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can we keep our car and what happens if have RRSP?

When filing personal Bankruptcy, can we keep our car and what happens if have RRSP? Please help. Thank you.

One Response to “can we keep our car and what happens if have RRSP?”

Doug Stuive, CA | Trustee | CIRP said...

When you file bankruptcy, you must turn over your assets to the Trustee for the benefit of your creditors except for assets that are exempt or secured. In the case of a vehicle, if you are still paying on a loan to purchase the vehicle (it would likely be considered secured by the lender who will have registered a lien against it), you may be able to keep it if you continue making the payments. If the vehicle is not secured (there is no loan registered against it), then it will be considered as exempt pursuant to Ontario’s laws up to a value of $5,650. An RRSP is considered exempt in whole or in part depending on who the RRSP’s are registered with and/or whether or not you’ve make payments into it during the 12 months prior to a bankruptcy. In either case, the Trustee can advise you of the rules which apply to your unique situation. Please contact the trustee listed for your area and they can help with any further questions you may have or meet with you for a free consultation to discuss your situation.