Unemployed divorced man getting collection calls – How We Helped
I spoke to a divorced man in his 40s who:
- had been out of work for a few months
- wasn’t able to make payments on his line of credit
- had one asset - an RRSP investment
- was getting a lot of calls from collection agencies
One of the collectors suggested that he cash-in the RRSP to pay his debt. Not wanting to do this, he called our office to see what options were available.
How we helped
First, I explained to him that most RRSPs are exempt (protected) from creditors. Even if he were to file personal bankruptcy he would be able to keep most, if not all, of his RRSP investment.
At our initial consultation we reviewed his:
- Due to no contributions within the past 12 months, his entire RRSP was exempt from seizure by creditors
Current income situation:
- Unemployed with no source of consistent income
Although this client really didn’t want to file personal bankruptcy, we agreed it was his best option - with no consistent source of income, he could not make consumer proposal payments.
Where is he now?
With our help, this man is on his way to becoming discharged from all of his personal debts AND he was able to keep all of his RRSP investment.
We can help you be debt-free too - contact us for a free consultation.