Bankrupsy planning a few years ahead

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batnik

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Bankrupsy planning a few years ahead
« on: December 14, 2015, 05:53:51 PM »
Hi there,
So unless my income drastically changes, I'll be claiming bankruptcy in approx 2 years.

Long complicated story, I have an inheritance coming in the next month. Unfortunately it's not nearly enough to change the fact that I will still probably need to claim bankruptcy in the near future.

My question:
Regarding the credit card debt portion- I am wondering if it's better to just make monthly minimum payments for the next 2 years until I claim bankruptcy, or to pay some credit down with my inheritance, which will lower my monthly minimums some what?

Or to just put as much as I can into RRSP or other savings plan, so it's protected?

Thanks

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NotATrust-E

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Re: Bankrupsy planning a few years ahead
« Reply #1 on: January 03, 2016, 11:07:11 PM »
The 12 month rule for RRSPs may not always work - this is not an absolute protection if a creditor thinks that you are parking money so that you can take it out later.

If you don't make the monthly minimums, a creditor can get a judgment so that they can garnish your wages or your bank account. If you are 100% sure that you are planning to file, it doesn't make a lot of sense to pay the credit down.

 

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