Question: I am considering filing for bankruptcy, I have about 35 k in RRSP (mutual funds) i have not made any contributions with the last 12 months to it, will or can creditors dip into my rrsp to resolve debts? Also i have two cars in my name, one is one a loan and the other is owed but worth less that $5650.00 what happens with them??
Answer: If you file bankruptcy in Ontario, you only lose contributions you have made to your RRSP in the last twelve months. If you have not contributed in the last twelve months, you will not lose your RRSP.
As for your cars, for the car with a loan, you can either continuing paying the loan and keep the car, or give it back to the lender. You are permitted to keep one car worth $5,650 or less, so you could keep your other car if you filed bankruptcy in Ontario.
Tags: bankruptcy Ontario, car, RRSP