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Exempt Assets in Consumer Proposals

What assets are exempt when a Consumer Proposal is filed in Ontario? I have read that retirement pensions such as RSP’s are exempt… but are RIF’s and LIF’s exempt as well?

Posted from: Ontario

One Response to “Exempt Assets in Consumer Proposals”

A licensed trustee said...

You may be confusing a couple of different things here. When you file a consumer proposal none of your assets are seized and/or sold – the concept behind a consumer proposal is that you offer to repay a portion of your debt so that you don’t have to lose any of your assets.

That being said, the amount you have to offer to repay when you file a consumer proposal is based on your incme and the things that you own. So while you don’t lose your assets their cash value will impact how much you have to pay back.

RIF’s and LIF’s get factored in at their cash value – assuming you have the right to collapse or cash them out. In most cases you don;t have that right so they have very little value.