July 22nd, 2013 by Questions

I am thinking about claiming bankruptcy and am researching it. I have a question, I have 60,000 in a locked-in rrsp. Is it possible they use this money to settle my debts? Would I still be branded as bankrupt if they do as technically I would have paid my full debt?

Posted from: Alberta


One Response to “MissD”

, A licensed trustee said:

Locked -in RRSPs cannot be seized in a bankruptcy – that’s one of the reasons they are called “locked-in”. You may be able to access some of the money in your RRSPs by applying under the hardship rules, but normally we advise against doing so. The purpose of the RRSP is to have some money later in life when you retire. If you use it now you obviously won’t have it later…

Contact a trustee in your area and they will explain all of this in greater detail.

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