RRSP Creditor Protection

First Published: ADawnJournal.com October 4, 2009

In the past, insurance investments such as Segregated funds (whether being held in a registered or non-registered account) and registered pension monies were provided creditor protection in case of bankruptcy.

Starting July 7, 2008, Bill C-12, an amendment to the federal Bankruptcy and Insolvency Act, extended the same creditor protection to all registered investments such as RRSPs, RRIFs, DPSPs. RRSPs and other registered investments as mentioned above are now exempt from seizure or claims of creditors in case of bankruptcy. Remember, this exemption may not apply to contributions made within a 12-month period prior to bankruptcy.

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