Is the money in rrsp account protected?

October 15th, 2008 by Questions

I am in deep trouble and I hope you can give me some professional opinion.
I am going to walk away from my debts because I have very little income and have no assest. I still have $9000 in my rrsp account in the same bank I owe money. Is the money in rrsp account protected ? Is it legal if I take the money out from this account? I hope I can keep the money in the rrsp acount as I am reitring soon.
I still have a car about $1500.- Can the creditor take my car or is the car protected or exempted from seizure.
Thanks for you help.
a B.C. resident

Posted from: British Columbia


One Response to “Is the money in rrsp account protected?”

, Barton Goth - Goth & Company Inc. - Bankruptcy Trustees said:

First let us deal with the RRSP. As long as the RRSP remains in the investment account (i.e. you don’t with draw it prior to bankruptcy) and the contributions have been made more than 12 months ago, then the RRSP is considered exempt. Meaning it is protected and yours to keep. But if you de-register this account, or withdraw the money prior to filing a bankrutpcy you loose the ability to claim these funds as exempt.

The car would also be exempt (protected) as it is below the amount allowable for a vehicle exemption in your province. At this point I would recommend you simply contact a local trustee to discuss the rest of the bankrutpcy process as I think you will find that the assets you are concerned about are exempt and it wil help you deal with the outstanding debt you are having trouble with.

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