RRSP`s in Bankruptcy

October 29th, 2010 by Questions

I know that RRSP investments are exempt except for amounts invested in the year prior to the bankruptcy. Do you disclose all your investments to the trustee at the time of filing? Does the trustee contact the financial institution to have any eligible investment sent to them for distribution to the creditors? Is it necessary to disclose any investments held prior to 12 month? Thank you.

Posted from: British Columbia

Questions

One Response to “RRSP`s in Bankruptcy”



, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

Yes, you must disclose all your investments to the trustee upon the filing of a bankruptcy or a consumer proposals. This is for two reasons:

1. It is legally required and to fail to disclose something would be considered fraudulent; and

2. You don’t automatically get to claim property as exempt, if you don’t list the property and physically claim it as exempt you are not permitted the exemption.

So as you can see it is in your best intersts to disclose these items.

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