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rrsp safe if I go bankrupt?

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?”

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.