Can you use An RRSP to pay off Debt?

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Using RRSP  to Pay off Debts

If you have a sizeable debt load and are looking for some ways to have that debt reduced or paid off, you may be wondering if you could use your RRSP to pay off your debt. You may also be thinking, should I really use my RRSP to pay my debt?

Before Cashing in

Before you rush into cashing in your RRSPs, you need to consider all of your options available. You need to see if you are insolvent or not. If you are insolvent, you then may qualify for a government program. Getting the full facts before making this big decision can help you make a better informed decision for you and your family.

Avoiding Bankruptcy

This government program can help you avoid bankruptcy. Avoiding bankruptcy lets you keep your assets such as your home (mortgage payments) and car (auto payments), providing you keep up on the payments for each of these. Your unsecured debts are paid at a reduced rate into a monthly payments that is more controllable. Note, only contributions that have been made to RRSPs/RIFFs 12 months before filing, may be clawed back.

Consumer Proposals

This government program is call a consumer proposal. With a consumer proposal, your unsecured creditors are paid at a reduced amount. A proposal cannot be longer than five years. After this is completed, the individual is then released from the unsecured debt that was covered in the accepted proposal.

The Bankruptcy and Insolvency Act (which governs proposals) is designed to help protect people that are in financial distress, and helps people keep their RRSP and RIFFS. RRSPs/RIFFs 12 months before filing, may be clawed back.

Find Out More

Consider all your options before cashing in your RRSP to pay down your Debts. If you live in the Toronto Area, call us at 416-498-9200 to book a free consultation. During your consultation, we will review your finances in detail and go over all of your options for getting out of debt – in a professional and supportive environment.

 

 

Take Your First Step Towards A Debt Free Life

If you are overwhelmed by debt, call us at 1-844-962-9200 to book a FREE, confidential appointment. We will review your financial situation in detail and discuss all of your options with you. Alternatively, you can fill out the form below and our team will reach out to you. 

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Great experience i was in financial trouble and someone of my friends recommended this company. Cori is a wonderful and welcoming person she did a very good job and came up with a smooth and flexible monthly payment after the reduction. i highly recommend this company. Thank you David sklar and special thanks to Cori.❤️🙏🏻
Jasmine Joseph
22:08 13 Jan 23
Met up with Mr. Jason Sklar to discuss more in person, very thorough and clear. He is very kind and thoughtful, I will be referring anyone with the same situation to David Sklar & Associates.
Ariel Domingo
02:33 29 Dec 22
I was a reck talking yo Jason Sklar was easy comfortable he explained everything and put my mind at ease I would recommend the team od sklar to everyone. I have already talked to my ci workers about them
kevin mcweeney
01:13 22 Dec 22
The team at David Sklar & Associates is fantastic.I worked with Jerry whom not only made - what seemed like intimidating process to initiate at first - comfortable.He made everything transparent and took the time to explain the process every step of the way.He was kind, attentive, and professional. Everything was made straightforward and stress free and we found a solution together that worked.Thanks to Jerry and the team.
Jordie Angiolillo
18:22 21 Dec 22
From day one till the end which is today😁 DavidSklar gave me a 5star service and treatment. And I will 100% recommend him and his Associates. This is the best Christmas present ever! Thank you David! More business to come! Merry Christmas and a Happy New Year!!!
barbee diaz
16:37 16 Dec 22
I FOUND DAVID SKLAR & ASSOCIATES BY GOOGLING "BANKRUPTCY" (EARLY NOV. 2021). ON NOV.4, 2021 I HAD A MEETING WITH CORI NARON AT HER OFFICE AT ST CLAIR ANDBATHURST. HER POSITIVE APPROACH TURNED ASTRESSFUL SITUATION INTO A STEP BY STEP UNDERSTANDABLE PROCESSON SEPT. 23, 2022 I OBTAINED MY AUTOMATICDISCHARGE FROM BANKRUPTCY AND MY CERTIFICATE OFDISCHARGE.THANK YOU CORIBRUCE BURGESS
bruce burg
21:35 02 Dec 22
Jerry was wonderful and provided superb service. He is very knowledgeable, trustworthy, and made an intimidating and shame filled time in my life stress free. I hesitated for a long time to take the next step, but Jerry answered all questions, was patient and made the process effortless. I am eternally grateful, and highly recommend Jerry’s services.
M J
18:41 01 Dec 22
Jerry was professional and was easy to deal with
Debbie Asquith
00:09 29 Nov 22
I was quite nervous and a little embarrassed that I needed financial advice. I met with Jerry Janiec and he was very helpful. He made me feel comfortable and explained everything in easy to understand terms so that I understood what my options were. I would recommend David Sklar & Associates for anyone in my position.
Melissa Blackburn
19:53 17 Nov 22
I was fortunate enough to be referred to David Sklar & Associates Inc. by a family member. Now in the10th month of a Consumer Proposal process, I am very impressed with the organization, professionalism and impeccable customer representation that I have experienced. To this effect, I amparticularly thankful to Jerry Janiec and Rhoda Lewis for their excellent work.
Suzanna Vaclavik
12:21 16 Nov 22
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