http://www.bankruptcy-canada.ca/bankruptcy/2007/12/secured-creditor-2.html Personal Bankruptcy Canada Blog Fri, 10 Feb 2012 15:23:44 +0000 hourly 1 http://www.bankruptcy-canada.ca/bankruptcy/2007/12/secured-creditor-2.html#comment-15381 Barton Goth GCO Bankruptcy Trustees Mon, 31 Dec 2007 14:35:13 +0000 http://www.bankruptcy-canada.ca/bankruptcy/2007/12/secured-creditor-2.html#comment-15381 Definitely, what you would have in essence done is convert a non-exempt asset into an exempt asset and this would not make the creditors very happy. The result could be different depending on whether you file a proposal or a bankruptcy, and at the very least you would likely have to repay all the funds from the RRSP into the bankruptcy or proposal. So you are better off to keep things as they are and simply go the bankruptcy or proposal route. You shouldn’t find much risk of loosing your vehicle (assuming you are current on your existing payments). Definitely, what you would have in essence done is convert a non-exempt asset into an exempt asset and this would not make the creditors very happy. The result could be different depending on whether you file a proposal or a bankruptcy, and at the very least you would likely have to repay all the funds from the RRSP into the bankruptcy or proposal.
So you are better off to keep things as they are and simply go the bankruptcy or proposal route. You shouldn’t find much risk of loosing your vehicle (assuming you are current on your existing payments).

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