The bankrupt applied for a discharge from bankruptcy.
The trustee opposed the discharge, arguing that a $15,000 contribution made to the bankrupt's RRSP within 12 months of the bankruptcy was property divisible among creditors under section 67(1)(b.3) of the Bankruptcy and Insolvency Act.
The bankrupt had withdrawn approximately $15,000 from the RRSP shortly after making the contribution and prior to the date of bankruptcy.
The court held that section 67(1)(b.3) only applies to funds that are still in the RRSP at the date of bankruptcy.
Applying a 'Last In, First Out' (LIFO) approach, the court found the withdrawn funds were the recent contributions, meaning the remaining RRSP funds were exempt.
The bankrupt was granted a conditional discharge upon payment of a separate $9,400 bank account balance.
