RSP
I am $40,000 in debt and finally have admitted to myself I need to do something about it – so I have talked to a trustee and would like to do a proposal to the creditors – I do have $5,000 in RSP – if I put it towards my debt it really will be nothing after taxes. Is ther a way I can keep that without having to pull it out? Or do I have to surrender it. If I didn’t tell them about it what can happen?
If you do a proposal you are not required to liqudate this investment. However, you are required to provide more money to a creditors than would be available in a bankruptcy (and in a bankruptcy you would loose those funds). I recommend you discuss the possibility of framing the proposal to come primarily from monthly cash payments and allowing the investment to remain in place. If you trustee didn’t outline this possibility (which should have been explored), I recommend either going back to the trustee and asking him directly how this is done, or perhaps contacting another trustee for a second opinion. If you simply use the “Click on an Expert†link on the right hand side of the page you will be directed to a repeatable trustee in your area who should be able to help you frame the proposal in this fashion.