RRSP surrender.
If I want to do a bankruptcy and my RRSP ($6500) cannot be saved, what’s stopping me from just cashing it in and spending the money before I go bankrupt? Or can I take that money and buy a secured credit card with it as a reasonable step to help me when I have no credit?
There is no legal way to protect these funds.
If you cash the invest ments in and spend the money before you go bankrupt you will be required to repay the amount of the investment and it may result in you from being ineligible from discharge of that bankruptcy as you have purposily attempted to thwart the purpose behind the Bankruptcy and Insolvency Act.
Ultimately this same process happens if you take the money and put it into a secured credit card.
You are best to simply leave things how they currently are, contact a local trustee. If you do this you will avoid a number of potential problems and penalties.