Bill C-410 (Historical)

An Act to amend the Bankruptcy and Insolvency Act (property of bankrupt — exclusion)

This enactment amends the Bankruptcy and Insolvency Act to exclude property in a registered education savings plan and a registered disability savings plan from the property of a bankrupt.

Bankruptcy and Insolvency Act

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

moved for leave to introduce Bill C-453, An Act to amend the Bankruptcy and Insolvency Act (property of bankrupt — registered education savings plan).

Mr. Speaker, previously in this Parliament, I submitted a bill, Bill C-410, that would protect registered education savings plans and registered disability savings plans when someone declared bankruptcy. This was a good bill that was supported by many stakeholders. Clearly, the government agreed, because it took my idea of protecting RDSPs and put it into its last budget implementation act. Unfortunately, it did not afford RESPs the same protection, so I am happy today to table a bill to address this significant oversight.

RESPs deserve the same bankruptcy protection now afforded RDSPs. Parents deserve peace of mind that the money they set aside for their children will be protected if they experience financial difficulties. Entrepreneurs are often asked to put up their homes as collateral for a business loan. They should not have to sign up their children's RESPs as well.

As we continue to face a rapidly changing innovative and disruptive economy, we must ensure that laid off workers who have put their hard-earned money into their children's education savings plans are protected. I urge the government to feel free to steal this idea once again, as parents really do need help.

(Motions deemed adopted, bill read the first time and printed)

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

moved for leave to introduce Bill C-410, An Act to amend the Bankruptcy and Insolvency Act (property of bankrupt — exclusion).

Mr. Speaker, today I have the honour of tabling a bill that I believe will provide necessary clarity and reassurance for the hard-earned savings of Canadians. I would also like to take the time to thank the member for Edmonton Riverbend for seconding the bill and note the tireless work he does on behalf of his constituents.

This bill would enact a simple change. Currently, when a Canadian files for bankruptcy or insolvency, their RRSPs are protected from creditors. However, there are no such protections for registered education savings plans and registered disability savings plans. The bill would amend the Bankruptcy and Insolvency Act to exclude the property in RESPs and RDSPs from a bankruptcy. It seeks to give clarity to those. Savings are not vulnerable accounts. The money Canadians put into these accounts to save for their children's education or for the highs costs of caring for a family member with a disability is off limits to creditors.

This bill is in large part a way of remembering the legacy of the late Hon. Jim Flaherty and his efforts to create the RDSP and RESP.

I would also like to thank the MPP-elect for Ottawa West—Nepean, Jeremy Roberts, for his work on preparing the bill.

I hope the bill will be supported by all members of this place. The amount of support and feedback from all colleagues and stakeholders has certainly been a motivation to me to see this become law.

(Motions deemed adopted, bill read the first time and printed)