislation exempts RRSPs from execution, the provincial legislation will apply.
Student Loan Debt
The amendments reduce the period of time from ten to seven years that a student must wait after ceasing to be a full or part-time student before a discharge order will release a student loan debt or obligation. The “hardship provision” which allows for an application to have student loans discharged can now be made after 5 years.