Is my retirement plan/pension safe if I file for Bankruptcy?
The Bankruptcy Act provides that a Bankrupt can retain:
Policies of life assurance or endowment assurance in respect of the life of the bankrupt or the spouse of the bankrupt
- Funds in a regulated retirement pension
Funds in a Retirement Savings Account provided that the total value of the above three (3) items does not exceed the Bankrupt’s Pension Reasonable Benefits Limit
However, it is important to note that payments to an RRSP for the 12 month period prior to filing an assignment in bankruptcy go to the trustee.
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