Many people wonder about the impact of a Consumer Proposal on RRSP investments. A lot worry that they’ll lose the money they’ve worked so hard to contribute to their RRSPs when they file a Consumer Proposal. This is a valid concern. After all, your RRSP contributions are funds that you may have saved for many years to sustain you in your future retirement.
This money is vital to your future because you’ll need to live on it one day. When you file a Consumer Proposal, you generally do not have to give up any assets (or your monthly payment to creditors compensates them for the value of those assets, where applicable). This includes funds invested in an RRSP. Therefore, in most cases, the money in your RRSP will remain untouched when you file a Consumer Proposal.
Also, there are provincial and federal exemptions which may apply to your RRSPs and add an extra level of protection for some or all your contributions.