Consumer Proposal – RRSP

I understand that to be eligible to file a consumer proposal you:
– Must be a person (businesses may not file consumer proposals)
– Must be insolvent
– Must have total debts (excluding the mortgage on their principle residence) of less than $75,000

Would I be considered insolvent if I have $50,000.00 in an RRSP?

Also, I have car loan – $25,000.00 on a car worth $30,000.00 can this be brought into the Consumer Proposal?

Posted from: British Columbia

One Response to “Consumer Proposal – RRSP”

Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

As long as your RRSP contributions have not been made in the last 12 months then you shouldn’t have any problems. As of July 7, 2008 RRSP’s (except for contributions made in the last 12 month period) are exempt and therefore not impacted by a bankruptcy or proposal.

In terms of the car loan, the only way you can clear yourself of a car loan is if your return the vehicle prior to filing the proposal. As long as you retain the vehicle you cannot include the debt and be cleared from it.