Proposals and RRSP
April 18th, 2007 by Questions
I filed a 5 year proposal in January 2004. I have a small RRSP for $1200 (this is not my only RRSP). I would like to cash this in when it matures this November and put it towards the final 12 months of my proposal to pay it off a year early in January of 2008 instead of January 2009. I thought this would assist in cleaning up my credit report that much earlier. Is this a good idea or will the creditors in my proposal come after me for more money?? Any advice you can provide would be great.
Thanks a lot….
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April 20, 2007 at 3:53 am, Barton Goth GCO Bankruptcy Trustees said:
Paying the proposal quicker than required is always a positive thing to do. It will ultimatly allow you to start to rebuild your credit on a quicker basis and obtain the fresh start quicker than originally planned.
The only advice I have is remember that any monies withdrawn from an RRSP can result in taxes owing , so you may want to consider setting enough monies asside to cover this potential tax oblication.