If One Claims Personal Bankruptcy Is Herhis Rrsp Protected

2013-01-29

Generally, when an individual becomes a bankrupt, their assets vest in the trustee and are realized for the benefit of creditors. However some assets are exempt from seizure and realization by the Trustee. Effective July 7, 2008, in accordance with federal legislation, the property in a registered retirement savings plan (RRSP) or a registered retirement income fund (RRIF), as those terms are defined in the Income Tax Act, are exempt from seizure by a trustee in bankruptcy, except for a claw-back for any amount which may have contributed in the twelve (12) months immediately prior to the date of bankruptcy. This claw-back will not apply in certain provinces; however Ontario is not one of those provinces. Therefore, in a bankruptcy filed in Ontario, all funds in an RRSP (or RRIF) are exempt except for any contributions made in the last year. For a listing of exempt assets in the various provinces, pleaseclick hereFind Out More For more information, visit ourfrequently asked questions about debt andbankruptcy, or to test drive our onlineDebt Calculator or Budget tracker workbook. For a no cost, no obligation consultation to discuss a resolution of your debt issues, please contact yourlocal MNP office. Marvin Zweig, CA-CIRP, Trustee Markham, Ontario

Latest Blog Posts

2025-07-14

Nearly half of Albertans are $200 or less away from financial insolvency each month, more than any other province, amid ongoing economic uncertainty

Lindsay Burchill

MNP Consumer Debt Index

Nearly half of Albertans (47%, +2 pts) report they are $200 or less away from financial insolvency each month — more than those in any other province — according to the latest MNP Consumer Debt Index.

Read More

2025-07-14

Nearly half of Quebecers regret their debt as life plans stall and financial anxieties take hold amid ongoing economic uncertainty

Frederic Lachance

MNP Consumer Debt Index

Nearly two-thirds of Quebecers say they desperately need interest rates to go down (63%, -2 pts), according to the latest MNP Consumer Debt Index.

Read More

2025-07-14

MNP Consumer Debt Index holds steady following two interest rate pauses as Canadians brace for ongoing economic uncertainty

Grant Bazian

MNP Consumer Debt Index

Younger adults and lower-income households are most likely to report stress, stalled life plans, and living paycheque to paycheque.

Read More

Consultation icon