Every day at Welker & Associates, we field questions about whether or not people can keep their car when declaring bankruptcy. Terms like thresholds, equity and wholesale value get thrown around, and it can be confusing for people in an already complicated situation.
With the deadline to conribute to RRSPs looming (it's on March 1, 2018), it's a good opportunity to talk about how bankruptcy affects your RRSPs. Here's some good new: RRSPs are exempt assets!
Since the Bank of Canada raised interest rates in July, it was only a matter of time for this to start impacting debt in Canadian households.
There is no clear pattern for how people find themselves in financial difficulty. It can happen suddenly through injury or illness, separation or divorce, or it can be due to not knowing how to manage your finances effectively.
With a consumer proposal, you get to keep your assets, which includes your tax free savings account and your RRSPs.