If your RRSP is locked-in as a result of your previous employment, the trustee cannot seize the RRSP. The most common example of a locked-in RRSP is an employee who works for a company with a pension plan. The employee leaves the company before retirement, so the employee’s accumulated pension entitlement is converted to a locked-in RRSP.
“Locked-in” here means the employee cannot cash in the RRSP, or take money out of the RRSP, until he/she retires. If the employee cannot get the money, in most cases a trustee in bankruptcy is also unable to access the money in the RRSP.
To determine whether or not your RRSP is locked in, or whether or not you would lose your RRSP in bankruptcy, you should gather all of the paperwork related to the RRSP, and contact a licenced bankruptcy trustee for a free consultation. He/she will review your documentation and determine whether or not the RRSP is exempt.
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