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Am I going to lose my retirement?

In Canada, when you declare bankruptcy, your investments and retirement plans can be affected in various ways depending on the type of investments and the retirement plan in question. Provincial laws may also have an impact.

Generally, registered plans and pension funds such as Registered Retirement Savings Plans and Funds (RRSPs or RRIFs), Locked-in Retirement Accounts (LIRAs), and Life Income Funds (LIFs) are usually considered exempt assets in bankruptcy, meaning they are protected, and you can keep them. Some exceptions may apply for recent or irregular transactions contributions.

Typically, an employer pension plan is not seizable.

Registered Education Savings Plans (RESPs) and Tax-Free Savings Accounts (TFSAs), unfortunately, are not protected in bankruptcy and can, like non-registered investments, be used to repay your debts in bankruptcy, depending on their value, the specific rules that may apply to them, and provincial laws. It is important to consult a licensed insolvency trustee for advice specific to your situation and to understand the laws of your province.


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