Cashing in RRSPs to pay Debt and Avoid Bankruptcy?

Using RRSPs to Avoid Bankruptcy

So you’re in debt, and it is getting out of hand and you are looking at all available options, including cashing in your RRSPs to help avoid bankruptcy. But should you really do this?

RRSP Bankruptcy Protection

RRSPs are exempt from seizure in Ontario. Only the contributions made to your RRSPs for the 12 months before bankruptcy was declared, may be eligible with a bankruptcy. With Bankruptcy in Canada, your RRSPs are protected from bankruptcy. This is to help Canadians with their retirement savings.

RRIF and Bankruptcy

RRIFs are also exempted from seizure in a bankruptcy. Only payments made within the previous 12 months before declaring bankruptcy may be eligible with in a bankruptcy.

Safe Keeping Your RRSPs

Many times, we have seen people cash in their RRSPs, desperately, attempting to pay off their debt. When they end up filing for bankruptcy, the RRSPs are gone – giving them no savings for the retirement years, and having to start saving all over again.

The Canadian government protects your RRSPs and RRIFs from Bankruptcy. Every case will be different, depending on the income levels, debt owing and your RRSPs. Before making a rash decision and cashing in your RRSPs/RRIFs, contact us for a free initial appointment. Registered retirement savings plans RRSPs, provides an important part in the financial planning for many Canadians. RRSPs can be the best retirement sources available, especially for those who do not have a retirement plan with their company. Consequently, RRSP protection is vital for protection so that Canadians are able to enjoy a reasonable living standard in their retirement years.

Get Professional Advice

If you are in financial distress, overwhelmed by debt and considering filing for bankruptcy – before you cash in your RRSPs, consult with David Sklar & Associates, Trustees in Bankruptcy.

Take Your First Step Towards A Debt Free Life

If you are overwhelmed by debt and live in the Toronto area, call us at 416-498-9200 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. 

Share This!

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on pinterest

Ready to live debt free?

I cannot emphasize enough how thankful I am for Jackie Stanley's help with filing for bankruptcy.All of us dread being put in this position and we have a million questions about the process but trust me Jackie makes it so easy for you that you don't have to do anything yourself!She is very kind and friendly and puts you at ease right away. She emphasizes with you and let's you know it's not your fault.Most importantly when you leave that first meeting you will not believe the load that is taken off your shoulders. You can actually feel it!You are a godsend Jackie and I can't thank you enough!!I hope you are highly valued there as much as you are by me!
Sue Murray
18:45 05 Dec 21
Putting together and executing a Consumer Proposal can be daunting, that is unless you work with Cori Naron at David Sklar & Associates Inc. Cori's advice and support has been instrumental over the past five years. Thank you Cori!!
Barry Kuntz
20:37 01 Dec 21
I’m very happy with the services I received for Jackie Stanley who helped me get my finances in order. It was a quick and easy process & all of my questions were answered.
Amanda Frappier
01:18 19 Nov 21
I have had the privilege of being supported by Jackie at David Sklar Associate. She was very helpful, very professional and very friendly. She gave me the help I need. Thank you Jackie for your help.
Alex Taylor
22:03 17 Nov 21
Got my probe solved, great service
arny raposo
17:02 11 Nov 21
Jackie at Daivid Sklar and Associates is such a pleasure to work with. She explained everything in great detail and is always there when I have a question or concern. She really cares about her clients.
Steve Medica
09:33 10 Nov 21
I filed a proposal with another group, which came in as a referral from one of my brokers. My experience went from ok to bad to worse, due to lack of communication and education on the process I was to embark on. I worked with Cori Naron in the past, and I came to her now for help on literally doing the work that the other group should have done. Cori stepped in, educated me, advised on rights, responsibilities, how the process works and what potential outcomes may happen. I do not have enough words of recognition and gratitude for what she did - she alleviated stress, anxiety, dead-end thoughts and she made me live again. Congrats to DSklar for hiring her and retaining such talent.
Giani Kokolakis
18:45 25 Oct 21
Very professional service. Before contacting David Sklar & Associates i contacted bunch of other firms they seemed fishy. After I spoke with Jason Sklar at Hamilton Office I discovered professionalism with hope. I was explained every step of my situation with solution professionally. Thank you David Sklar & Associates.
Wajay Awan
07:29 12 Oct 21
I met David a few months ago and i am glad I did. He has helped me all the way through my bankruptcy with good advice and explained every step of the process. David is a very down to earth and very professional. Anytime I've had a question I was able to reach out to David by phone or email and he always got back to me. If your struggling with your bills and need a way to get help, I strongly recommend David Sklar &Associates to help you. My experience with them on 1-5scale would be a 5;; My life is so much better now, thanks to David Sklar.
Bruce Locke
16:13 08 Oct 21
I have had the privilege of being supported by Jackie S, at David Sklar n Associate.She was helpful, professional and friendly. I was able to get the help I needed at a difficult time in my life. I would recommend anyone who needs support with working out their debts to ask for Jackie, she will be waiting to assist however she can to help you through your debts. She works with a team who is always ready and responsive.Thank you Jackie and your team:)
Denise Simpson
15:17 09 Sep 21