1. Doug Stuive, CA | Trustee | CIRP
    Doug Stuive, CA | Trustee | CIRP

    The treatment of RRSPs in bankruptcy are dealt with at a federal level through the Bankruptcy and Insolvency Act. Contributions made to an RRSP account in the 12 months leading up to the date of filing for bankruptcy are subject to seizure by the trustee. The balance of the RSP account is exempt from seizure.

    TFSA accounts and RESP are not exempt assets. This means that your Trustee would be able to collapse those accounts for the general benefit of your creditors. At the discretion of your trustee, after reviewing your personal situation, you can sometimes make arrangements to buy back the creditor’s interest in your TFSA and RESP accounts. The Trustee would write to the account holder to determine the cash surrender value of your policies. You would then make payment arrangements to pay the trustee that cash surrender value through a monthly payment arrangement. This would allow the account to remain intact.

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