RRSP loan

I have an RRSP loan from the insurance agency for less than 5 months now and my beneficiary is my sister. Now, i`m planning to do consumer proposal. What will happen to that loan?

Posted from: Ontario

One Response to “RRSP loan”

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

The RRSP loan is simply considered an unsecured debt that will be released by the filing of the bankruptcy.

However, under the current rules most contributions made to any RRSP’s within the 12 months prior to bankruptcy are not exempt. In other words, this RRSP will be liquidated as part of this bankruptcy.

Now this is a general rule, there can be a few exceptions, but you are best to contact a local trustee to determine if there are any exceptions that may apply in your circumstance.