Did you know that when declaring bankruptcy in Ontario that RRSP contributions made more than 12 months ago are exempt from seizure? That’s right, even after declaring bankruptcy you get to keep all of your RRSPs except those contributions made in the 12 months preceding your bankruptcy. Even then, you can opt to keep all of your RRSPs by paying your Trustee the amount that you contributed in the last 12 months.
None of your assets are surrendered when filing a consumer proposal, so those considering a consumer proposal can rest assured that their RRSPs and retirement plan remain intact.
People are often surprised to learn that you can keep your house when filing for bankruptcy as well. Learn more by reading our blog post on this topic here.
Bankruptcy isn’t meant to take the shirt of your back, prevent you from rebuilding your credit, or endanger your retirement. Numerous assets are exempt from seizure in Ontario including:
Vehicle equity up to $7,117 (eg. $50,000 vehicle with a $43,000 loan against it is exempt);
Unlimited necessary wearable clothing and apparel;
Furniture and appliances worth less than $14,180; and
Tools of the trade worth less than $14,405.
To learn more about bankruptcy or consumer proposals, visit our service pages, send us an email, or give us a call. We love to hear from you and offer free, no-obligation consultations via telephone or at any one of our conveniently located offices throughout Ontario. What are you waiting for? You’ve got nothing to lose except your debt.