pension beneft

March 15th, 2007 by Questions

I recently quit my job after 7 years and moved to a different town. I am considering bankruptcy or a consumer proposal but today I received in the mail an option to either have my pension paid out or transferred to an RRSP. If I decide to cash it out BEFORE I file for bankruptcy or consumer proposal, can they come after me for the money? Also, if I decide to transfer it to an RRSP, can they take it as well? Not sure what to do, please help.


One Response to “pension beneft”

, A licensed trustee said:

If you accept the payout instead of the transfer you will be required to provide your trustee with a detailed accounting of what you did with the money. If your trustee deems an expenditure to be inappropriate then you will probably be required to pay an amount equal to the item to your trustee. It is therefore possible that you might have to repay the entire amount, depending on what you do with it.

The RRSP is a safer route, but has some risk too. Make sure you speak to your insurance agent and banker before you make your investments – tell them that you may have to file so they may give you the correct advice.

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