Question: I am not able to repay my debt as my income is in a locked in rrsp and I can only withdraw 6.8 percent a year. It covers my rent. I am 68 years old and tired of tying to explain this to the creditor who calls several times a day.
What should I do?
Answer: The first option is stop explaining it to the creditor that is calling. When they call, simply say, “I am retired. I don’t have enough income to pay you. Thanks for calling.” Then you hang up the phone. Don’t have a discussion with them. Don’t try to explain. Simply tell them the facts, and then hang up. They may keep calling, but just keep telling them the same thing.
Eventually they will either give up, or take you to court to collect their money. If you have no wages to garnishee or any other assets, they won’t be able to collect. (In virtually all cases it is impossible to seize a locked in RRSP).
Your other option is to declare bankruptcy in Ontario to get rid of the debt. Bankruptcy is a possible option; for more information you should consult an Ontario bankruptcy trustee.