rrsp safe if I go bankrupt?
December 29th, 2005 by Questions
I have been self-employed for over 15 years and through out those years i managed to save about $75 000 in RRSP (segregated fund, insurance company with my daughter as beneficiary). I have become ill in the last year, and I am forced to close my business as i can no longer work or afford to pay someone to replace me. I sold my home about 2 years ago and have been living off that money. I owe about $80 000 to unsecured creditors. If i cashed in my RRSPs i still would not have enough after taxes to pay off my debt. I think going bankrupt is the best option for me, but will i lose my RRSPs?
One Response to “rrsp safe if I go bankrupt?”
Please post a follow up comment below:
(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)
You must be logged in to post a comment.
December 30, 2005 at 8:17 am, A licensed trustee said:
If your RRSPs are in a segregated fund with an insurance company and your daughter as a named beneficiary they are probably exempt from seizure in a bankruptcy. However, we recommend that you have a personal bankruptcy trustee review your RRSP documentation prior to filing bankruptcy to confirm that your RRSPs are exempt.