Can I Acquire An RRSP Or RESP During A Bankruptcy?

Understanding RRSPs and RESPs During Bankruptcy

In the course of financial adversities, you might often wonder, “Can I Acquire An Rrsp Or Resp During A Bankruptcy?” The journey through bankruptcy is fraught with complexities, and the rules regarding asset acquisition, including Registered Retirement Savings Plans (RRSPs) and Registered Education Savings Plans (RESPs), aren’t always clear. This article will aim to provide a clear, comprehensive guide on this topic.

1. After-Acquired Property: What It Means

When you’re in bankruptcy, any property you amass is termed “after-acquired property”. Essentially, this is property that becomes yours after the bankruptcy process has begun.


2. RRSPs and RESPs as After-Acquired Property

Everyday savings, including RRSPs and RESPs, fall under the category of after-acquired property during bankruptcy.

2.1. When the Trustee Steps In

The Trustee is unlikely to intervene with your after-acquired property unless you fail to fulfill your bankruptcy obligations. For instance, suppose you have surplus income payment requirements that you’re not meeting, yet you’re buying an RESP. In this case, the Trustee might seek a Court Order to dissolve the RESP.


2.2. Complying with Bankruptcy Obligations

Conversely, if you’re up to date with your bankruptcy obligations and can still afford to buy an RESP or RRSP, you’re in the clear. Not only is this permissible, it’s commendable financial planning.


3. Other Types of After-Acquired Property

In addition to day-to-day savings, other forms of after-acquired property include unexpected windfalls like inheritances or lottery winnings.

3.1. Disclosing Windfalls to the Trustee

If you’re lucky enough to come into such wealth while you’re bankrupt, you must disclose this to the Trustee. Moreover, you’ll likely have to surrender it, at least to the extent of your outstanding debt.

4. Bankruptcy Rules Across Provinces

The rules discussed here apply regardless of where you’ve filed for bankruptcy in Canada, be it Alberta or any other province.

5. Contacting a Trustee for Specific Queries

Should you have any specific questions or concerns about your situation, it’s best to contact a Trustee directly.


When navigating the complexities of bankruptcy, it’s crucial to have a clear understanding of the rules surrounding after-acquired property. This knowledge can help you strategically plan your financial future and work towards achieving stability.

Remember, the journey through bankruptcy is not an easy one. However, with the right guidance and financial planning, it’s possible to navigate this challenging path and work towards a secure financial future.

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