If you file for bankruptcy and you have some rrsp’s do they go towards your bills even though they would not cover the total amount? Thank you.
Today 07/30/2010
Bankruptcy Ontario: Free Information about Bankruptcy in Ontario
There are two types of RRSPs in a bankruptcy: seizable and not seizable.
If your RRSP is locked-in, you would not lose it when you go bankrupt. If your RRSP is not locked in, the trustee will seize it, and the proceeds are distributed to your creditors, which means your creditors would get some, but not all, of the money they are owed.