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Cashing RRSP

I have an RRSP with a bank. It is worth about $10,000. I think I`ll need to declare bankruptcy or make a consumer proposal soon.

I have some friends who work for the bank, and I don`t want them to know about my financial problems. I have no other products with the bank.

Could I cash the RRSP and put the money in an account elsewhere and not touch it, so the trustee will still have access to all the funds that were previously held in my RRSP? (I won`t spend any of it.) Will this make my creditors or the trustee unhappy?

Also, if I keep the money in the RRSP and the trustee needs it to distribute to my creditors, can I arrange to cash the RRSP and give the money to the trustee myself, or will the trustee always send a letter to the bank to seize the assets?

Thank you.

One Response to “Cashing RRSP”

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Barton Goth GCO Bankruptcy Trustees said...

Either of these strategies will work just fine for most trustee’s, but make sure that when you meet you have a clear discussion about these funds.

However, the way to reduce the liklihood of your friends at the bank finding out is to simply cash them now and keep them in a separate account. As long as you don’t spend any of the proceeds and can demonstrate that all the money is still intact and the investment is liquidated you won’t have any troubles.