401 K and bankruptcy in Ontario

Posted on Wednesday, November 29, 2006

My wife works in the U.S. and would like to know if her 401K is protected in the U.S. or if it is seizable if she goes bankrupt in Ontario?

1 Comments:

At 12:23 PM, J. Douglas Hoyes, CA, Trustee said…

If she files for bankruptcy in Ontario, the trustee will attempt to seize the money in her 401K in the United States (similar to an RRSP in Canada).

There is no guarantee that the trustee will be able to seize it, depending on whether or not it is locked in or otherwise creditor-protected, but if she goes bankrupt she should assume she will lose it, which may make a consumer proposal a better option.