2025-09-04
Will Bankruptcy Erase All Of My Debt?
Bankruptcy
The intention of Canadian bankruptcy law is to provide honest and overextended debtors the opportunity for a financial fresh start.
2010-02-24
Author: Bradley Milne
In November of 2007, the Manitoba government introduced new legislation called the Manitoba RRSP Protection Act. Under this legislation, RRSPs, deferred profit sharing plans and RRIFs were protected from the enforcement process. They are now exempt and as such cannot be liquidated in bankruptcy. The federal Bankruptcy & Insolvency Act was also amended in July of 2008 making RRSPs exempt.
There is some recourse for investigating transactions in the year prior to bankruptcy. For example, if you had $2,000 in a non-registered GIC and, before bankruptcy, moved it into an RRSP (that would be exempt) the Trustee may be able to reverse the transaction on the basis that it was done to evade creditors.
Someone with a large RRSP and a comparatively small amount of debt should not use the bankruptcy process to get rid of the debt while keeping the investment. This becomes a fairness issue and, in this case, the Trustee may consider making a court application to have some of the funds liquidated and/or a monetary condition paid into the bankruptcy estate.
2025-09-04
Bankruptcy
The intention of Canadian bankruptcy law is to provide honest and overextended debtors the opportunity for a financial fresh start.
2025-09-02
Lifestyle Debt Debt Solutions
You already know the many benefits of skilled money management. The fact you’re reading this blog post says at least that much. Your challenge, like for most households, is how to navigate the seemingly infinite demands on your frustratingly finite income.
2025-09-02
Lifestyle Debt
Have fun on a budget with our guide to affordable activities in Atlantic Canada.