When you file a consumer proposal you are able to keep ALL of your assets.
This includes any amounts that you have invested in an RRSP or TFSA account. When you make a consumer proposal, you are offering your creditors a settlement, which is more than what they would get if you were to go bankrupt.
Essentially you are saying, “let me keep all of my stuff, and I will agree to pay you some amount of money over time.”
If you were to file personal bankruptcy you would be able to keep most, if not all of your RRSP.
Not all tax shelters are safe when filing personal bankruptcy, but here are a few details:
RRSP accounts are exempt from seizure by creditors in a bankruptcy, except for contributions made in the 12 month period immediately prior to filings
Some RRSP accounts are completely exempt
TFSA accounts are not exempt from seizure by creditors under any circumstances in a bankruptcy so you would lose your TFSA
You can find more information here.
When you meet with us – you will always meet with a licensed trustee in bankruptcy at NO charge.
We have offices across South Western Ontario plus flexible hours to meet your needs so you don’t have to miss work.
Let us help you get a fresh financial start!