The short answer is “Yes”.
By definition, savings can consist of actual cash holdings, RRSPs and other investment products, pensions, and the cash surrender value of insurance policies. Your bankruptcy trustee will recover any non-exempt portion of your savings for the benefit of unsecured creditors at the time of filing.
Your bankruptcy estate is also made up of funds recovered by your trustee from:
non-exempt assets;
voluntary & surplus income payments;
income tax refunds; and
property acquired after your date of bankruptcy but before your date of discharge.
You should discuss these issues with your trustee prior to filing for bankruptcy to determine which assets are exempt or non-exempt from seizure.
Since assets are dealt with prior to filing for bankruptcy, the only other amount that remains to be calculated is surplus income. The Superintendent of Bankruptcy has guidelines outlining net monthly income thresholds for a person or family to maintain a minimal standard of living in Canada. Every dollar that a bankrupt family makes above the level set by the government is subject to a surplus income payment of 50% while a person remains bankrupt. Once the surplus income payments are satisfied, any remaining income can be used by the bankrupt person towards savings or other investment products.
If you’re curious, set up a free, no-obligation consultation with one of our licensed insolvency trustees to get more specific details of how your assets with be dealt with in bankruptcy.
