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. 

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Ready to live debt free?

The best decision I've made was to contact David Sklar & Associates, they are experts in this matters and also have dedicated Licensed Counsellors that provide the best customer support, like Rhoda Lewis, who I highly recommend. She worked tirelessly on my case, explaining ever detail to me willingly. She demonstrates a true interest in her clients. I appreciate how she patiently walked me through what to do, step by step. I now have control over my finances, as a result my life is much more peaceful and I can focus on what matters. Thank you!
Nilda H.
20:18 16 Jun 22
Very helpful and friendly! I am more than satisfied with my experience here. And more than happy with the outcome! Would definitely recommend .
Peggy Bulger
15:10 14 Jun 22
Jerry at David SKLAR helped me thoroughly understand my options and made me feel at ease. If you are looking at this type of service/help, I 100% recommend you give them a call.
Colleen H
12:50 14 Jun 22
Rhoda is a wonderful person, She help me and guided me throughout the process. I couldn’t do it without her support and expertise. Now I can start fresh and full of hope of a better life ahead of me.
ariezel erandio
21:33 06 Jun 22
The service I recieved from David Sklar and Associates was great. I was able to meet with Christin Sylver. She is kind, understanding and, professional. She was able to answer all the quesions that I had regarding my debt. At the end of our meetings, I felt that there is a heavy burden lifted from my shoulders. I recommend Chistine to anyone who is looking into debt relief.
Aliya H
12:11 04 Jun 22
Jerry is a very patient person, he answered all my questions and made this experience so smooth and easy for me. I was not sure what to expect but dealing with him made me feel so much better. He sure knows what he is doing and how to put people at ease for sure (should have done this long ago). I recommend him to anyone I am so glad I had him on my side and now to do my part. Thanks Jerry ur greatPattie
Patty Murphy
21:34 18 May 22
Rhoda Lewis helped me achieve a fresh start two and half years ago! She was very professional with a very warm, caring personality! I emailed her today with a question and she responded quickly. She's great at her chosen profession!!
Debbie Livingston
01:24 11 May 22
Nothing but good things to say about Jackie. She was so nice and so understand and everything was so quick and easy. In a matter of a week, there was the solution that I never thought was possible. Thank you so very much for everything that you have done. ❤️❤️❤️
Cassandra Keenan
21:05 10 May 22
I was in a lot of debt and stress, Jackie Stanley with David Sklar & Associates was very professional, and extremely helpful with getting out of debt. I should of did this sooner, they take the all the weight and stress of a persons shoulders, amazing team at David Sklar & Associates!!
Hubert Z
03:08 10 May 22
Jackie helped me out during a really tough time and she made the entire process very easy and painless. I highly recommend reaching out to her if you find yourself in any financial trouble. You won’t be disappointed!
prettylush 13
02:42 10 May 22