Frequently Asked Questions

For many, carrying debt can feel incredibly heavy.

Our team is here to help you make informed decisions about how to best manage your debt.

Below are 20 Frequently Asked Questions for your information.

What's Protected

  • Most retirement savings are protected.
  • Some life insurance has a cash value. Some life insurance is term life that only pays when you die. If the beneficiary of the plan is the spouse, child, parent or grandparent of the policy owner, then it is protected
  • RRSPs are typically safe as well. Some of them are governed by insurance rules, where the beneficiary of the plan is the spouse, child, parent or grandparent of the policy owner, then it is protected
  • all RRSPs have protection for money that’s been in the plan for more than a year
  • RDSPs (Registered disability savings plans) are fully protected

What's Not

  • RESPs have no protection (we generally do a payment plan to repurchase the value. it may say there’s $10,000 in there, but if it gets cashed out the government takes back the money it has contributed through learning bonds and grants; the interest is lost.)
  • Tax-free savings accounts are not protected
  • Most recreational assets—dirt bikes, campers, trailers, quads, jet skis, boats — are not protected


debt — something, typically money, that is owed or due
debtor — a person or institution that owes a sum of money
creditor — a person or institution to whom money is owed
consumer proposal — a formal, legally binding process that is administered by a licensed insolvency trustee (LIT). In this process, the LIT will work with you to develop a proposal, which is an offer to pay creditors a percentage of what is owed to them or to extend the time you have to pay off the debts—or both
bankruptcy — a legal proceeding involving a person or business that is unable to repay their outstanding debts. All of the debtor’s assets are measured and evaluated, and the assets may be used to repay a portion of outstanding debt
licensed insolvency trustee (LIT) — federally regulated professionals who provide advice and services to individuals and businesses with debt problems. LITs help people make informed choices to deal with their financial difficulties
unsecured creditors — a person or organization that has lent money and has no right to the property or other assets of the borrower if the money is not paid back
secured creditors — an organization that has lent money under an agreement that they can take particular assets from the borrower if the money is not paid back