Are RRSP’s exempt from seizure in bankruptcy?.
May 6th, 2015 by Questions
I have an RRSP, which was my wife’s who passed away in 2012. I have been an undischarged bankrupt since 2002. My Licensed Insolvency Trustee himself was recently discharged from my file. I have just received a letter from CRA claiming taxes are owing from before my bankruptcy. Can the CRA seize this RRSP which is now in my name, or are RRSPs exempt from seizure in bankruptcy?.
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May 06, 2015 at 8:40 am, Jillian Taylor-Mancusi, Trustee | B.A. | C.I.R.P said:
RRSP’s are exempt from seizure in bankruptcy depending upon which province you are in, the RRSP can be entirely exempt or the portion that was created in the twelve months prior to bankruptcy can be subject to seizure. In that your trustee was discharged and you remain an undischarged bankrupt your creditors are able to pursue you again, which is likely why you received the collection letter from CRA.