RRSP Cashed

Due to my wife’s loss of job i cashed RRSP’s and received net $5000 about a month ago. i paid various creditors monthly payments that i was in arrears and rent. I have about $1000 left from that.
Now i have been informed my job is about to be ended by end of Mar/31/07. My only option is to file bankruptcy as my debt is about $85,000. My surplus will be about $500 a month then in april i will go on EI – will i have to pay this $5000 back and if so how will i do it as my EI will only be $1800 or so a month. i filed bankruptcy once in 1991. Please help! You have a very informative website. Thanks

One Response to “RRSP Cashed”

Barton Goth, GCO Inc. Bankruptcy Trustees said...

This is a tricky issue and it all comes down to intent. If you can prove that you did not make these payments purposely, with intent to give the creditors in question a preference, then you do not have to worry. Being a very difficult issue to discuss with so limited information you would be best to contact a licensed trustee in your area.