New Bankruptcy Rules in Effect Starting July 7, 2008
Two changes became law this week:
Student loans now discharged after 7 years
If you have been out of school for 7 years and still can’t manage your student loans, they can now be included in a bankruptcy or a proposal. The old rule required you to wait 10 years.
Your RRSP is now protected
RRSPs are now exempt from seizure; this means you can keep them (except for any monies you invested in the last 12 months; this prevents people from abusing the system). Before this change, most RRSPs would have been seized by the trustee in a bankruptcy.
Questions?
These rule changes are significant. If you would like more information on how they impact you, contact one of our offices to schedule a consultation.
