At long last, there was an important proclamation made yesterday that will protect RRSPs from creditors should you become bankrupt.

The federal government yesterday passed Bill C-12  into law, which allows bankrupt Canadians to keep their RRSPs, except for contributions made in the year before declaring bankruptcy. 

This has been a long time coming, and something I feel is important to many clients, especially those who are self-employed, or who do not have a pension plan.  This also allows investors to not be forced to use segregated funds in their RRSP, often at higher cost, simply to have creditor protection.