Tag: Bankruptcy and Insolvency Act

Tax Free Savings Account (TFSA) & Bankruptcy

Feeling confused about how to save money for your future? You have options and saving a small amount of money is a great start. A tax free savings account could be an excellent alternative or perhaps a savings idea in conjunction with an RRSP. A tax free savings account is just exactly what it sounds like-tax free savings. This option is often a good choice for people who need to save for a mortgage or simply need to save but have doubts or fears about locking your money into an RRSP. However, when considering a TFSA you need to know that there is no deadline for a TFSA contribution. Thus, potentially making it more difficult to continuously save and in other words you need to be diligent and dedicated to a savings plan.

However, if you are considering filing for Bankruptcy, your TFSA is not safe and it will be liquidated. This is not true if you are considering a Consumer Proposal. You may at this point want to consider RRSPs if you want to keep your savings safe from liquidation. RRSPs are exempt accept for contributions made in the 12 months prior to bankruptcy. You need to ask your financial advisor because some RRSPs are completely exempt.

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.