Category: Bankruptcy Questions

Bankruptcy, RRSP and RESP

Recent legislation has deemed RRSP’s to be exempt from seizure by the trustee. However, any contributions made in the 12 months prior to bankruptcy must be paid to the estate. You can work out with your trustee whether you would rather pay it from your income, or have the RRSP company send the funds directly.

RESP’s are not specified by the legislation as being exempt, so the trustee is required to either cash them out or make arrange payment arrangements with you if you want to keep them in place. Many people are under the impression that RESP’s are held in trust for their children. In fact, they do not meet the requirements for a legal trust, so are not protected from seizure in a bankruptcy context.

Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.

Considering Bankruptcy?

Negotiate with your creditors: With the help of a financial or budget advisor you may be able to reach some kind of arrangement, compromise or proposal with your creditors. For example, this arrangement might allow you to repay part of your debt. Show your creditors that you have taken some steps to relieve yourself of your debt. Making contact with a support organization will show creditors that you are taking steps to get your finances under control.

Sell your assets: Selling your assets (possessions) may result in enough money to pay your creditors or significantly reduce your debt levels. Then you may come to some agreement with your creditors and avoid applying for an insolvency procedure.

A Creditors’ Pool or Debt Management Plan: If all your creditors agree, you may be able to combine all your debts into what is called a Creditors’ Pool or Debt Management Plan. You then repay regular amounts into this pool, from which your creditors receive payments. You may be able to negotiate this with the help oaf a non-profit organization, or you may choose to seek assistance from a trustee in bankruptcy or debt management advisor.

Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.