Can the payments made on my RRSP be accessed by my creditors?

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Can the payments made on my RRSP be accessed by my creditors?Can the payments made on my RRSP be accessed by my creditors?

I accessed $25,000 using my home buyer’s loan in 2011. I have been making payments over the last couple of years to repay the loan. I am currently involved in a lawsuit where the legal bills may force me into bankruptcy. I understand that RRSP contributions made outside of 1 year of filing for bankruptcy are safe but am wondering if the funds I used to repay my outstanding home buyer’s plan are at risk?

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The funds you used to repay RRSPs borrowed to purchase a home, ordinarily will be exempt from seizure in a bankruptcy.

However, if the payments were made to circumvent payment to your creditors they may be seized.

One would have to know the amounts repaid and the timing. Your trustee can help guide you on this matter.

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